HSBC is testing a new smartphone nudge app which will help people track what they spend money on and sends out spending limits alerts.

Customers can add different back accounts from up to 21 money sources and keep track of all their balances in one app. The app is being trialled with 10,000 customers and will launch in 2018.

The app uses nudge theory to encourage customers to make small, regular financial decisions that will result in a change to long-term spending habits.
A  study by the London School of Economics and Politics (LSE)*, commissioned by HSBC, utilised behavioural science to explore the barriers experienced by people when trying to achieve their financial goals. It identified that leveraging technology, such as automatic messages, was key in encouraging people to meet their financial ambitions.
Nudge theory is a concept which argues that positive and indirect suggestions or ‘nudges’, can influence an individual’s decision-making. Using software to evaluate individuals’ current account data, Nudge identifies trends in customers’ spending habits and sends regular, targeted digital ‘nudges’ to make people aware of their expenditure. These messages are designed to encourage customers and help them achieve their
The Nudge app identifies trends in customers’ spending habits and sends regular, targeted digital ‘nudges’ to make people aware of their expenditure. These messages are designed to encourage customers and help them achieve their long term financial goals.