HSBC to introduce ATM-style restrictions on gambling by 2020
Banking and financial services giant working on spending thresholds for account customers
UK banking giant HSBC will look to introduce daily restrictions on online gambling-related transactions by 2020.
In a tweet, the bank confirmed it will introduce an algorithm into its online and mobile banking platform to include ATM-style limits as part of its technical updates in November/December software release.
Hi Tony, speculative transaction restrictions is on our roadmap already, we're planning to release this algorithm during upcoming November/December builds. ^Mill
— HSBC UK (@HSBC_UK) November 4, 2019
The bank was responding to safer gambling campaigner Tony Franklin who called on British banks to be the first to implement daily default spending limits for gambling transactions similar to those being used on ATMs.
A £300 daily spend limit equates to £9125 a month. Very few in UK have this disposable to spend gambling. It will not impact the majority but for those who experience escalating gambling spend it will act as a vital brake and opportunity for early intervention before massive harm
— Tony Franklin (@GamblingHurts) November 4, 2019
In an op-ed for EGR this week, Franklin said such a limit would either encourage change in behaviour when they hit a default limit or if forced to ring the bank to query.
Such a call would also be an opportunity to assess for early intervention and signpost to help if appropriate.
HSBC declined to provide further detail on the precise spending limits involved for gambling but said further details would follow “in due course”.
UK challenger banks Starling and Monzo were among the first in the UK to provide their customers with the ability to restrict of limit gambling transactions made on their respective accounts.
In December 2018, Barclays became the first UK high street bank to allow customers to ‘switch-off’ spending in five different merchant categories, including gambling.
Last month, Natwest launched its own in-branch pilot scheme with charity GamCare, in which it uses private branch space to facilitate counselling sessions for those affected by problem gambling.
As part of the pilot, consultations will be taking place in thirteen branches in London and the South East and Midlands and East.
In addition, NatWest has introduced its own gambling block on credit cards on its mobile banking app, allowing customers to block all transactions linked to gambling.
Gamban founder Matt Zarb-Cousin said gambling transaction blocking should form one part of a “multi-layered” approach to addressing gambling-related harm, utilising resources such as Gamban and self-exclusion schemes such as Gamstop.
“We have been engaging with UK finance on this, so it is welcome that HSBC are planning to introduce a transaction block and we hope that like Monzo’s it has a cooling off period built into it so it can’t simply be switched off immediately,” Zarb-Cousin added.