Safe-deposit boxes go virtual with free FidSafe service
A generation ago, nobody would have thought people could apply for mortgages online, compare bank rates over the Internet or pay their bills with a smartphone.
But now those and many other once-unthinkable financial practices have become routine. Are safe-deposit boxes the next things to go digital?
In some ways, yes, but probably not entirely. Many people still will find bank safe-deposit boxes good places to store tangible valuables, such as rare coins, jewelry and heirlooms. But as for important documents, they could be headed for obsolescence.
Most Americans already store documents on home computers, tablets or phones. Fidelity Investments has gone a step further by unveiling a broad, secure document-storage service called FidSafe. It's a free online tool that can be used by any U.S. resident 18 or older, including those who aren't Fidelity customers.
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"There's no fee, either for Fidelity customers or non-customers," said Dan Brownell, CEO of XTRAC Solutions, which is operating the service for Fidelity. "We believe something like this is very useful and doesn't break our bank to provide it."
FidSafe account holders might desire to do more business with Fidelity as a result of using FidSafe, so the program could help retain or attract customers, but Brownell said further business relationships aren't a requirement.
The company also vows not to serve up targeted online ads based on the types of records a person stores. That's partly because the data are encrypted, so the information isn't accessible to FidSafe staff (except to meet legal requirements) or other third parties. For example, Fidelity says it won't be pitching you mutual funds based on what you hold with another company.
All types of documents and records can be stored — not just brokerage or bank statements but insurance policies, tax returns, home title papers, birth and marriage certificates, wills and trust papers, alimony/child-support documents, health directives and credit reports.
There are many reasons why a service like this could come in handy.
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Suppose a flood or wildfire forces you to evacuate. If so, you could use the service to check your homeowners policy, without having to paw through your files at home. If you apply for a job, you could download your reference list remotely or produce a digital copy of your college diploma. If your wallet gets stolen while you're traveling in Paris, you could download a copy of your passport.
"People like to have copies of important documents when they're traveling overseas or if they feel the paper originals would be at risk," Brownell said.
Traditional safe-deposit boxes come with drawbacks, too, especially if you need quick access. Boxes are available only during bank hours, and a box could be damaged or off-limits if the branch itself has been hit by a flood, an earthquake or a fire. And the contents aren't protected by deposit insurance (though they might be covered by your home insurance policy).
And if someone else needs to locate your will, health care directive or something else stored in a safe-deposit box, they won't have quick access unless you arranged for it ahead of time.
Similarly, you could still maintain copies of important paperwork on a home computer or smartphone, but there's a good chance that's less secure, especially phones, which can be lost, stolen or dropped into fish tanks. At a minimum, a service like FidSafe can serve as a smart backup plan.
With FidSafe, users have various ways to share key documents with a trusted relative, friend or adviser. In fact, owners can arrange to pass on documents upon the owner's death. "It's a trusted service that allows a sharing of information," Brownell said.
Documents can be transmitted into the system in various ways, from uploading computer files or scanning papers to taking photos and sending them over. Participants will be able to store up to 5 gigabytes of data.
Other document-storage services are available, including those geared to wills, trusts and other estate-planning papers. But Fidelity's long history, solid reputation and willingness to serve non-customers for free might give it an edge.
Reach the reporter at russ.wiles@arizonarepublic.com.