A new finance app from HSBC will help users become more aware of their spending while also trying to encourage better spending choices.
The HSBC Nudge app is hoping to use findings from research which demonstrate that a gentle ‘nudge’ can help customers better achieve their financial goals. The ultimate aim is that it helps to change your long term spending habits.
The way it works is by sending positive and indirect suggestions or ‘nudges’ which can influence how you make spending decisions.
The app will tell you when you’re spending too much or saving too little through notifications, or a nudge, on your smartphone. Once you’ve been given a nudge the idea is that you can either control what you spend or make changes to your budget based on your behaviour.
“We know that many of our customers have good intentions for their financial futures, but that willpower alone is not always enough to drive a long term change in behaviour. By incorporating nudge theory into our digital customer communications, we can help customers to achieve their financial goals.”
Raman Bhatia, Head of Digital, HSBC UK
While the Nudge app sounds brilliant to see and change how you spend, there are some common tools to help you do the same.
Basic bank accounts, text alerts and budgeting apps can make saving money and budgeting much easier. If you have a smartphone you can set up alerts, download apps and start to get a tighter grip on your finances each day.
Setting up a simple text alert service to warn you when you’re reaching your overdraft can be beneficial. This helped HSBC customers save £800,000 in overdraft charges between Christmas and New Year in 2015. In total it has saved customers over £85 million.
Speak to your local bank should you want more information on setting up text alerts for your account.
The launch date for the HSBC Nudge app is expected to be announced later in 2016.
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