British banks and financial institutions can play a critical role in addressing gaps in support for those experiencing gambling-related harms. The Money and Mental Health Policy Institute (MMHPI) has issued a new policy paper that calls on banks to become key players in the treatment and intervention of gambling harms, focusing on how financial services can actively mitigate these issues.
Martin Lewis CBE, founder of MoneySavingExpert.com, established MMHPI in 2016 to provide financial policy expertise aimed at improving public well-being. The institute’s latest paper examines gambling harms across Britain and highlights the role of banks and current account providers in supporting a new program targeting these issues.
Banks’ Unique Insight into Harmful Spending
Banks and financial institutions have unique insight into customers’ spending patterns, which allows them to identify signs of potentially harmful gambling behaviors early on. This visibility enables banks to step in proactively, reducing risks for those affected by gambling harms. Financial institutions need to recognize and respond to this responsibility since many individuals hide their struggles due to the stigma surrounding gambling addiction.
The Financial Conduct Authority (FCA) has set standards under its Consumer Duty, requiring banks to prevent foreseeable harm. The policy paper emphasizes that this framework provides a significant opportunity for banks to take stronger action against gambling-related harms.
Drawing from the UK Gambling Commission’s recent Gambling Survey of Great Britain (GSGB), the paper notes that 2.5% of UK adults report “problem gambling,” with an additional 11.9% at risk. Alarmingly, one in five individuals who experienced problem gambling within the past year reported severe consequences, such as losing their home, job, or business, or even declaring bankruptcy.
The survey further highlights that young adults aged 18-34 face substantial financial and mental health challenges linked to gambling. For many, these issues escalate into severe distress or, in some cases, suicidal thoughts.
With 58% of people with gambling problems not accessing support services, the paper urges banks to actively guide customers to available resources, addressing critical gaps in support.
Proactive Recommendations for Banks
The report recommends that banks engage more proactively with customers regarding their gambling spending. This includes monitoring transaction patterns to detect early signs of gambling issues, such as frequent gambling transactions or gambling before covering essential expenses like rent.
Specific actions include:
- Using transaction data to identify patterns indicating gambling harm, such as frequent gambling or the use of overdrafts.
- Communicating proactively with at-risk customers and connecting them to external support services.
- Strengthening gambling transaction blocks by adding flexible cooling-off periods and setting specific spending limits for gambling.
Additional recommendations involve increasing customer awareness about gambling-related harms and making support tools more accessible. Banks are also encouraged to use open banking—with customer consent—to gather insights from multiple accounts, enabling more personalized interventions.
Banks should particularly focus on supporting high-risk groups, such as young adults and individuals with a history of gambling-related harm or mental health challenges.
Promoting a Cultural Shift
The report calls on financial institutions to lead a cultural shift in how society views gambling-related harms, framing it as a complex issue influenced by various social and economic factors. Rather than placing sole responsibility on individuals, the report advocates a shared responsibility among financial services, government, and society to create safer environments, regulate harmful influences, and provide support tools for those affected.
The paper concludes by urging the government and ministers to include financial services in their plans for gambling reforms, emphasizing that the financial sector’s role in tackling gambling harm is essential. MMHPI adds that government-led initiatives to reduce gambling harm should go beyond these financial recommendations and include broader, comprehensive policies.