Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Financial educators help older adults navigate digital finance
Jung Hee-jung, a financial educator, teaches senior citizens how to use mobile banking during a program hosted by the Korea Federation of Banks in this undated photo. Courtesy of Jung Hee-jung
By Lee Yeon-woo
Imagine being handed a map of a city you've never visited before. At first, you may feel lost and overwhelmed, unsure of where to start. That experience is akin to what senior citizens in Korea experience as they try to adjust to digitalization, especially in the financial sector.
As an increasing number of financial institutions are ceasing operation of physical branches, not understanding the digital environment can lead older adults to become isolated from financial activities.
Even for those who are willing to learn, the barriers can be high.
"If the elderly ask their children for help, the children sometimes find it tiresome, urging them to visit physical branches instead. Even though some try to help them, children are not always so kind in their explanations, using difficult words that some elderly people find hard to understand. These experiences dent their confidence and make them shy away from learning about digitalization," Jung Hee-jung, a financial educator, told The Korea Times.
What if those who understand the struggle and speak their language were to assist them instead?
That's what the Korea Federation of Banks (KFB) tried from last October to March. Thirty-six selected financial educators, who were slightly younger but still close in age to the elderly, were dispatched to places such as community centers to teach the basics of digital finance. The course consists of eight sessions.
Yoon Kyung-sung, a financial educator, poses during an interview at an office in Seoul, May 16. Korea Times photo by Lee Yeon-woo
"When elderly people go to the bank and wait, wondering why their number hasn't been called yet and why someone who arrived later is being served first and leaving quickly, it makes a big difference whether they understand what's happening or just wait without knowing and enduring it. That's why I tell them that we can also take control of our lives by learning digital finance," Yoon Kyung-sung, another educator, said.
Yoon emphasized that she tries to encourage her students by explaining that mobile banking is not difficult, just unfamiliar to them. The education helps older adults, even those in their 80s or 90s, feel a greater sense of self-efficacy in society.
"One of my students has a grandson who had just started university. After attending the program, she wired some money to his account as a surprise gift. Her daughter and grandson were so surprised, and my student was very happy about that. For us, sending money through an app is not a remarkable thing. But for them, being able to do that empowers them," Yoon said.
It can also help to prevent falling victim to financial exploitation and voice phishing, as an increasing number of older adults are targeted in such scams due to their lack of digital knowledge.
Elderly participants take a quiz after completing eight sessions of a financial education program hosted by the Korea Federation of Banks (KFB), at a convention center in Seoul, April 25. Courtesy of the KFB
One elderly student actually discovered he had been financially exploited by his children, which left him devastated.
"He couldn't go to the bank for some time because he was sick, so he let his son and daughter-in-law manage his banking accounts. Feeling better, he came to the program and found out that they had withdrawn a significant amount of money without telling him. Many elderly students who were with him at that time were very sympathetic with the situation," Jung recalled.
Both educators highlighted the importance of repetition, not only within each class but also in terms of the number of classes.
"When you get old, you turn around and forget things. To make them understand certain concepts, you need to constantly repeat explanations in the class. And it is also important that these kinds of classes do not end after one session. Elderly people need continuous practice," Yoon said.
One of the additional perks of the program is that it also helped educators regain confidence in the second half of their lives.
Yoon, who had halted economic activities due to child-rearing, said teaching in this program also helped her learn more about digital finance and open her eyes to a new world. Before deciding to apply as an educator for this program, she rarely used mobile banking as well, and as such relates more to the elderly students.
Jung Hee-jung, a financial educator, shows various banking apps installed on her phone during an interview at an office in Seoul, May 16. Korea Times photo by Lee Yeon-woo
Jung said the program helped her overcome a difficult time on her life as she successfully shifted her career from being a bank employee to an educator. She is very much enjoying her busy new life, feeling more passionate day by day.
"The banks offers so many features in their apps, and everything changes so fast. I rigorously check numerous banking apps the day before the lecture, as many students use different apps," Jung said. "I gain strength from my students who thank me for teaching them kindly. I want to keep working hard at this job."