No products in the cart.
- Latest
- Trending
ADVERTISEMENT
People with dementia report many challenges when working in the financial services and payments industry. retail therapy, New report published by International Longevity Center UK (ILC), in cooperation with its supporting partners, abrdn Financial Fairness Trust.
Through organized focus groups and innovation workshops, the report interviewed people with dementia and their caregivers.
People with dementia should be able to access financial services with the confidence that they will be protected and supported if something goes wrong. Vivian JacksonProgram Manager of the abrdn Financial Fairness Trust.
The report calls on the financial services industry to do more to help this customer group. In doing so, they make the sector safer and more trustworthy for everyone. can do.”
Lack of trust in the industry and lack of understanding of the product were cited as issues by respondents. They reported that customer-facing staff were not always properly trained to serve this type of customer.
The responses also indicate a willingness to put in place appropriate protections to prevent customers from selling unwanted products.
The data collected in the report highlight how important it is for the industry to fully understand how diseases like dementia can lead to risky behavior and unwise investments.
Too many choices, reluctance to accept support or admit vulnerability were also concerns raised by study participants.
The report highlights that caregivers are often seen as supporting people with dementia, but many lack confidence in managing their own money and have little support available. Caregivers report that bank closures have made access to information and support more difficult.
The ILC has found that a Lasting Power of Attorney (LPA) is essential to empowering and supporting people with dementia and their families.
In context, an LPA is a legal arrangement by which a person with limited or diminished mental capacity appoints an individual to manage their affairs on their behalf.
Of the two different types of LPAs, there are LPAs that deal with property and affairs and a second type that specifically manages health and welfare.
Although it offers a viable solution to financial and asset management for people with dementia, lack of information, cost of enrollment, and time are all mentioned in the report as hurdles to LPA’s effectiveness.
The LPA is great, but too many people are registering too late.Both the industry and people with dementia believe it will make the process easier and more consistent, he explains. David SinclairCEO of the ILC.
In addition to these, the financial services industry is not always aware of multiple attorney powers, in addition to industry examples of “overly cautious.” It is as per the report.
Corresponding interviews with the financial services industry revealed that the lack of consistent practices when dealing with customers using LPAs was one of the main sources of “misunderstandings.”
The report also finds significant problems faced by people with dementia when it comes to managing payments.
These issues included difficulty with cash payments and problems remembering card personal identification numbers (PINs).
However, contactless payments were seen as liberating and empowering for people with dementia (although those with impulse control issues need protection).
The ILC has heard that online shopping and contactless payments are often great for many people in the early stages of dementia, Sinclair confirms.
The solution isnt just using high tech or changing laws. We need to be kinder and more cooperative.”
While there is value in having contactless payment limits, some interviewees emphasized that it can cause anxiety to the point where they go over payment limits and have to enter a PIN.
The report’s authors suggest that prepaid or restricted cards can protect independence while avoiding the risk of overuse.
The ILC was keen to highlight the importance of maintaining choice and independence, but the report found that some people with dementia “sit ducks for financial abuse.” suggests.
The researchers highlighted examples of people finding subscriptions and direct debits they may not have actually wanted to set up.
The report argues that innovations such as hidden digital straps for people with disabilities are needed to easily identify and support people with dementia.
The report’s final statement describes a range of initiatives to help reduce financial risks for people living with dementia and help them manage their finances.
The ILC used its findings to support calls for a review of the LPA law to consider whether the procedure could be simplified. We encourage governments and dementia professionals to work together to solve the problems people face when accessing LPA services.
Additionally, the same approach was called for among insurers and banking providers to jointly develop a more consistent approach and procedures for working with attorneys.
We need to harness the potential of existing and new technologies to make life easier for people with dementia and their caregivers, continues Sinclair.
The financial services industry needs to use technology to provide more and better products and services that meet the needs of people with dementia. We need to make sure it is designed to be as easy to use and accessible as possible.
There seems to be a growing demand in the industry for better and more personalized service. Johnny Timpson OBEFinancial Inclusion Commissioner and Financial Services Consumer Panel member explains.
My industry must respond to the challenges highlighted in this report, he says. Regulated businesses need to understand that if they can serve consumers with dementia well, they can serve all vulnerable customers well.
Under the new Consumer Mandates Authority, all financial services firms and practitioners must act to deliver positive outcomes for their retail customers.
” Financial Conduct Authority (FCA), and the new mandate also allows organizations to better identify vulnerable customers and safely and quickly track access to support, for example by developing dementia and vulnerable customer social prescribing partnerships. We need to promote innovation to
Pension’s Midlife MOT provides an ideal opportunity to introduce consumers to the benefits of having an LPA and why an LPA is integral to their pension and lifetime mortgage planning.
