Why modern finance needs to catch up with real life
Lasting Powers of Attorney (LPAs) have become a central part of financial life in the UK. What was once seen as a legal safeguard for later life is now a mainstream tool, used by millions to ensure that trusted individuals can step in and support financial decision-making when needed.
But while the legal framework has evolved, the financial systems supporting it have not.
Our latest white paper, “The Financial Services Gap for Powers of Attorney,” explores a growing disconnect between how LPAs are used in practice and how financial services are designed to support them.
A system built on the wrong assumption
At the heart of the issue is a simple but critical flaw:
Financial control is still treated as binary.
You either:
- Manage everything yourself
- Or hand over full control to an attorney
In reality, financial capability doesn’t work like this.
People may:
- Experience temporary illness or recovery
- Live with fluctuating conditions
- Need support in some areas, but not others
Capacity can change over time. Support needs can increase and decrease. Independence can coexist with assistance.
Yet most financial systems cannot reflect this nuance.
When systems don’t fit, people work around them
When formal structures feel too rigid or restrictive, people don’t stop needing support — they simply find other ways to get it.
This often leads to informal and unsafe workarounds, such as:
- Sharing PIN numbers
- Allowing others to use bank cards
- Passing on login details
These behaviours are not rare. They are widespread.
They also remove key protections built into the financial system, increasing exposure to fraud, financial abuse, and loss of control.
In many cases, these risks are not created by individuals — they are created by systems that don’t offer a workable alternative.
The human impact: independence vs protection
Financial independence is closely tied to dignity, autonomy, and confidence.
For many people, the ability to:
- Pay for everyday items
- Manage spending
- Retain visibility of their finances
is fundamental to maintaining a sense of control over their lives.
However, when systems only allow full delegation, that independence can be lost entirely.
Our white paper highlights real-world examples where families are forced into difficult trade-offs:
- Protect someone financially, but remove their access
- Or maintain independence, but accept higher risk
This is not a technology limitation. It is a design limitation.
A growing problem at scale
The urgency of this issue is increasing.
LPAs are growing rapidly across the UK, driven by:
- An ageing population
- Increased awareness of financial vulnerability
- Greater emphasis on future planning
At the same time, the operational experience remains fragmented:
- Attorneys must register separately with each bank
- Processes vary widely between providers
- Digital access is inconsistent
- Opening or managing accounts can be complex and slow
What may once have been manageable at low volume is now becoming unsustainable at scale.
The missing middle
What’s clearly absent in today’s system is a middle ground.
A modern approach to LPAs should allow for:
- Graduated levels of access
- Adjustable permissions
- Real-time visibility and oversight
- Shared control where appropriate
For example:
- A donor could retain day-to-day spending ability
- While an attorney monitors transactions
- With additional controls applied only when needed
This kind of model reflects how people actually live — not how systems assume they do.
Protection doesn’t have to mean loss of control
There is often an assumption that safeguarding requires restriction.
In reality, better-designed systems can enhance protection while preserving independence.
By embedding:
- Transparent audit trails
- Flexible permissions
- Adaptive controls
financial services can respond dynamically as needs change.
This creates a model where:
- Support increases when risk increases
- Independence returns when it’s appropriate
Rather than forcing a permanent shift to full control.
Time for financial services to catch up
The question is no longer whether LPAs will continue to grow — they will.
The real question is whether financial services will evolve alongside them.
To close this gap, the industry needs to move towards:
- More flexible system design
- Better integration of support mechanisms
- Consistent, scalable processes
- A deeper understanding of real-world user needs
This is not just about improving efficiency.
It’s about:
- Reducing risk
- Preventing financial abuse
- Supporting millions of people to manage their finances safely
- Preserving dignity and independence
A system designed for real life
LPAs represent a shift in how we think about financial control — not as something fixed, but as something that can be shared, supported, and adapted over time.
The systems around them need to reflect that.
Because ultimately, the goal isn’t just to enable access.
It’s to enable people to live with:
confidence, safety, and independence — on their own terms.
Read the full white paper: https://moneycarer.org.uk/lasting-power-of-attorney-white-paper/