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British banks and financial institutions can help fill ‘gaps in support’ related to the treatment and intervention of those exposed to gambling-related harms.
This recommendation has been put forward in a policy paper by the Money and Mental Health Policy Institute (MMHPI), which explores the “role of financial services in tackling gambling-related harms.”
Established in 2016 by Martin Lewis (CBE), the founder of MoneySavingExpert.com, MMHPI seeks to provide new expertise on financial policy to improve public well-being.
As detailed, “The policy paper examines gambling harms in Britain and the role of current account providers in supporting the launch of a new programme of work.”
Banks have a unique visibility of threats
Of particular relevance to the treatment and intervention of gambling harms, banks and financial institutions have a ‘unique visibility’ into individuals’ spending habits, enabling them to identify potentially harmful gambling behaviours and intervene early to mitigate risks.
Insights from financial institutions are needed, as those experiencing gambling-related harms may hide their issues due to the persisting stigma surrounding gambling addiction.
The policy paper underscores the standards and obligations set by the Financial Conduct Authority (FCA) under Consumer Duty, which mandates that “current account providers must prevent foreseeable harm. As such, there is an opportunity to do more to tackle gambling-related harm”.
The UK Gambling Commission’s (UKGC) new Gambling Survey of Great Britain (GSGB) is referenced in the paper, estimating that 2.5% of UK adults have experienced “problem gambling,” with a further 11.9% at risk of harm.
One concerning finding is that one in five people (21.7%) who had gambled in the past 12 months and experienced problem gambling reported losing their home, job, business, or car, or being declared bankrupt because of their gambling.
The financial well-being of young adults aged between 18-34 years is highlighted, as the GSGB notes high rates of gambling-related mental health issues, ranging from financial distress to severe impacts, including suicide.
Gaps in support are identified as critical to intervention, as 58% of those with gambling problems in the past year did not access any support services. To address these support gaps, the paper argues that financial institutions can play a role by actively guiding customers to available resources.
Proactive steps and one-to-one engagements
Banks should engage proactively with customers regarding gambling spend, monitoring transaction patterns to detect early signs of gambling issues, such as high-frequency transactions with gambling operators or gambling before essential expenses like rent.
The report recommends that banks and financial services providers improve their role in tackling gambling-related harms by (1) using transaction data to detect gambling harm patterns, such as frequent gambling transactions or using overdrafts; (2) proactively communicating with and supporting at-risk customers, guiding them to external support services; and (3) enhancing gambling transaction blocks with flexible cooling-off periods and introducing specific spending limits for gambling.
Further recommendations include (4) raising awareness among customers about gambling-related harms and making support tools easily accessible; and (5) leveraging open banking, with customer consent, to gain insights from multiple accounts, enabling tailored interventions.
In terms of monitoring, financial institutions should actively engage with higher-risk demographics, particularly young adults and those who have previously suffered from gambling-related harm or mental health issues.
Banks can lead Cultural Shift
Researchers call for financial institutions to lead a ‘cultural shift’ in how society views gambling-related harms, emphasizing the need to understand gambling as a complex issue influenced by social, economic, and structural factors, rather than merely an individual’s personal responsibility.
Rather than attributing blame to individuals, the report encourages a collective responsibility where financial services, government, and society as a whole work together to create safer environments, regulate harmful influences, and provide tools and services to help those affected.
The report concludes with a recommendation to the government and ministers to “consider the role of the financial services sector in tackling gambling harms and ensure this is an integral part of their plans for gambling reforms”.
“Beyond these government recommendations focused on financial services, there is much for the government to do to tackle gambling harm. Our previous work includes a broader set of recommendations for the government to address gambling harms.”
