HSBC bank has soft-launched Nudge, an app designed to encourage UK customers to improve how they manage their finances.
Over the next three months, the app will use nudge theory to help 500 customers – who are also HSBC employees – make small tweaks to their day-to-day spending. Nudge theory argues that indirect suggestions can positively influence a person’s decision making.
Using software to evaluate individuals’ current account data, HSBC Nudge identifies trends in customers’ spending habits and sends regular, targeted digital ‘nudges’ to alert people to bad habits that they might want to improve.
There are currently 38 types of nudges in the trial, including notifications about the amount of money spent on groceries in a week and updates on how much customers are spending or saving versus others in the same income bracket. HSBC will evaluate the effectiveness of different nudges during the three-month trial.
Willpower alone is not always enough to drive a long term change in behaviour
– Raman Bhatia, HSBC UK
Raman Bhatia, head of digital at HSBC UK said: ‘Many of our customers have good intentions for their financial futures, but 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.’
The Nudge app follows HSBC’s introduction of a text alert service that warns customers when they are approaching their overdraft limit.
To promote the Nudge app, HSBC launched an installation at London’s Victoria Station, asking people to write their New Year’s resolutions on post its so as to encourage them to stick with their pledges.