Banks have the opportunity to support customers suffering from gambling harm through payments data and careful messaging.
The Money and Mental Health Policy Institute has shared how banks can play a vital role in helping customers with gambling problems.
In a blog published on October 7, the organisation said financial difficulties are often one of the first signs of gambling harm. Unusual spending, persistent debt, missed bills and being regularly in overdraft can all signal someone is struggling.
Leia Clifton, Senior Research Officer at Money and Mental Health, wrote: “As the provider of our everyday financial services, banks can spot warning signs that customers may be struggling and require timely support.”
Clifton said one way banks can help is through messaging. “Just as we look around and see gambling adverts everywhere, we should look around and see help and support at every turn – banks are a part of this picture,” she wrote.
However, the Money and Mental Health Policy Institute warned banks must take care when reaching out. Many people facing gambling issues may also be dealing with mental health problems.
Acknowledging this, the organisation shared six recommendations to help banks improve how they communicate with customers.
The first is that messages should come from a place of understanding rather than judgement. Research found even well-meaning messages about control or gambling responsibly can sometimes make people feel they are out of control or irresponsible.
The second is patience. Recognising a problem is a “huge step, which might not happen immediately, but takes time and repeated offers of support, in different ways from multiple sources.”
Thirdly, messaging should be adapted to each customer’s situation.
Consistency is another key point, as banks now reach customers through several platforms. Messages should align across all of them to avoid confusion.
The fifth recommendation is to work with people who have lived experience. The organisation said “messages should be reviewed and refined with input from people with lived experience of gambling and gambling harms.”
Finally, banks should regularly review their communications, as suitable language and best practices change over time.
Power in payments
While this latest blog focused on messaging and communication, a previous post from the Money and Mental Health Policy Institute offered banks advice on using payments data to spot gambling problems.
It explained no two people experience gambling harm in the same way, but certain spending patterns can indicate risk.
Recommendations included looking at how much of a person’s income or disposable income is spent on gambling, the number of gambling transactions and whether gambling occurs across multiple operators.
Patterns of when gambling happens can also be revealing. Changes in how often or how much someone spends, or any escalation in activity, may indicate growing harm.
Solving different gambling problems
Several UK banks, including HSBC, Monzo, Nationwide, Starling Bank and Virgin Money, are now working to improve how they support customers at risk of gambling harm. They are doing this as part of the Gambling Harms Action Lab.
However, the UK is not alone in using payments to solve issues in gambling. Earlier this year, Poland raised concerns to the European Union about loopholes which allow payments to be processed for unlicensed gambling operators. These practices, it warned, threaten national economies.
This saw a new task force created, bringing together regulators, banks and the state gambling monopoly to block payment flows feeding the illegal market.
“The target is clear,” says Justyna Grusza-Głębicka, a legal expert on Polish gambling laws. “It is the estimated 41% of the market that remains outside the state’s regulatory reach.”
