Bridging the Gap: The Role of Banks and Fintechs in Averting a Mental Health Crisis
Countries are experiencing the worst cost-of-living squeeze in a generation, with skyrocketing energy, food and fuel prices creating financial hardship for millions of people in the UK and across Europe.
With inflation at levels not seen since the 1980s bearing down on incomes, the number of UK households living from payslip to payslip is expected to double to 7 million by 2024, according to the National Institute of Economic and Social Research1.
A less explored – but equally worrying -- dimension of this crisis relates to its impact on the nation’s mental health. According to research by The Money and Mental Health Policy Institute, people experiencing mental health problems are three and a half times more likely to be in problem debt than those without.
In Europe, recent research2 shows that one in five people are drawing from their savings because of the crisis. Meanwhile, debt charities have reported a rise in new clients in recent months.
For banking institutions, the implications of this mental health emergency will be felt far and wide: from more customers needing support managing their money to their own workers and partners grappling with financial insecurity and related stress.
The good news is that the industry is better placed than ever to respond. Not only are they better capitalised compared with the 2008 global financial crisis, but they have a toolbox of digital solutions at their disposal to respond and innovate quickly.
Digital now provides insights and solutions that were simply not available the last time we faced a cost-of-living crisis. This is digital’s moment to show just how much it has transformed financial services.
A&M’s Financial Services Industry team look at digital tools banks can implement to support customers manage their money and offer tailored options when they most need help.
[2] https://www.moreincommon.com/our-work/navigating-the-cost-of-living-crisis/
