Around 16% of Belgium’s population, or 1.9 million people, do not use online banking, according to a report published on Friday by the non-profit organisation Financité.
The report highlights concerns about the impact of bank closures on those who are not digitally connected, particularly the elderly.
The data shows that more than half (54%) of Belgians aged between 75 and 89 avoid online banking services, underscoring a digital divide that leaves a significant portion of the population vulnerable as physical bank branches continue to close.
Younger demographics are also affected, though to a lesser extent, with many individuals lacking the necessary digital literacy or access to reliable internet services.
Bank branch numbers declined by 9.7% between 2022 and 2023, the report found. Since 2011, Belgium has lost 77.6% of its branches, driven by a shift toward digital services and cost-cutting measures by financial institutions.
This decline has left many rural areas and smaller communities without easy access to in-person banking services, making financial management challenging for those who prefer or rely on face-to-face transactions.
The decline in physical banking infrastructure is compounded by a reduction in ATMs across the country. According to the latest figures, Belgium had between 4,056 and 4,076 ATMs by the end of 2023, down from previous years.
This equates to one ATM for every 2,886 residents, significantly higher than the eurozone average of one per 1,312 residents. In some regions, residents must travel considerable distances to find a functioning ATM, adding further inconvenience and cost.
Technical and safety regulations have limited the installation of new ATMs, further exacerbating the issue, especially in lower-income neighbourhoods.
Reports earlier this year indicated that ATM shortages primarily affect poorer communities, sparking calls for greater transparency in ATM distribution and better planning to ensure equitable access.
Financité’s findings suggest the shift to digital banking is leaving many citizens reliant on third parties to access their finances, potentially exposing them to financial abuse and reducing their autonomy.
Elderly individuals who are not comfortable with digital tools are particularly at risk, with some having to depend on family members or caregivers to manage their banking needs.
The report has intensified concerns over financial inclusion in Belgium as the country’s banking sector continues its transition to a digital-first model.
Policymakers and consumer advocacy groups have called for measures to mitigate the negative impact on those who are unable to adapt to digital banking, including maintaining essential physical banking services and improving financial education.