Banking Insights Indicate Early Signs of Cognitive Decline in Seniors

A groundbreaking study has revealed that routine banking behaviors may serve as early indicators of cognitive decline in older adults, potentially identifying issues up to ten years prior to formal diagnosis or intervention.

Published in JAMA Network Open, this research was conducted by experts from the University of Nottingham and Lloyds Banking Group. The team analyzed anonymized banking information from over 66,000 individuals, focusing on 16,742 individuals who had registered for power of attorney (PoA) due to diminished financial capacity, compared to a control group of 50,226 individuals without such reported issues.

The findings indicate that subtle yet significant changes in financial behavior, such as a decrease in spending on travel and leisure activities, an uptick in household expenses, fewer online banking logins, and an increased frequency of requests to reset personal identification numbers (PINs), can occur several years before formal recognition of financial incapacity.

According to the researchers, these behavioral patterns highlight the potential of financial data held by banks to detect early signs of cognitive decline, thereby offering a responsible means to safeguard vulnerable populations.

Key findings from the study include:

• A decrease of 9.6 percentage points in travel spending five years before PoA registration.
• A reduction of 7.9 percentage points in expenditures on hobbies such as gardening.
• A drop of one fewer online banking login per month.
• An increase in reports of fraud, loss of cards, and requests for PIN resets.

The study suggests that early stages of Alzheimer's disease and similar dementias may lead to a decline in engagement with self-care and outdoor activities, resulting in a shift towards increased spending on home-based services. Furthermore, the decline in financial activity was accompanied by an uptick in financial mistakes and susceptibility to fraud.

Researchers emphasize the need for further exploration into how financial data can be integrated with health and social care frameworks, ensuring strict adherence to data privacy regulations. The implications of these findings extend to public awareness regarding PoA registration, which remains relatively low in the UK amidst rising concerns about financial exploitation related to dementia.

Experts advocate for improved support systems for individuals at risk of losing financial capacity well before such signs become apparent to family members or friends. Early detection through financial behavior could be vital in addressing these issues. By enhancing understanding of behavioral indicators associated with declining capacity, financial institutions may be able to implement more robust safeguards for their clientele.