Only 14% of consumers with a mental health problem have told their financial services firm

New research by the Money and Mental Health Policy Institute has found that only 1 in 7 consumers (14%) with a mental health problem have told their financial services firm about their condition.

Money and Mental Health’s research shows that getting the right support from a financial services firm to disclose a mental health problem and after a disclosure can make a huge difference in improving people’s experiences of using financial services and reducing unnecessary distress. This means that millions of vulnerable customers could be missing out on available support from firms in the middle of the cost of living crisis. That includes adjustments firms can offer which make it significantly easier for people with mental health problems to access and use financial services – such as being able to choose a preferred channel of communication.

The polling also shows that 28% of people with mental health problems across the UK didn’t think that disclosing to an essential services firm would make a difference to the support they received, and 12% felt that if they shared details of their mental health problem they would not be believed.

These factors are helping to drive the low rates of disclosure to financial services firms. Other barriers include a lack of support and encouragement from firms to discuss vulnerability; a fear of being cut off by firms; and a lack of clear and accessible ways to disclose mental health problems.

The new guides published today have been informed by the experiences of people with mental health problems, regulatory guidance and research. They offer practical tips on how firms can help more consumers disclose a mental health problem, and are also designed to help firms meet the regulatory expectations around supporting vulnerable customers set out by the FCA in its new Consumer Duty.

Money and Mental Health and the Money Advice Trust are calling for firms to be more proactive in encouraging consumers to disclose and ensure that the needs of customers are acted upon following a disclosure being made. In particular, firms should:

• Create and routinely offer opportunities for disclosure from onboarding onwards, and signal to consumers that disclosures are welcome during routine points of contact.
• Be clear from the outset on the support they can give in response to disclosure, and ensure that the agreed level of support is delivered.
• Support initiatives to help consumers to disclose to multiple firms via a single platform, to avoid consumers having to repeatedly disclose sensitive information about their mental health and make it easier for them to get the help they need across the board.
• Be transparent with consumers about what information will be recorded about them and how their data will be used, and obtain consent for this where appropriate.

Helen Undy, Chief Executive of the Money and Mental Health Policy Institute, said “Disclosing to your financial services firm when you have a mental health problem can be an incredibly daunting and difficult step to take. When someone chooses to share, it represents a huge moment of trust for the individual – but it also creates a critical opportunity for firms to better understand and meet their customers’ needs.”

“With only a small minority of customers with mental health problems currently disclosing, there are potentially millions of vulnerable people losing out on support on offer from firms. This is particularly alarming given people with mental health problems are being disproportionately hit by the cost of living crisis, and need this support more than ever.”

“So far the onus has been on the individual consumer to disclose their mental health problem – but we want that to change. Firms should be proactive from the get-go – and increase trust amongst consumers by making sure disclosures are encouraged, handled correctly and lead to tangible action.”

Chris Fitch, co-author, Vulnerability Lead, Money Advice Trust, and Research Fellow, Personal Finance Research Centre, University of Bristol, said “On paper, disclosure of a mental health problem is simple: a customer shares information, and firms then respond. However, in real-life, disclosures are rarely straightforward. Firms therefore need to understand how to encourage disclosures, respond effectively to them, and record the information to inform action and support.”

“Our new guides draw on research with consumers and firms to establish how to achieve this in practice. And critically, this new research identifies what may separate a ‘good’ disclosure from a poorer experience and outcome.”

“Firms have to make it as easy for consumers to disclose their support needs as it is for them to update a mobile number. Without doing this, firms will lose out on vital insights, while consumers lose out on available support.”