Banking Habits Could Signal Dementia 10 Years Early, Says New Study—Don’t Miss These Warning Signs
A new study finds that certain financial behaviors could point to early cognitive decline
When it comes to conditions such as Alzheimer’s or dementia, there are often signs of cognitive decline before an official diagnosis is made. According to the Alzheimer’s Association, things like trouble doing everyday tasks, losing things or forgetting how you got somewhere are just a few of the early signs of Alzheimer’s and dementia. Now, research shows that there’s a new symptom we should be paying closer attention to: banking habits. A recent study published in the journal JAMA Network Open revealed that how a person’s banking habits change over time could predict dementia long before more noticeable symptoms like forgetfulness appear. Here, read all about the study.
What the banking and dementia study found
The study, which was published on June 13, used data from a UK bank from January 1, 2009, and April 21, 2023. It compared 16,742 people who were using a power of attorney due to loss of financial capacity with 50,226 people without any loss of financial capacity (the control group). The study authors noted that those in the control group shared the same demographic and socioeconomic characteristics as their counterparts 10 years prior to their power of attorney (PoA) registration.
In total, researchers looked at 344 financial indicators, both transactional and non-transactional, in those who had cognitive decline and those who didn’t. Things like frequency of online banking as opposed to in person banking, how often an individual reset their PIN and more were used as a means of comparing how banking habits changed as a person’s cognitive abilities waned.
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The financial behaviors that may signal cognitive decline
The results of the study indicated that certain financial behaviors and changes that occur in individuals can indicate a decreasing financial capacity and decline in cognitive abilities up to 10 years before a formal diagnosis is made—which can take up to four years.
Data from the studies showed several unique pointers regarding the financial habits of those in the years prior to acquiring a power of attorney.
Study authors noted that five years before the power of attorney registration, individuals were less likely to spend on things like buying clothes, travelling and hobbies like gardening, for example, and more likely to spend on things associated with time spent at home, such as gas and electricity. Additionally, results showed that those in the power of attorney group were more likely to reset their PIN, report lost or stolen cards and report instances of fraud.
“These patterns provide the first large-scale evidence that behavioral data held by financial institutions can reveal the early emergence of cognitive decline,” said John Gathergood, professor at the University of Nottingham School of Economics, who oversaw the study.
“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,” Gathergood continued. “Early detection through financial behavior may be a key part of that solution. By better understanding behavioral markers of declining capacity, banks can explore how to strengthen safeguards for customers.”
What to do if you suspect early dementia symptoms
If you or a loved one is showing signs of cognitive decline—whether it’s forgetfulness, confusion with financial tasks, or unusual changes in spending habits—it’s important to take action early. Here are expert-recommended steps to follow:
- Schedule a comprehensive medical evaluation.
Start by visiting a primary care physician to discuss any changes in memory, behavior or cognitive ability. They may perform simple screening tests or refer you to a neurologist or geriatric specialist for more detailed cognitive assessments.
- Track behavioral and financial changes.
Keep a log of any noticeable changes, including missed bill payments, repeated PIN resets or unusual purchases. These notes can be very helpful during medical evaluations and may help identify patterns of decline over time.
- Have a conversation with family members.
Talking openly with loved ones can reduce confusion and stress. If possible, involve the individual experiencing symptoms in discussions about future care and financial planning, including establishing a power of attorney.
- Get support from specialists.
Geriatric care managers, memory clinics and support groups—such as those offered by the Alzheimer’s Association—can provide tools, counseling and guidance for navigating the journey.
- Review and protect financial accounts.
Work with a trusted advisor or family member to ensure safeguards are in place. Many banks offer alert systems or restricted account access options that can help protect against financial exploitation.
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