19 Feb Marrying behavioral science with everyday banking
HSBC is developing an app to help their customers save money by keeping track of their everyday spending.
The app, called “Nudge,” will send users notifications about their spending habits, combining messages of positive reinforcement and loss aversion to encourage saving behavior.
With the app users can compare this week’s food spending with prior weeks. Or see how much they spend on coffee compared with other people like them.
“The theory of Nudge is very simple,” says HSBC’s Raman Bhatia. “Whether you are deciding to eat that next doughnut or save for a rainy day, people are motivated by the present rather than planning for the future.”
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