Banks do not protect clients with mental health problems: research.

According to The Sun: Citizens are reminded about the dangers of improper use of PIN codes, which can lead to financial losses.

A study conducted by the Institute of Money and Mental Health Policy found that one in five people with mental disorders shares their PIN codes or banking details due to a need for financial assistance.

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However, this practice makes them vulnerable to fraud and abuse.

Noted financial expert Martin Lewis, founder of a charity, urges action to ensure safer and easier access to financial support.

According to a new report based on surveys by the Financial Conduct Authority for 2022, 42% of people with mental disorders wish to receive advice on everyday financial issues from a trusted person.

Symptoms of mental disorders, such as memory decline, impulsivity, and mood swings, significantly complicate financial management.

Risks and inadequate tools

The report highlights that financial institutions do not always provide adequate tools for obtaining support.

An analysis of the websites of 18 banks and credit unions showed that only seven of them offer cards for guardians.

These cards are issued to a trusted person to make purchases if the owner is unable to do so.

Only three out of 18 banks offered the possibility of notifications to third parties, allowing loved ones to receive notifications about the user’s account.

In addition, only one bank provides partial access and control over the account.

Among the alternatives are formal tools, such as Long-term Power of Attorney, but many people find them too complex to use.

The danger of fraud

The charity warns that the lack of adequate tools forces people with mental disorders to resort to risky decisions.

One study participant shared that he was 'demanded' to give money to someone he considered trustworthy.

Others expressed concerns about the possibility of losing their bank account due to violating contractual terms.

The institute calls on banks to provide ongoing access to a standard set of tools that simplify financial management along with loved ones.

They propose that all financial institutions implement guardian cards, notifications to third parties, and payment control for third parties.

Additionally, changes are needed in the Power of Attorney system for better service to individuals with mental health issues.

Martin Lewis, founder and head of the Institute of Money and Mental Health Policy, noted: 'People want to take responsibility for their finances. However, some of those who have mental health issues realize that sometimes they cannot be responsible…'

Helen Undy, executive director of the Institute of Money and Mental Health Policy, added: 'For many people with mental disorders, the support of loved ones is a decisive factor that allows them to stay afloat financially or end up in serious financial difficulty…'

What services do banking hubs offer?

BANKING hubs provide a wide range of services to fill the gap created by the closure of local branches.

They operate under the management of post offices, allowing customers to perform routine transactions such as deposits, withdrawals, and balance checks.

Each hub is equipped with private booths to discuss more complex banking issues with employees of the respective banks.

Employees of various banks take turns to provide customers with a wide range of banking services throughout the week.

Additionally, customers can receive advice and support on various financial products and services, including loans, mortgages, and savings accounts.

In a situation where financial difficulties become common, it is important to have access to adequate tools to support individuals with mental disorders. Improving the policies of financial institutions will provide the necessary protection and the ability to receive help from loved ones without the risk of falling into difficult situations. Providing such services is a step towards creating a safer financial environment for everyone.