Sibstar CEO Urges Banks to Use Transaction Data to Protect Mentally Vulnerable Customers

New research reveals that 65% of individuals with mental health issues believe banks should use transaction data to identify financial warning signs earlier. This finding places significant pressure on financial institutions to evolve their duty of care, moving beyond reactive support to proactive, data-led interventions that protect vulnerable customers without compromising their personal independence.

What was announced

The Money & Mental Health Policy Institute has released a report based on a survey of more than 600 individuals with lived experience of mental health challenges. The findings highlight a significant gap between the data banks currently hold and the preventative actions they take. According to the research, 88% of participants felt their mental health had a direct impact on their financial management or spending habits, yet many felt these shifts went unnoticed by their providers.

The report suggests that transaction patterns often serve as a leading indicator of a mental health crisis. With 65% of respondents indicating that their banks could identify these warning signs through data analysis, the focus has shifted to how financial institutions can intervene before problems escalate into severe debt or financial distress. Jayne Sibley, CEO & Co-Founder of Sibstar, noted that while banks are uniquely positioned to see these signs long before a customer asks for help, the current system often places the burden of recognition on the vulnerable individuals or their families.

The findings also address the delicate balance between protection and autonomy. While there is a clear demand for earlier intervention, the research emphasizes that support must be collaborative. Financial institutions are encouraged to listen to customer needs and provide tools that offer confidence in money management while maintaining the user's financial independence, rather than imposing restrictive controls.

"Banks can often see the warning signs of financial difficulty long before someone asks for help. Yet too often, the burden falls on financially vulnerable individuals and their loved ones to recognise when something is wrong. With 65% saying their transactions could reveal how their mental health affects their finances, banks have the opportunity to use the transaction data available to them and step in earlier, before problems escalate."

Jayne Sibley, CEO & Co-Founder of Sibstar

The companies involved

Sibstar is a UK-based fintech company specifically designed to support financially vulnerable individuals, particularly those living with cognitive impairments or mental health conditions. The company provides specialized debit cards and app-based management tools that allow families and caregivers to help manage spending while the user retains a level of financial freedom. Sibstar occupies a niche in the market by bridging the gap between traditional banking services and the complex needs of the "vulnerable customer" demographic, a segment that has come under increased regulatory scrutiny in recent years.

The Money & Mental Health Policy Institute, which conducted the research, is a leading think tank dedicated to breaking the link between financial difficulty and mental health problems. Their work often informs policy and best practices for the UK financial services sector, particularly in relation to the Financial Conduct Authority’s (FCA) Consumer Duty requirements, which mandate that firms must act to deliver good outcomes for all customers, including those with characteristics of vulnerability.

What FF News has reported before

FF News has followed Sibstar’s growth and its increasing influence on the financial inclusion landscape. In late 2026, Sibstar CEO Calls for Greater Financial Inclusion and Female Founder Support in Autumn Budget, highlighting the need for systemic changes to support both vulnerable users and the entrepreneurs serving them. The company has also secured significant institutional partnerships, as seen when Santander UK Partners with Sibstar to Protect Financially Vulnerable Customers and through a similar collaboration where Sibstar and Cater Allen Private Bank Partner to Enhance Inclusive Banking for Vulnerable Customers. To fuel this expansion, the firm previously engaged its community directly, as Sibstar Launches Crowdfunding Campaign on Crowdcube to Boost Financial Inclusion in early 2025.

What this means

This research marks a turning point in the conversation around "vulnerability" in banking. For years, the industry has treated mental health as a disclosure-based issue, where the customer must first tell the bank they are struggling. These findings suggest the market is moving toward an expectation of algorithmic responsibility. If the data exists to prevent financial ruin, legacy banks and fintechs alike will face increasing pressure to explain why they didn't act. The challenge for the sector lies in the technical and ethical implementation: how to build automated triggers that are sensitive enough to be useful, but not so intrusive that they infringe on a customer’s right to privacy and self-determination.