NewsBTC_HSBC Nudge Whenever a major bank advises its customers to spend less and save more, there is always a hidden meaning behind the message. In the case of HSBC, they intend to make consumers more aware of their spending habits and reduce future debts through the Nudge app. But at the same time, money stored in a savings account allows the bank to generate more profit and puts consumer funds at risk. Bitcoin, on the other hand, gives consumers complete financial freedom and does not allow for anyone to create debts in a traditional sense. HSBC Launches Nudge App To Reduce Consumer Spending
Reading media headlines regarding banks these days can be a source of a lot of confusion and controversy. On the one hand, the banks want consumers to spend more and boost economic growth in just about every part of the world. At the same time, these institutions advise investors to pull their funds out of volatile assets and foreign currencies and either buy bonds or store money in their bank account.
HSBC has taken things one step further by launching a new mobile app, called Nudge . The goal of this application is to reduce consumer spending and get them to save more funds for a rainy day. On paper, there is nothing wrong with this concept, were it not for the profits banks stand to gain from funds “resting” in savings accounts.
All of the funds stored in a savings account gives the bank an extra opportunity to lend that money to other financial players in exchange for hefty profits. While there is such a thing as a ” bank deposit guarantee ”, very few people will ever recoup their full amount of money once the institution goes bankrupt. Needless to say, more funds stored in […]
