Help the senior citizensDon't expect the elderly to keep themselves updated on

technology to carry out basic financial transactions

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Mr. Joshi has been a long time M reader, following my writ ing since 2003. He still sends melong emails. He was a 65-year old retired engineer then, offering consulting services. He isnudging 80 today . While still active, he rues the fact that his financial life has becomecomplex. He is a simple investor in the post office, bank deposits and mutual funds, butstruggles with one thing or the other. Wealth management for very senior citizens has notreceived enough attention. How we treat those whose contributions have been in the pastis a reflection of the character of a society. We have failed our elders in many respects, andfinance is not an exception. The biggest asset of senior citizens is their time. They can porethrough long forms that others sign without a thought.

They can discuss and debate before they make a decision. But not all of them like to spendthat time working on finances. Sadly, the process of financial transactions takes too muchof their time and energy. Instead of offering the 0.5% or 1% higher interest rates, bankscould instead offer home services to senior citizens. Phone banking is extremely trying onpatience, and Internet banking does not offer comfort. Banks can employ a team of caringrelationship managers who specialise in senior citizen services.

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The biggest challenge for senior citizens is technology. Many seniors are seriouslychallenged by smartphones, login protocols and menu choices in today's userinterfaces. To assume that elders can learn to use technology easily is to overlookthe learning process of the mind that seeks cumulative continuity and assimilation.Without a comprehensive understanding of how things work, elders are unlikely tobe confident about logging into an interface and follow instructions. That is nothow they have lived and learned. The benefits a bank or financial entity has earnedfrom technology should be used to cross-subsidise personalised services for seniorcitizens.

Everyone hates taxes. Seniors hate it even more, because of the paperworkinvolved. It does not help that a new class of super-seniors has been identified witha basic exempt slab of `5 lakh. Mr. Joshi has a house in Mumbai and its rent alonewill make him a tax paying super-senior. Given the demographic profile of thecountry and the great pride in India being a “young“ country , what could we loseby exempting anyone over 75 from filing returns or paying taxes?

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With technology, one would have assumed that the amount of paperwork would havereduced. Sadly no. There are many who write to me about having to renew the KYC withthe bank every three years. The pain of producing the PAN card or facing a large TDS in thefixed deposit; the woes of KYC and in-person verification for mutual funds; the needlesstrips to the post office on maturity of deposits; and the nightmare of physical sharecertificates worth a fortune, but still not converted to demat. After the Aadhar card, theremust surely be a simpler way to identify citizens easily? Why should the elders pay heavilyfor the failure of the government to put an enabling infrastructure that serves its ownpurpose in place? An organisation seeking information for its own compliance needs tofund and facilitate the process with least inconvenience for customers.

The senior citizens I know grapple with these challenges in their own ways, some morerisky than they perceive. Many have their accounts tagged along with the wealthier kids'accounts, so they receive service and attention. Some have trusted CAs. In most cases,there is a relative, friend or trusted servant, who holds everything from the ATM PIN tocopies of the documents, and does all the running around either for a fee or out ofgoodwill.

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There are innumerable stories of fraud. While the killing of a senior citizen to steal jewelleryreceives a lot of media attention, the polishing off the bank balances or siphoning off investmentsfinds no mention.

What can be done to make life easier for super seniors? First, the onus of identifying them andverifying their address should be on the local police. Enabling technology that updates their Aadhar,PAN, KYC and all other identifying documents should be handled by the police and not by theseniors themselves. Second, paperwork such as tax returns, 15G, 15H, PAN proof and such shouldbe done away with. It is fine to recognise a small group of citizens for their work and allow them theluxury of tax-exempt lives in their senior years. Third, personalised services for financial productsshould be reintroduced for the benefit of senior citizens, whom the relationship manager will visit,work with and deliver home services. Fourth, toxic financial products, dubious deposits andcomplex structures should be banned from being sold to seniors. Wealth management for seniorcitizens should be subject to a tighter compliance process, where recommendations andperformance are monitored to ensure there are no frauds.I wonder if high-powered committeesthat analyse problems and offer solutions would consider senior citizens and their wealth as asubject worthy of examination? The author is Chairperson, Centre for Investment Education andLearning

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