The Financial Services Gap for Powers of Attorney – The Money Carer White Paper

LPA demand surges as outdated banking systems fail donors and power of attorney’s new report urges scalable solutions to protect independence and reduce risk

Money Carer’s latest white paper, The Financial Services Gap for Powers of Attorney, highlights a growing disconnect between the rapid rise in the use of Lasting Powers of Attorney (LPAs) for Property and Financial Affairs and the outdated financial services infrastructure that supports them. Drawing on almost two decades of frontline experience supporting vulnerable individuals, the report sets out a compelling case for systemic reform to ensure financial services better reflect the realities of modern vulnerability, ageing populations, and the increasing need for supported financial decision-making across the UK.

The report makes clear that LPAs for Property and Financial Affairs are no longer niche legal tools. They are now embedded in mainstream financial planning, with over 5 million registered in England and Wales and hundreds of thousands of new applications each year. Demand has more than doubled over the past decade, driven by demographic change, longer life expectancy, and rising awareness of financial vulnerability. However, despite this structural growth, financial systems have not evolved at the same pace, leaving attorneys and donors navigating fragmented, inconsistent, and often inflexible processes.

A central insight is that financial capability does not operate in binary terms. Many individuals experience fluctuating or partial capacity due to illness, mental health conditions, or cognitive decline. Yet most banking systems still treat control as all-or-nothing: either the individual manages independently, or authority transfers entirely to an attorney. This rigid structure fails to reflect real-world needs and can discourage formal arrangements, pushing individuals toward informal and potentially unsafe workarounds.

The consequences are significant. Some individuals share PINs or online banking credentials to access help, increasing exposure to fraud and undermining consumer protections. Others delay setting up LPAs due to misconceptions or perceived complexity. When capacity is lost without an LPA in place, families must apply for deputyship through the Court of Protection—a process that is costly, time-consuming, and administratively burdensome compared to proactive planning.

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For attorneys, the operational challenges continue after registration. Processes vary widely between financial institutions, often requiring repeated documentation and, in some cases, in-person branch visits. This inconsistency creates friction, particularly as branch access declines. Barriers to opening accounts, accessing services, or managing finances are common, especially where multiple attorneys are involved or geographically dispersed.

The report also highlights significant safeguarding risks. While legislative reforms such as the Powers of Attorney Act 2023 aim to strengthen identity verification and reduce fraud at the point of registration, the downstream financial ecosystem remains underdeveloped. There is limited oversight of how funds are used, minimal real-time monitoring, and few mechanisms to detect abuse once authority has been granted. At the same time, donors themselves may be vulnerable to scams or exploitation, creating a complex environment where autonomy and protection must be balanced.

In response, Money Carer outlines key recommendations to modernise financial services. Central is the need for graduated and configurable permissions, allowing donors to retain independence while granting attorneys appropriate oversight. This includes features such as transaction visibility, dual authorisation for high-value payments, and adjustable spending controls that reflect changing needs over time.

The report also calls for enhanced transparency and auditability, with digital audit trails and real-time monitoring to improve accountability and detect potential abuse earlier. In parallel, it recommends a more streamlined and standardised registration process, adopting a “tell us once” approach across financial institutions to reduce duplication and administrative burden. Improved accessibility and inclusive service design is also critical, ensuring systems meet the needs of vulnerable customers and comply with Consumer Duty requirements.

Crucially, the report emphasises the need for a coordinated, cross-sector response. As the LPA market continues to scale, meaningful change will require collaboration between financial institutions, regulators, policymakers, and technology providers to deliver solutions that are both flexible and scalable.

Alongside these recommendations, Money Carer confirms it is preparing to launch a comprehensive banking services solution designed specifically for LPAs for Property and Financial Affairs. Delivered as a white-labelled platform for banks, building societies and fintechs, the solution will enable providers to embed LPA-ready functionality directly into their existing customer propositions.

This solution is powered by Money Carer’s proprietary “Monika” technology platform, which underpins a suite of tools designed to operationalise the report’s recommendations. Through Monika, institutions will be able to implement flexible permission structures, real-time oversight, and improved digital access for both donors and attorneys—helping bridge the gap between legal frameworks and everyday financial management.

Importantly, the solution also advances financial inclusion. Money Carer is introducing tokenised wearable payment technology and tokenised biometric fingerprint-enabled payment cards, designed to support individuals with disabilities, cognitive impairments, or memory-related conditions. These innovations allow users to make secure payments without relying on PINs or complex authentication, enabling greater independence while maintaining safeguards.

By integrating these technologies within the Monika platform, Money Carer aims to create a more inclusive financial ecosystem—one that empowers individuals to remain involved in managing their own finances for as long as possible, while enabling appropriate oversight when needed.

The launch reflects a growing recognition that proactively supporting vulnerable customers is not only a regulatory and moral responsibility, but also a strategic opportunity. Financial institutions that support both donors and attorneys effectively are more likely to retain long-term relationships, reduce complaints, and strengthen trust. Failure to adapt, by contrast, risks customer attrition, operational inefficiency, and increased exposure to fraud and harm.

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