Why Traditional Banks Often Struggle to Support Vulnerable Customers

In recent years there has undoubtedly been a growing recognition of the need to better support those with vulnerabilities. Many high-street banks, especially, are making efforts to improve their accessibility and customer care. The unfortunate reality of this is, more often than not, these traditional systems were never designed with vulnerable individuals in mind. 

Traditional banking is built around a certain idea of independence – that customers can fully manage their finances, understand risks, and make informed decisions without additional input. 

Ultimately, vulnerability is then created where someone cannot function in line with this. Whether they are living with a learning disability, experiencing mental health challenges, or are facing age-related cognitive decline, managing money confidently isn’t always a straightforward process.

The challenge many modern banks face, is the ability to meet the fluctuating needs of vulnerable customers, while still maintaining a necessary awareness of their autonomy. As a result, most standard banking tools rarely provide the adaptability required to support the varying needs of not only these individuals, but the people supporting them, too. 

Controlled Budgeting 

One of the more significant challenges faced by those managing an account through traditional providers is the lack of flexible budget controls. While some banks offer tools such as spending alerts, or basic balance limits, this does very little to help support vulnerable individuals where it does not also enable: 

• Controlled but flexible access to these tools. 
• Budgets that can be tailored to an individual’s needs. 
• Real-time adjustments that can be made by support teams. 

This can make it difficult to sufficiently safeguard vulnerable clients and their finances, while still aiming to reinforce their independence – a key requirement for supported money management. 

Platforms such as Monika have been specifically designed to address this gap, offering various features to ensure individuals are supported, and not restricted by, money management services. This includes the ability to: 

• Set individual budget limits for spending. 
• Adjust access levels depending on the situation. 
• Maintain oversight without compromising client autonomy. 

Built-In Safeguards 

When someone is in a vulnerable position, they are significantly more at risk of financial harm – such as exploitation, or impulsive spending. Traditional banking tends to rely on customers spotting these issues themselves, and further reporting if necessary. For many vulnerable people, this is not a realistic expectation that can be met. 

Monika’s ‘sweep’ system is just one example of how modern banking technology can proactively reduce risk, while still allowing individuals to make decisions on their own behalf. This feature enables excess funds from a client’s budget account to be ‘swept’ back into the primary funding account. By providing built-in features that anticipate client needs, this ensures that any safeguarding solutions are not last-minute fixes, allowing for continued protection. This helps on a larger scale to: 

• Prevent significant overspending. 
• Protect necessary funds (for rent, utilities…) 
• Encourage safe, effective money management. 

————————————————————————————————————–

Poor Visibility For Support Networks 

Maintaining financial and personal wellbeing when an individual is reliant on someone else for support requires the involvement of a solid support network. These groups are often made up of carers, appointees, local authorities, and family members. Not only are these parties often responsible for various administrative financial duties, but also for ensuring each action taken is in the person’s best interest. 

A large majority of high-street banks make multi-party involvement difficult in these instances. Without utilising a risky workaround (such as a shared password, or unauthorised access), it is nearly impossible for more than one person to provide the oversight necessary to manage someone else’s account. Where safe, secure access cannot be enabled for all relevant parties, both the vulnerable individual and their finances are put at risk. 

A key benefit of dedicated platforms like Monika is the ability to provide secure, transparent control, with a flexible understanding that support teams will change over time. Those managing or providing oversight for an account held with us can: 

• Manage access and monitor account activity in real time. 
• Receive personalised payment alerts via app or portal. 
• Make additional money requests where necessary. 

Providing greater access to key banking features and customer support teams is simply not enough to effectively support financial inclusion. While traditional providers do continue to evolve, the systems they work within inevitably make it difficult to meet the need for these dedicated solutions. 

By combining flexible support tools and a well-established understanding of client needs, platforms like Monika are helping to set a new standard – one that ensures vulnerable individuals receive the additional support they require, without compromising their dignity and independence. 

To find out more about our dedicated banking platform, you can book a demo with us, free of charge. Just fill in your details on our home page, and we’ll be in touch. We’re here to help.