There is no doubt that mental health and financial health are linked. People with mental health issues are three and a half times more likely to be in problem debt, according to the Money and Mental Health Policy Institute. Banks and other financial services institutions have become increasingly focused on supporting consumers who are affected by mental health issues both in response to regulatory requirements, such as Financial Conduct Authority (FCA) rules relating to 'treating customers fairly? and more broadly because it is the ?right thing to do?. The need for banks and financial services institutions to support consumers with mental health issues has been brought into even sharper focus as a result of the Covid-19 pandemic, where many individuals have been affected by redundancy, loss of income and ill-health and require additional support that they did not previously need.

The report ?Creating a Culture of Support in the Financial Services Industry?, published by Pinsent Masons, has been produced with input from a number of key stakeholders in the financial services industry to explore this important topic in more detail.

As part of the report we conducted a consumer survey to obtain insight into the role individuals see their bank playing in helping to support them if they are affected by a mental health condition. Our findings show that consumers are very much in favour of banks taking a proactive approach in helping their customers to manage their money. Around two-thirds said that they would find it helpful for their bank to put in place measures such as spending controls or notifying the customer if an abnormal spending pattern is identified, in cases where the customer had previously alerted the bank to a mental health conditions.

This is interesting as it reflects, at a consumer level, the approach taken by the FCA to the fair treatment of vulnerable customers. As a general principle the FCA's approach is that consumers should have control over their choices and decisions, but that where consumers are identified as ?vulnerable? (due to a mental health issue or otherwise), financial services providers need to provide those consumers with extra support.

Significant progress has already been made by the industry to support consumers with mental health issues. This includes innovative use of technology and data analytics by banks and financial services institutions, enabling them, , among other things, to identify customers that may require additional support, assess affordability of credit and track abnormal spending patterns. Fintechs can also offer innovative solutions to give consumers more control over their finances, such as money management apps and benefits calculators which can help consumers avoid problem debt. However, to enable financial services businesses to take advantage of this new technology and adopt a more proactive approach, it is critical that the Information Commissioners Office (ICO) provides further clarity on the use of vulnerable customers? personal data for these purposes.

The commitment of the financial services industry to driving change, including the regulatory impetus from the FCA, means that there is a huge opportunity to collaborate, embrace technology and offer even better solutions for consumers in the future.

For guidance on how to support individuals with mental health problems please refer to the UK Finance Mental Health Toolkit.