HSBC has launched a new mobile app that will use the ‘nudge theory’ to help its customers make better financial decisions and help them avoid incurring overdraft charges.
The new Nudge app will utilise customers’ current account data to track their spending habit and will send them targeted digital ‘nudges’ to make them aware of their expenses.
The bank is currently assessing the effectiveness of 38 types of nudges in a three-month trial with 500 customers.
The nudges include notifications about consumer’s grocery expenditure in a week, and comparison of their financial behaviour with consumers having similar incomes.
HSBC UK digital head Raman Bhatia said: "By incorporating nudge theory into our digital customer communications, we can help customers to achieve their financial goals."