App that ‘nudges’ you if you spend too much

HSBC has become the first big British bank to set up an “open banking app” which will warn people when they spend too much on going out or on clothes.

Designed to help people manage their monthly budgets, the app – called Connected Money – lets users see their spending across 30 categories including groceries, shopping and utilities. They can see their current account as well as online savings accounts, mortgages, loans and cards held across several banks. Customers can currently add accounts from up to 21 different banks, HSBC said.

A bills calendar helps people see what payments are coming up next and a “balance after bills” feature so users can see how much money they will have left until payday when their standing orders and direct debits have been taken out.

In future, the app – available to HSBC current account customers via the App Store – will “nudge” people with savings suggestions based on their spending habits.