With research from the Money and Mental Health Policy Institute (MMHPI) showing that half of all people in problem debt in England also have a mental health problem, bank staff will increasingly come across customers in these circumstances.

Managing money can be more stressful or challenging for those experiencing mental health issues. This has been taken into account by the financial services sector with newly published guidance which will help lenders to equip their staff to identify and respond appropriately to customers with mental health problems. This continues the work that lenders are doing to identify, understand and support their customers who might be in vulnerable circumstances.

Having the confidence to disclose personal information to your bank can be a daunting thought for most people. Developed by experts at MMHPI and the Money Advice Trust who have in-depth insight and experience of mental health problems, the guidance will play an important role in providing practical help to bank staff to get the best out of conversations with their customers when discussing money and debt issues.

Banks recognise that customers are individuals and that their mental health issues can affect them in different ways and at different times. Listening to the customer to understand how mental health problems affect them personally can ensure the relevant help and support processes are put in place.   

Whether it is aiding better money management (such as setting up regular payments for customers with short-term memory problems to pay their bills on time), raising awareness of customer borrowing and spending (such as through texts and alerts or tools to block impulsive spending) or, for those with significant debt problems, providing access to free and impartial debt advice from the debt charities, understanding how the problem affects the individual as well as the impact on them is key. 

Some common mental health symptoms can also affect the amount and type of work that the customer can do. Changes to income, including a move to accessing benefits, is likely to affect how much income they have and when it will be received. With this knowledge lenders can consider how they can provide forbearance and support to avoid increasing the stress of debt problems.

Where a customer's mental health condition has been identified, the guidance provides a useful synopsis of some of the main mental health problems. This outlines a spectrum of impact the condition could have on the individual's ability to manage money or ability to earn but recognises that the actual impact is best understood by engaging with the customer.

Banks recognise the positive impact that the right support can have for the welfare of their customers, and this new Guidance represents a further positive step in the journey for banks to help them identify, understand and support customers experiencing mental health problems.

Given the importance of this topic, UK Finance have launched the latest cohort our award winning academy to help firms identify, understand and support customers in vulnerable circumstances.  The Vulnerability Academy, in partnership with Money Advice Trust, will help firms improve their internal knowledge and understanding of the key issues facing their colleagues to ensure customers are treated fairly and appropriately. Learn more