IMMEDIATE RELEASE
People with mental health problems back banks using financial data to offer earlier support
4 November 2026
New research shows that banks can play an important role in helping customers get support with their finances and mental health, by using financial data to spot signs people may be struggling and reaching out with support or signposting.
The report, which is published by the Money and Mental Health Policy Institute, suggests many people with mental health problems would welcome their bank using financial data this way – provided there are appropriate safeguards in place to get their consent and protect their privacy.
One in four people experience a mental health problem each year, and Money and Mental Health’s research shows that this group is significantly more likely to experience financial difficulty. For example, the charity’s analysis shows that people with mental health problems are three times as likely to currently be behind on some or all household bills compared to those without such conditions (1).
Common symptoms of poor mental health, such as difficulties communicating and reduced concentration, can make it harder for people to reach out for help when they are struggling with their finances. Only a small minority of people with mental health problems (14%) have shared their condition with their bank, meaning firms often don’t know how their customers might be affected when they are in poor health (2).
However, banks have an opportunity to proactively recognise signs that someone is struggling with financial problems which may reflect poor mental health. That is because of the unique insight banks have into people’s finances through financial transaction data, which is generated through purchases, deposits and withdrawals from bank accounts.
Banks already use this data to spot signs that customers might have fallen victim to fraud and to reach out with offers of help. But Money and Mental Health’s research suggests banks could go further by analysing this data to recognise signs that someone may be experiencing financial problems that reflect poor mental health – such as overspending, unusual increases in use of credit and missing regular payments such as Direct Debits – and intervening to help people get support.
The research also suggests many people with mental health problems would welcome banks using their data in this way, provided the right protections and processes are in place. In-depth surveys of 517 people with mental health problems carried out by Money and Mental Health (3) showed:
- A clear majority (63%) of participants said they would support banks using financial data in this way, saying it would make it easier for people to get help – especially those who would not otherwise get in touch with their bank – and prevent harm from escalating.
“I would feel better knowing that my bank was checking for [signs of financial difficulty as a result of a mental health problem], in the same way I am glad they check for scams. In this technology-run age, the more help we can get the better.” Expert by experience
- The research also shows the kinds of action people would like banks to take if they spot signs someone might be struggling. Four out of five (80%) participants said they would welcome banks getting in touch to share information about the support they can offer to help with financial difficulty. Around two thirds said they would support banks providing signposting externally to mental health support (64%) or to financial support such as debt advice (69%).
- For many respondents, their support was conditional on having certain safeguards in place, including the choice to opt out and having strong regulations in place around what banks can do with the insights generated by their data. People also highlighted the importance of banks providing meaningful offers of support if they reach out.
- However, around one in five people said they oppose banks analysing their transaction data in this way. People in this group expressed concerns this kind of data analysis would not make any difference in helping them get support, or it would feel controlling and like surveillance.
In light of these opportunities and concerns, Money and Mental Health has set out recommendations for banks and regulators on how financial data can be used to support customers struggling with their mental health and finances, while prioritising their consent, control and privacy.
Key recommendations include:
- Banks should let customers choose whether they would like their data to be used to recognise signs they might be struggling with their finances during a period of poor mental health. That could include opting in or opting out depending on the level of analysis or the type of support offered. This choice should be clearly communicated to customers, with transparency about how data is used.
- Banks should also develop a suite of meaningful, targeted interventions that are supported by people with mental health problems before they are put into action at scale. These could include light-touch check-in messages offering general support, signposting to external organisations or enabling customers to set up temporary restrictions on certain types of spending.
- The Financial Conduct Authority (FCA) – the banking regulator – should guide firms on how best to put systems like this in place. It should also clarify how the Consumer Duty – which places an onus on financial services providers to ensure good consumer outcomes and prevent foreseeable harm – applies to banks using financial transaction data analysis to support customers with money and mental health problems.
Reflecting on the research, Conor D’Arcy, Deputy Chief Executive of the Money and Mental Health Policy Institute, said: “Millions of us have struggled with our mental health and our money. Getting the right support can be life-changing, but asking for help can feel daunting. That’s why there’s a massive opportunity for banks to use data they already hold to recognise when a customer is having a tough time and get in touch – just as they do when our data suggests we might have been a victim of fraud.
“To be clear, this isn’t about banks diagnosing mental health problems. It’s about recognising the warning signs that someone might be struggling, and reaching out with helpful information about what support the bank can offer, or other organisations who can help.
“Our research shows strong support for this approach from people with mental health problems, but only if it’s done properly. That means protecting privacy and making sure customers can control how and when their data is used.
“This approach could make a huge difference in enabling people to get support when they most need it. But it could also benefit banks by building trust and tackling financial problems before they become more complex and harder to address.”
This independent research is funded by Lloyds Banking Group, but Money and Mental Health retain full editorial control over it. Alongside this research, Money and Mental Health continues to work with Lloyds Banking Group to strengthen the support available to customers in vulnerable circumstances.
Jane Rodrick, Head of Group Customer Vulnerability at Lloyds Banking Group, said:
“Earlier support can play an important role in helping people maintain their financial resilience. This research highlights the potential opportunity to use data responsibly to recognise when someone may be experiencing financial difficulty and offer relevant support earlier, while keeping choice and control firmly with the customer.”
Case study – how this could work:
Sarah has longstanding mental health problems and struggles with impulsivity when she is unwell. She has opted into allowing her bank to get in touch if they notice unusual spending patterns in her financial data, as she does not always recognise when her mental health is affecting her financial behaviour.
Her bank notices from her financial data that there has been a significant increase in her spending, resulting in her not being able to pay her regular energy bill due to not having enough money in her account.
The bank reaches out with a gentle in-app message saying it has noticed some changes in her spending, and checking in to see if she is ok. It also shares information on a spending block she can use to block gambling payments, and some signposting to Citizens Advice for help with managing bills.
This enables Sarah to limit her spending, and to contact her energy supplier to arrange an affordable payment plan, which helps her avoid more serious financial problems. More broadly, it helps her gain an insight into how her spending habits are affected by her mental health, which enables her to recognise when these patterns reoccur and to ask for help.
ENDS
Contact:
For all media enquiries, please contact Brian Semple, Head of External Affairs, on 07935 216804 or [email protected]
Notes to Editors
- Money and Mental Health analysis of Understanding Society: the UK Household Longitudinal Study. Wave 15.
- Online survey of 5,001 people with experience of mental health problems and 1,000 people without mental health problems, conducted by Opinium, 25 June – 22 July 2021.
- Surveys carried out in January and April 2026.
About the Money and Mental Health Policy Institute
The Money and Mental Health Policy Institute is an independent charity set up by Martin Lewis, and committed to breaking the link between financial difficulty and mental health problems. We conduct research, develop practical policy solutions and work in partnership with both those providing services and those using them to find what really works. www.moneyandmentalhealth.org.
About Lloyds Banking Group
Lloyds Banking Group is the largest UK retail and commercial financial services provider. Our main business activities include retail and commercial banking, general insurance and long-term savings, provided through a range of trusted, household brands.
We have 28 million customers, support one million businesses, and have a presence in nearly every community. Our purpose is Helping Britain Prosper.
For more than 320 years, we have served households and businesses across the UK. Today, we are transforming how we do that. We have invested more than £4bn in our digital transformation, and we’re just getting started. That means building smarter, more resilient tech, expanding our use of AI, and creating seamless experiences for a digital-first Britain.