Protecting banking customers using gambling restrictions

RBI looked at several UK banks to gauge how the restrictions and precautions vary.

In 2018, Monzo became the first UK bank to put in a gambling block for those who declared that they needed extra support, with Starling Bank also launching this feature around the same time. Since then it has become common practice for banks to offer this service.

When searching for ‘bank name – gambling block’ each return directs the user to a page on their bank’s website designated to protect customers against dangerous gambling habits.

The general approach across all banks appears to be self-exclusion. This can be done by entering the bank’s app or calling up. It is a quick process that can have an immediate positive impact and does so for many customers. This has now become commonplace for banks to offer this service.

Modern problems requires modern solutions

Monzo has the refreshingly honest outlook that the duty to exclude relies almost entirely on the customer. On one hand, this could sound far away from the answer one is looking for. On the other, it is pleasing to know it comes from a position of lowering the veil of phoney corporate jargon.

What also helps Monzo stand out is its direct integration of this restriction into the banking app. For some banks, searching for this via the app leads to a redirection to the company’s website.

Now reading this you may have the same question I had while writing it – if the block is so easy to turn on and is entirely under the control of the customer, what is to stop them from simply turning it off again? If we take Starling Bank for example, when the gambling block is on it denies all transactions to any gambling-related company. But, when a customer goes to remove this block, they enter into a 48-hour payment delay period.

This means that customers cannot resume gambling immediately after removing the block and have to wait 48 hours. This is beneficial to remove the damage caused by an impulsive act of gambling, forcing customers to stick to the non-gambling lifestyle.

Starling added this feature following conversations with mental health and gambling charities and feedback from customers. The consensus from these conversations is that a 48-hour delay makes the block more effective. The delay is something that cannot be overridden by speaking to customer services or redownloading the Starling app. Customers are informed about the 48-hour delay when they initially deactivate gambling and betting payments.

Starling Bank goes to further lengths, when customers try to switch off the block, they will be provided with details of the National Gambling Helpline in case they need free advice or support on gambling. 

It is no surprise that Starling Bank and Monzo are some of the most vocal about gambling restrictions. As it is now viewed as a more modern issue, it is the more modern banking companies that have shown, what appears to be, a clearer understanding of the issues. Monzo makes a big point on its app of giving each transaction a tag to allow customers to keep an accurate track of what they spend their money on. This makes tracking gambling transactions even easier.

HSBC and TSB, among other banks, provide a list of questions for customers to find out whether in fact they do have cause for concern around problem gambling. This method does well to tailor the search to what could potentially be the specific needs of the customer.

Halifax includes personal stories from customers who have had gambling issues in the past to create a sense of relatability with whoever is reading the webpage and looking for support.

While every site has details or links to introduce a gambling block to the customer’s account, the overall quality and information varies on the sites. For some, there does appear to be an overreliance on Gamstop and GamCare. However, the services operate 24/7 and are accessible via social media platforms like Messenger and WhatsApp, making it more accessible than some banking services.

GamCare and GamStop are part of the TalkBanStop partnership, which also includes Gamban. TalkBanStop offers a combination of support, blocking software and self-exclusion to help people stop gambling.

GamStop is a UK-based self-exclusion programme designed to help individuals manage and prevent problem gambling. It allows users to voluntarily block themselves from accessing online gambling sites for a set period. When a user registers with GamStop, their details are shared with gambling operators that are part of the programme, meaning they cannot access their gambling accounts or create new ones on those sites.

GamStop prevents transactions to gambling sites that participate in the programme, reducing the risk of users overspending or engaging in harmful gambling behaviours. Banks may also use GamStop data to help identify and protect customers showing signs of gambling-related harm.

It is worth noting that some form of gambling transactions can still take place even when the block is on, for example purchasing lottery tickets or scratch cards from a newsagent or other outlet. But if you are looking to make a bet on a football game, your bank will block any transaction to a registered betting company.

Digital wallets are very well placed to block gambling transactions, with Google Pay, Apple Pay and Samsung Pay all cooperating with banks to restrict problematic gambling transactions from users.

How will gambling restrictions evolve?

From surveying these sites, one notable omission is the mention of AI. Following current trends, AI strikes me as something that could be a great tool to be used to understand a user’s banking and gambling habits to learn whether these transactions are harmful to the user.

In an interview with RBI earlier this year, Sibstar, a banking app designed to help families suffering from dementia, suggested that in the future its programme could be expanded to also assist those impacted by problem gambling. This power of attorney could be a positive move that banks will make in the future, finetuning the experience to cater to the specific needs of those with gambling addiction.

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