Losing bank cards, frequent PIN resets and reporting fraud could be early signs of cognitive decline, a groundbreaking new study has demonstrated.
It is the first evidence that routine banking data could provide clues that someone is experiencing cognitive decline – up to 10 years before formal intervention.
The team behind the findings say that early detection of dementia through financial behaviour could better support vulnerable people.
The research, which was led by Professor John Gathergood from the University of Nottingham’s School of Economics and David Leake at Lloyds Banking Group, identified that people with cognitive decline exhibit small but significant changes in their banking behaviour.
These include spending less on travel and hobbies like gardening, fewer online banking logins per month, increased household bills, and being more likely to report fraud, lose cards, and request PIN resets.
These changes occur a number of years before individuals are formally identified as lacking financial capacity.
The research team examined anonymised banking records from more than 66,000 people, comparing data from 16,742 individuals who were registered for power of attorney (PoA) due to a loss of financial capacity with a control group of 50,226 matched individuals without a loss of financial capacity.
Professor Gathergood said: “These patterns provide the first large-scale evidence that behavioural data held by financial institutions can reveal the early emergence of cognitive decline.
“It is a powerful demonstration of how anonymised banking data can be used responsibly to protect the most vulnerable members of society.”
The analysis of banking behaviour indicates that dementia could lead to fewer activities outside of the home alongside more home-based spending. Other changes included financial mistakes and susceptibility to fraud.
Professor Gathergood said: “As a society, we need to better support people at risk of losing financial capacity – long before the signs become obvious to friends or family. Early detection through financial behaviour may be a key part of that solution.
“By better understanding behavioural markers of declining capacity, banks can explore how to strengthen safeguards for customers.”
Read more in JAMA Network Open.
