Economic effects of the digital divide on pensioners in Germany regarding retail banking services

Abstract

In the recent two decades, many service sector companies like banks altered their services and fees towards a regime whereby customers either bank online on their own or face comparatively high fees. The current phase of interest rates close to zero or even below - due to the euro crisis - enhances this trend. Many commercial banks in Germany have increased their fees for current accounts significantly, the common "free current account" policy has come more or less to an end. Many of the pensioners - in Germany there are more than 20 million retirees - are affected, because their pensions are quite low and they are not familiar with doing their banking the online way. This paper analyzes the situation based upon statistical data and develops other fee structures which are more just, from a social point of view, than burdening the elderly with low incomes.