What Happens To The Money In Your Piggybank Account When You Die?
So, its becoming increasingly difficult to talk about personal finance or savings without mentioning Piggybank.ng.
The online savings platform is gaining increased popularity.
Already tens of thousands of people, especially young people, have already signed up and are saving hundreds of millions of naira every month.
The Piggybank concept is attractive. In a clime with poor savings culture, the platform encourages one to be disciplined with savings.
With Piggybank, one is not allowed to withdraw until agreed date. If you must cash out, then you’d have to pay a fee.
And there is incentive for keeping your savings much longer before cashing out, with a feature called SafeLock.
So, it is not surprising that the platform has grown so big within the last 2 years, attracting more than a billion naira in Savings and recently raising $1 million seed investment.
But then comes the question that has bugged every other mobile money operators, that have tried to drive savings through mobile technology – what happens if a user dies?
In the past, operators would ask you to try not to be so morbid. But when I put the question to one of Piggybank’s co-founders, Joshua Chibueze recently, via a telephone chat, he had a ready answer.
He told me that they have envisaged that and made provision for people to fill in their next of kin on the dashboard when signing up.
So, what happens is that if you were to answer the eternal call, Piggybank will contact the person you filled in as next of kin and hand in your savings to the person.
This presents another dilemma for users, because most of the time, users want to save money without telling even the person closest to them.
And it does make common sense if you don’t want to drain your savings when slightly pressed for cash.
But you would have to choose between letting that person know about it or risk losing the entire savings in case of eventuality.
So, how does Piggybank get to know a user has answered the eternal call?
According to Chibueze, there is no way for them to know now, unless a next of kin approaches them, just as you would approach a money deposit bank if a relative pass on.
However, as a technology platform, we expect that sooner than later, they would be able to develop a tool that could possible inform them when a user passes on.
So, if you have a Piggybank account, you should update your KYC and fill in a Next of Kin. That is the only way you could avoid saving in vain if the unexpected happens.
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