While the link between financial stability and mental health is well-established, a new University College Dublin (UCD) study reveals a major blind spot in current research: an over-reliance on self-reported surveys rather than objective financial data.

The joint review by UCD School of Computer Science and UCD School of Psychology evaluated 43 studies on financial habits and mental illness, uncovering significant gaps.

Objective data is rarely used: Only 4 of the 43 studies reviewed analysed objective financial records such as bank transaction histories or gambling data.

Underuse of new technology: Traditional statistical methods still dominate the field, with fewer than 20% of studies utilising advanced analytics from machine learning or modern predictive modelling.

One-way focus: Nearly 80% of research examined how financial hardship causes mental health issues, largely ignoring how mental health conditions actively alter financial behaviour.

Narrow diagnostic scope: Existing research predominantly focused on depression, followed by anxiety and general psychological distress.

Why objective financial data matters

Self-reported survey data relies on memory and perception, which can be heavily skewed during episodes of depression, distress, or mania. In contrast, anonymized, real-time banking data allows researchers to observe actual spending spikes, missed payments, or sudden changes in financial behaviour without bias.
Pairing anonymized banking data with advanced analytics creates new opportunities to protect both financial security and mental wellbeing.

“Shifting towards objective measurement opens the door for the development of better digital tools,” said lead author Dara Adedeji, PhD candidate, UCD School of Computer Science. “In the future, banking apps could offer opt-in safeguards, tailored budgeting alerts, or early-warning features designed to protect an individual's financial security during periods of ill health.”

“Understanding real-time financial behaviours can help clinicians and individuals recognize early warning signs of psychiatric distress or manic spending episodes, creating opportunities for proactive clinical discussions,” added study co-author Associate Professor Keith Gaynor, UCD School of Psychology. “Integrating objective financial data into mental health research marks a critical shift toward earlier identification of financial vulnerability and far more targeted, timely interventions.”

'Money and mental health: a scoping review of financial variables, data sources, and analytical methods' was published in Frontiers in Public Health in July (DOI: 10.3389/fpubh.2026.1812845).

The study was led by Dr Mark Matthews at UCD School of Computer Science.