Economic Essay Contest Digital divide is now know-how gap

As Korea becomes a “super-aged” society, its biggest financial risk isn’t inflation or cybercrime — it’s the growing divide between those who can navigate digital banking and those who can’t.

Nearly all older adults own smartphones, but access is not the problem. As digital theorist Howard Rheingold put it, “Soon the digital divide will not be between the haves and the have-nots. It will be between the know-hows and the non-know-hows.”

In a country rushing ahead with cashless payments, AI-driven apps and fintech platforms, the real challenge isn’t technology itself but about making it usable for everyone. So if financial institutions want to maintain the trust of their older customers, they must rethink how digital banking is built and who it’s built for.

Digital banking is deeply integrated in Korean society, but for many older adults, it remains intimidating and difficult to use. A few reasons include confusing layouts, strange terminology, physical impairments and a fear of fraud — to which older adults are the most vulnerable.

Even apps that offer “senior modes” often give them ambiguous names like “Simple Home” or “Easy View”, making them harder to find and activate. The fast-paced, design-heavy interfaces of online services seems to have been made solely for digital natives, not the people used to the straightforward process of in-person banking.

Korea is not the only country facing issues. Sweden, which also deals with an aging population, has tried to lean into the inclusive approach. In the Nordic country, banks work with municipalities to offer free workshops in digital banking, and at libraries and retirement homes, older adults are taught how to manage money online and protect themselves from scams. The goal is both to digitalize services and to bring the users along in the process.

That’s not to say that one country does it better. Sweden’s model is not perfect and there’s still much to improve, and since Korea is a global leader in fintech innovation and mobile payment use, both countries could benefit from sharing insights with one another. Korea’s technological advancements could be strengthened by adopting Sweden’s more comprehensive, user-first practices, while Sweden could take inspiration from Korea’s efficiency in quickly delivering services.

In order to narrow the divide before it grows larger, Korean financial companies should implement practical solutions. In the short term, banks should more prominently feature “senior mode” interfaces with large fonts and easily accessible functions. Voice guidance and visual prompts could also assist those with sensory or motor limitations and build independence over time. As Steve Jobs famously said, “Design is not just what it looks like. Design is how it works.”

But even perfect design means little without support. As in Sweden, Korean banks should work with community centers, churches, and libraries to provide digital literacy programs. Not just one-time tutorials either, but consistent help over time. For those living alone, another option could be a video call service where seniors speak with a banker from home. By showing their face and ID for identification, much like FaceTime but combined with Face ID, they could be guided by a real person. These systems already work in healthcare. Why not finance?

Better yet, banks could send trained staff to visit customers at home, just as welfare workers do for other services. Of course, in-home visits related to banking would require strict safety protocols, such as a clear ID, scheduled appointments, background checks and phone verification systems for safety.

For many seniors, trust is just as important as convenience and banks must work hard to maintain it. Especially in finance, trust is essential but with all the new digital services, it’s also very fragile. A confusing app update, a phishing attempt, or an impersonal interaction can quickly destroy a customer’s sense of security.

In the long term, financial companies should invite older adults not just to use their platforms but to help shape them through testing and surveys to make sure they truly consider everyone’s needs and not the assumptions of younger developers.

Families and close communities play a role too, as seniors living with younger family members are more likely to use mobile banking. Banks could promote “tech buddy” programs that encourage and reward relatives or trained volunteers to help older users download apps, complete transactions, or troubleshoot problems. Here, as well, discretion is needed to guarantee safety and trust.

Digital progress moves fast, but real progress means slowing down to make sure no one is left behind. In a super-aged society, inclusive design and meaningful support becomes a bridge between generations and a foundation for trust. Because in the end, the true divide won’t be about who has a smartphone, but who knows how to use it, and that difference will shape inclusion — or exclusion — across the future of financial services.

Beata Viktoria Silfvernagel is a student at Ewha Womans University.