Bankers are on the front lines in fight against domestic violence

At a time when the incidence of domestic violence is high and rising, it is essential that banks recognize that they are uniquely positioned to recognize and respond to clients who may be seeking a way to escape from an abusive relationship.

UN Women reports that one in three women worldwide experience physical or sexual violence from a trusted person in her own home. By all measures, COVID-19 and resulting social isolation and stay-at-home mandates intensified domestic and intimate partner violence.

The biggest barrier to reducing such violence is financial insecurity. When someone is seeking to exit from a dangerous situation at home, they first confront their balance sheet. Do I have enough money to leave? Will I be able to secure an apartment or safe dwelling on my own? Can I afford to bring with me those members of my household who depend on me?

Moreover, perpetrators of intimate partner violence frequently make bad financial decisions with joint funds, seek emotional leverage through financial control, or pressure their partners to borrow money on their behalf. Money is always complicated, but consequences of financial decisions are intensified in unsafe household environments.

Financial options support women caught in such scenarios. If we acknowledge the role banks play in providing these options, the financial services industry can design and deploy them for maximum impact.

Paulette Perhach popularized the idea of a “F*ck off fund” a few years ago to encourage women to make their own life choices without financial constraints. This is one of a range of financial tools, including secure and private savings, emergency loans, remittances or payments from trusted friends, which can aid people who are victims of domestic violence.

Financial services providers have a responsibility to identify and administer these tools that can meet customers’ needs, especially for those who are in at-risk situations.

The time is now to recognize the opportunity and ability of financial institutions to purposefully empower people to leave destructive household situations, and it is encouraging to see that this is already taking place in many places around the world.

For example, the Australian Banking Association has introduced guidelines for its members on how to address intimate partner violence. Westpac, one of Australia’s “Big Four” banks, trains its staff to spot potential domestic violence and financial abuse. If these situations are identified, specialist teams can provide financial help in the form of financial flexibility and special considerations to suit an individual’s circumstances.

This might include a moratorium on loan repayments, alternative ID requirements for those who have left their homes hastily without their wallets and credentials, options to send account statements to a trusted address and even assistance for pet accommodation. Staff make referrals to external support specialists, where appropriate, to help with next steps like a safe exit plan, housing assistance, trauma counseling, or financial counseling. Westpac has sent warning letters, exited customer relationships over poor behavior and, when necessary, reported offenders to law enforcement. Westpac sees itself not only as a financial services provider, but also as an enabler of financial security, aspiring to help its customers meet their changing life needs and pursue economic empowerment at the individual level.

Last year in Latin America, three microfinance institutions (CREDICAMPO and PADECOMSM Credito in El Salvador and ODEF Financiera in Honduras) engaged with the Grameen Foundation to conduct training for its loan officers to learn how to recognize intimate partner violence and other gender-related household risks, upon first meeting clients. These workshops on dynamics of power and conflict in relationships help loan officers to be aware of the wider context of their clients’ lives and prepare them to address real-life challenges through finance.

In the U.S., a California-based organization called FreeFrom created a financial security policy map and scorecard, showing how financially difficult it is, on average, for intimate partner violence survivors to leave unsafe situations. FreeFrom then couples this research with direct financial assistance for survivors, as well as connections to valuable financial services.

Isolating women’s financial lives from their domestic lives often poses perilous consequences. In the fight against intimate partner violence, financial institutions already act as frontline workers, offering immediate and essential resources for women’s welfare and independence on a global level. If we acknowledge and resource this role banks already have, the financial industry can make an increasingly significant impact on curbing domestic violence around the world.