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Online shopping can be an indication of a mental disorder
Can our online banking transactions be used to predict disruptions to our psychological health? Researchers from an influential charity have used online banking data to examine the relationship between psychological illness and emerging personal financial crises.
The experts at the Money and Mental Health Policy Institute found that there is a correlation between psychological and financial well-being. The charity researchers have summarized the results of their research on mental disorders and money issues in a report.
How do mental illnesses affect our online banking behavior? Is it possible that we can identify future mental illnesses faster by using apps to monitor our online banking? (Image: VRD / fotolia.com) Researchers call for the development of apps for monitoring online banking
Most people probably know so-called fitness trackers. Among other things, these devices include our steps and are intended to motivate more activity, explain the scientists. Money and Mental Health Policy Institute officials believe that apps could also be developed that closely monitor when and how much money we spend. Such devices could then send out warning signals if a morbid pattern is detected.
Mentally ill people find it difficult to make sound financial decisions
About a quarter of the UK population will experience a psychiatric problem during their lifetime, and there are clear links between psychological and financial well-being, say the experts. More than nine out of ten people with mental health problems declare that they spend too much money or have problems making sound financial decisions. The scientists came to this conclusion after a survey of around 5,500 people.
Unreasonable pattern of spending discovered in many mentally ill
Almost three-quarters of those affected said that they have unpaid bills piled up, the doctors report. More than half of the participants were even forced to borrow. Many people with mental health problems report an unreasonable pattern of spending, the authors add. These include, for example, overspending during manic episodes and the purchase of unaffordable items for yourself or other people. So the sufferers want their social status or self-esteem to increase.
The effects of money and mental health lead to a vicious cycle
Poor mental health leads to poor budgeting and decision-making, while the resulting financial hardship makes the psychological situation even worse, explain the physicians. So there is a kind of vicious circle.
Maintaining financial stability is important to mental health
One interviewee explained that if he feels unwell, he loses his sense of reality, so to speak. The person then lives the life of another person. Also, the money spent seems to belong to another person, explain the experts. Another subject said that paying bills and maintaining financial stability was crucial to preventing a deterioration of his mental health.
Apps could prevent the risk of a financial crisis occurring in those affected
Tools should be developed that are able to analyze large volumes of banking transactions. This could lead to spending monitoring applications being able to detect certain patterns, say the authors. These can then be used so that advice and support prevent the risk of a financial crisis occurring in those affected.
Further research with larger data volumes is urgently needed
The charity calls for a more detailed analysis of the bank details of 50,000 volunteers who provide their transactional data for two to three years in addition to their biographical and demographic information. This would allow researchers to better analyze the financial situation of different groups. The so-called 100,000 genome project could also be used to identify links between genetic mutations and diseases, the specialists explain.
Apps would need to have full access to consumer online banking data
To monitor spending, an app would need to have access to consumers' online banking data, the researchers explain. Personal involvement in such an app is crucial. When people sign up for this service, they should not view the analysis as a kind of invasion of privacy, but a means to detect behavioral problems. So far, however, British banks do not allow their customers to share their data with third parties. (As)