Banking regulation and the design of financial technology have been identified as key factors enabling economic abuse, according to new academic research that urges UK banks to reassess their technology estates and operating models.
According to Finextra, the report, Designing Out Economic Abuse in the UK Banking Industry: A Call To Action, was produced by researchers at Northumbria University and examines how everyday banking products, services and digital tools can be deliberately exploited by abusive partners or former partners.
Economic abuse is legally recognised in England and Wales under the Domestic Abuse Act 2021 and refers to behaviours that restrict, exploit or sabotage a victim’s access to money, housing, transport and technology.
The research highlights how joint accounts, online banking features and transaction processes can be weaponised to exert control, often leaving victim-survivors financially trapped. Rather than focusing solely on malicious intent, the study argues that certain aspects of banking infrastructure unintentionally enable harm through design choices that prioritise speed, convenience and automation.
The findings are based on a participatory design methodology that brought together six survivors of economic abuse and six banking professionals from five major UK banks. This approach allowed researchers to explore real-world experiences from both customers and practitioners, uncovering gaps between existing bank responses and the lived realities of abuse.
Dr Clare Wiper, assistant professor in criminology at Northumbria University’s School of Humanities and Social Sciences, said: “Many current banking responses to economic abuse are largely reactive – taking place after harm has occurred. Our participants have shown that banks have significant opportunities to be more proactive, and that this isn’t always about massive investment or revolutionary technology – sometimes it’s about asking one additional question during joint account opening or ensuring that digital banking features are designed with victim-survivor safety in mind.”
Victims involved in the study identified several priority interventions that could materially reduce harm. These include enhanced training for frontline banking staff to help them recognise signs of economic abuse, as well as changes to account structures and terms and conditions. One proposed solution would allow joint account holders to be treated as ‘tenants in common’, similar to joint home ownership, enabling banks to split balances in cases of abuse. Other measures include requiring consent from both parties for large withdrawals, reducing the risk of sudden financial depletion.
The report also outlines structural challenges facing banks. Regulatory constraints, rapid technological innovation and the difficulty of dealing with abusive customers without escalating risk for victim-survivors were all cited as barriers to action. At the same time, the researchers argue that many existing tools, such as fraud detection systems and transaction monitoring capabilities, could be adapted to better identify and prevent patterns of economic abuse.
Dr Belén Barros Pena, interaction designer and researcher at City St George’s, University of London, said: “This research shows how our always-on, fast and convenient financial technologies have unintended consequences and can be misappropriated for harmful purposes. In their current form, financial technologies are not designed to frustrate or prevent such harms. To change this, we must ensure victim-survivors have a voice and can contribute to technology-making processes.”
The researchers conclude that addressing economic abuse will require closer collaboration between banks, regulators and technology teams, with a stronger focus on inclusive design and preventative safeguards embedded directly into banking platforms.
Copyright © 2025 RegTech Analyst
Copyright © 2018 RegTech Analyst
