UK charity launches three-year programme to help banks combat gambling-related harm

The Money and Mental Health Policy Institute (MMHPI) has launched the Gambling Harms Action Lab, a three-year programme designed to help banks combat problem gambling.

The MMHPI, the charity that was founded and is chaired by UK financial expert Martin Lewis, said the scheme will aim to improve support and outcomes for those impacted by gambling-related harm.

Funded by a regulatory settlement approved by the Gambling Commission, the charity will engage five to seven banks to explore ways to improve support services over an 18-month period.

MMHPI said a focus on how banks can meet their requirements under the Financial Conduct Authority’s Consumer Duty would form the crux of the programme.

In turn, the charity will support banks develop and test tools and interventions aimed at “improving outcomes” for customers.

Those tools will be informed by the MMHPI’s research community of people with lived experience of mental health problems and gambling-related harms.

Nationwide is the first bank to sign up to the Gambling Harms Action Lab, with the MMHPI stating the firm’s participation marked its “commitment to progress”.

Alongside the programme, the MMHPI has released a report, ‘Shining a Light’ which explores the role of banks in tackling gambling-related harms.

The 28-page report laid out six key recommendations to banks, including using transaction data to identify at-risk customers.

Other notes include to “proactively communicate” with customers, refine blocking tools and implement customer opt-in spending limits.

Banks were also recommended to raise awareness of gambling-related harms among customers and test tools with a sample of users with lived experience to ratify the efficacy of any new efforts.

The report also called on the government to bring in the statutory levy on gambling operators and ensure banks are part of the plan to gambling reforms.

Data from the research also noted existing gambling blocking software is in place at 21 major banks in the UK, with 17 offering some kind of blocking tech.

Of those 17 banks, 11 offered a 48-hour cooling-off period once the block was removed, five used a 72-hour cooling-off period while one bank allowed its customers to have a 48-hour to 365-day cooling-off period.

Blocking technology is now widespread across financial services, although online-only banks Monzo and Starling led the way with the push in 2018.

Only one of the 21 banks tested failed to provide a link to the National Gambling Helping on their website and eight made a reference to the TalkBanStop programme.

Helen Undy, MMHPI CEO, said that while progress had been made by banks in recent years, there was still “a lot more to be done” to tackle gambling-related harms.

She said: “Gambling problems can cause catastrophic harms for those affected by them.

“Financial services are in a unique position to help, and it’s been great to see the progress made in recent years — particularly with the introductions of gambling blocking tools, which almost every current account provider now offers.

“The Gambling Harms Action Lab is an important opportunity for firms to help drive that progress, no matter how advanced they are or otherwise in this work.

Kathryn Townsend, head of customer vulnerability and accessibility at Nationwide, added: “Greater collaboration is essential if we are to truly tackle financial harm caused by excessive or problem gambling.

“It’s great to see the Money and Mental Health Policy Institute leading the charge on this with the launch of its Gambling Harms Action Lab.

“We are delighted to be the first financial services organisation to sign up to it and look forward to working alongside them and the wider industry to make a positive difference to people’s finances, relationships and mental health.”

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