Creating a Safer Spending Experience Through Innovative Payment Technologies
Providing financial support for a vulnerable individual is never simple. From extensive administration requirements to consistent account monitoring, finding a system that works for you and the individual you support should be top priority.
When looking for a solution that meets these needs, you would have likely come across some of the common challenges that high-street banking solutions pose. Whether it be minimal account oversight or low balance limitations, these accounts are typically built with a single assumption in mind: that one person controls one account, using one card.
In reality, most vulnerable adults are in situations more complex than this understanding allows for – and broader support networks can often be unfairly disregarded during set-up.
The challenge of developing tools that take these circumstances into account is that of balancing independence and safeguarding. Where a lack of controls can increase exposure to risk or exploitation, too many restrictions can limit confidence and autonomy.
Solutions such as budget cards, biometric tools, and wearable payment methods can encourage safer spending and oversight, without posing a risk to financial security or autonomy. Through the Monika Banking Platform, Money Carer provides supported spending tools such as these for simpler, everyday money management. Below is a breakdown of how these methods can strike the ideal balance between independence and safeguarding:
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How These Tools Help
Promoting Independence
When money management support has been put in place for someone, setting up a dedicated account through which they can make independent financial decisions can help to maintain a sense of autonomy – even when finances are being managed on a larger scale by someone else. Providing vulnerable clients with a Budget Card, for example, can enable safe spending without them feeling micro-managed. This ensures they can make smaller purchases for themselves as they see fit (even if these decisions would generally not be considered wise).
For those who are not capable of handling a card or payment device themselves, Carer Cards can help in a similar way to support day-to-day spending. By making client finances the primary funding source for the account, carers can also safely manage spending without the concern of having to use their own personal funds to provide for clients.
Memory and mobility can also be important issues to consider when it comes to spending habits. PINs and passcodes can be forgotten; small screens and buttons can be hard to navigate – so finding a simpler solution can help with navigating these difficulties in-store. Biometric Payment Cards make use of a built-in fingerprint sensor to authorise payments. By working exclusively with the registered fingerprint, financial decisions can be made by the card holder only, reducing the risk of accidentally (or intentionally) compromising a client’s dignity.
Similar to these cards, Payment Wearables also remove the PIN requirement that comes with most standard cards. Through simple tap-to-pay functionality, vulnerable adults can make payments as they need to with just a tap of the hand. As these devices can be worn around-the-clock, this also reduces dependence on someone else for remembering payment devices.
Maintaining Safeguarding Requirements
Our Budget Cards are made to hold dedicated, regular amounts for vulnerable clients’ spending. These accounts can hold no more than a set limit at one time (which support networks and clients can collaboratively agree on, where possible). By setting these limits and clarifying a regular allowance, client finances stay protected on a larger scale, while spending continues within safer parameters. Crucially, this also reduces the usual frustration and confusion felt by vulnerable individuals in these situations.
Solutions for supporting vulnerable adults with money management have historically been unregulated, cash-based systems – where preventable reconciliation requirements occur as a result of carers using their personal funds. Using a dedicated Carer Card for spending ensures that purchases are made exclusively using a client’s funds. This also helps to avoid accidental mismanagement by keeping the financial responsibility placed on carers to a minimum.
Many vulnerable adults find themselves faced with exposure to financial risk or harm – which occurs most commonly when account details have been shared, or payment devices passed over for someone else to handle. Accounts with known PINs or simple contactless technology are therefore easy to take advantage of if someone has the wrong intentions. Biometric Payment Cards avoid these risks by only working with the registered fingerprint. In the event of mismanagement or theft, this significantly reduces (and sometimes prevents) risks posed to a client’s financial security.
Payment Wearables typically take the form of a ring or bracelet – meaning they simply look like an accessory when not in use. If a device has been lost or stolen, it is therefore unlikely that someone will be able to identify its purpose. Through our dedicated app, clients and carers can also freeze or deactivate a wearable at any time. Thanks to secure NFC (Near-Field-Communication) technology, these devices also never store o transmit sensitive information, making it impossible to detect the connected account unless details have been verbally shared.
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Control Without Compromise
Vulnerable individuals often require the support of another person to safely manage their finances. However, it can be difficult to establish autonomy in these circumstances, without posing a risk to financial security or compromising the client’s dignity.
As financial technology continues to evolve, tools such as the above are helping to foster a more inclusive approach to banking. This includes a recognition that vulnerable adults cannot depend on high-street solutions at present.
These innovations offer something equally as valuable for support networks – the confidence that safeguarding and independence can exist simultaneously, without the occurrence of any significant issues.
Our inclusive range of specialist banking and payment solutions can be accessed via the Monika Banking Platform. By providing the visibility and control that representatives need, support for vulnerable adults can be maintained alongside their autonomy.
If you or someone you know could benefit from payment tools such as the above, don’t hesitate to get in touch. Book a demonstration with us today, and we’ll help with figuring out exactly what you need.