Francesca Smith, Senior Research Officer, Money and Mental Health; Becca Stacey, former Senior Research Officer, Money and Mental Health

31 July 2025

This research explores the experiences of people with mental health problems from minoritised ethnic groups when using financial services such as banks, building societies and credit unions. 

Taking a participatory research approach, we developed the report in collaboration with 22 experts by experience who all belong to minoritised ethnic groups and have personally experienced a mental health problem.

We also commissioned a survey of over 2,000 people, to assess differences in experiences and outcomes for people who self-identified as belonging to a minoritised ethnic group and having a mental health problem.

• Nearly half of people with mental health problems from Asian or Black ethnic groups felt that they received a lower quality service from their financial provider because of their ethnicity.
• Participants shared how being racially discriminated against (or worrying that was the case) for instance where they were refused credit, undermined trust and contributed to increased anxiety when dealing with financial services firms. 
• It is not a person’s ethnicity or mental health condition that inherently places them at risk of financial exclusion, but systems that are designed without equity for these groups in mind.
• These inequitable systems are having a hugely detrimental impact on people’s financial wellbeing — for example, by damaging their confidence in managing their finances, and making them feel less financially secure.
• These are also having a serious psychological impact, with more than half of those with mental health problems from minoritised ethnic groups reporting that poor experiences with financial services took a toll on their mental health.

• Carry out more analysis of customer data on ethnicity and mental health, to gain a better understanding of the outcomes and risk of harm that minoritised ethnic groups face using financial services. This is in line with the Consumer Duty’s requirement for firms to deliver good outcomes for all consumers.
• Be transparent and proactive in explaining to customers why they are unwilling to approve an application for credit. This will help to build trust and counteract fears that someone’s mental health or ethnicity was a factor in the decision.
• Make services and products more accessible to people with mental health problems from minoritised ethnic groups — for example, by offering training staff to better understand how people from different ethnicities talk about their mental and financial health, and offering a wide range of reasonable adjustments to meet support needs.

Read the report here.

Read the methodology here.