There has been growing pressure on the financial sector of the UK market, especially on the regulation of some of the gambling policies that disadvantage clients. This anti-gambling campaign specifically calls the banking and financial service providers to adopt measures that can help regular gamblers control their spending. The largest bank in Europe HSBC together with responsible gambling charities like Gamcare and GambleAware were at the forefront in making sure these measures are strictly revised and adhered to.
HSBC Bank has adopted a self-exclusive measure where it shall provide to its more than 14.5 million customers with the option to restrict their spending on betting and casino related activities. More measures include blocking gambling transactions on their bank accounts or credit cards which has also been adopted by other financial institutions like Monzo, Starling, and Barclays Bank. Other e-wallet financial institutions like PayPal were among those who promised to tighten up its control to save the huge amounts of money the customers spend on gambling.
Blocking of Transactions to Prevent Compulsive Gambling
Barclays Bank was the first financial institution to initiate these measures of blocking gambling transactions thereby allowing the customer to control and block particular payments using the mobile application. The app, which was developed with the help of Charity Money Advice Trust on 11th December has a new feature that will allow them to choose from a category of the retailers.
This step was made to support the national self-exclusion scheme because there are sites for web gambling that accept Gamstop registered customers still available. Once the retailer that the client has self-excluded from is turned off in the app, it will automatically prevent and decline transactions that the client may attempt. The other retailer category which the clients wanted to have control include:
- Restaurants, pubs, and bars;
- Petrol and Diesel;
- Premium rate websites and phone lines.
The move by the Barclays Bank has made other large financial institutions to follow suit as a regulatory measure for all. Big institutions like RBS, Lloyds and Santander which were among the big banks that joined Barclays making it spread over the UK market. HSBC is one of the largest financial institutions in the whole of the European market has been able to offer it’s over 14.5 million customers an option to self-exclude from all gambling transactions or similarly block all transactions on their accounts or credit cards. This measure can only be reversed after a period of 24 hours.
Equally, the UK Gambling Commission also launched consultations for a period of twelve weeks seeking input from the public and industry stakeholders on whether gambling online with credit cards should be totally banned or restricted to some extent. The regulator who is still working on the extensive report may as well believe that the decision made by the commission member will definitely have an impact on the future of the e-wallet.
Insufficiency with E-wallets
The e-wallet has faced tough times due to the increased syndrome of compulsive gambling or simply gambling addiction. The syndrome has left most of the e-wallet accounts empty with insufficient funds due to uncontrolled gambling behavior. While banks are blocking gambling transactions, most cash cannot be saved in the e-wallet account just because the client is a habitual gambler who never misses to try out the luck in the casino industry.
Most clients have been unable to budget properly for their funds as they find themselves overspending on gambling-related activities leaving out more important aspects that need to be attended to. Recently the giant online payment firm PayPal was identified by the Guardian who revealed that it has been letting gamblers spend up to € 150,000 a day on credit leaving them with little or nothing in their e-wallet accounts.
This measure by the HSBC has been applauded by many as it has greatly helped in the control of the client’s finances. The measure has provided clients with enough time to consider whether they should continue to gamble or limit their spending on casino gaming and betting related activities. Great thanks to the HSBC officials for their continuing support and the way they have shown how committed they are to helping customers manage their finances.