People rely on financial apps to tackle everything from investing to making payments. And while apps are convenient and practical components of everyday life, not many people consider what happens to their financial information in the event of a terrible injury or death. Fortunately, fintech platforms are equipped to manage these scenarios with a high level of security and transparency.
Read on to discover six fintech safeguards that are in place if a fatal accident affects a user.
1. Alerts to Emergency Response Systems
Serious accidents can wreak havoc on your mental health, especially if you’re unable to monitor your finances in the immediate aftermath. Some fintech platforms are linked to emergency response systems that can intervene if an accident occurs. Emergency systems may include a health monitoring device or a car insurance company that uses telematics to monitor driving behavior. Real-time data from these sources can alert fintech apps to take action. Maybe data indicates that a user has been in a car crash. As a result, the user’s fintech platform could suspend the account until the situation has been evaluated. That way, no transactions can leave the account, preserving the user’s current financial status and reducing the potential for a data breach that compromises the user’s finances or identity.
2. An Instant Freeze to Protect Finances
What happens if someone dies as a result of an accident? Fintech apps should and do freeze accounts to prevent mishandling of finances. The best fintech platforms can do this quickly when an insurer or family member offers notification. Standard operations, like insurance payouts, may continue while other functions, like trades, may halt until beneficiaries work through the process of transferring ownership and assets.
3. Timestamped Evidence for Legal Situations
Any time an accident occurs, it’s critical to have timestamped documents or communications to help reconstruct what happened. Maintaining these records can help determine liability and allow courts to make fairer, more accurate decisions. Data requests and actions within an individual’s account can help shape outcomes. For instance, for readers in Oklahoma who may be dealing with serious accident cases, consulting an Oklahoma City wrongful death lawyer can provide valuable legal guidance and advocacy.
4. Partnerships Between Apps and Insurance Providers
When fintech apps work with insurance providers, the claims process can move quickly with disability or death claims. Embedded insurance providers make it easier to start the claims process since the fintech app has critical data ready to submit to the insurer. As a result, insurance companies or familes following up after the death of a loved one won’t need to contact lots of different entities to find policy numbers or other pertinent details for claims.
5. Debt Forgiveness
If someone passes away during an accident but that individual had credit card debt or substantial loans, those burdens can be a lot to shoulder for the next of kin. Fintechs should consider pausing loans and working out feasible payment plans, or even dismissing the remaining debt altogether. This can save the family a lot of stress and contribute to a better image for the fintech.
6. A Dedicated Case Portal
Dealing with a horrific accident requires accounting for a lot of intricate steps in the claims process. Fintechs can simplify the process by using a dedicated dashboard to organize data and update families on claims timelines. When families are mourning the loss of a loved one, it’s best to make every effort to minimize the financial fallout.
Planning for Sensitive Situations
No one wants to face the death of a loved one, but fintechs can make navigating the aftermath easier. Fintechs should offer centralized dashboards for claims updates and work closely with insurers. And they should find the best path forward for situations that involve significant debt. Ultimately, these actions will reflect well on the fintech company and help the families heal.
