Ally Financial is piloting an app called 'Splurge Alert' that uses geolocation technology to identify when users are near to stores that they overspend in and alerts friends who can intervene.
According to a Harris Poll survey commissioned by Ally, 85% of Americans admit to splurging - generally defined as buying an item that is not needed, regardless of price.
The new app asks users to identify stores and areas where they tend to overspend and then select friends and or family who can help them avoid overspending pitfalls.
The app uses geolocation tech to determine when users approach a "splurge zone," and then sends an alert message to a designated buddy in hopes that they will lure the user away from the problem area.
Ally has even enlisted celebrities such as HGTV's Property Brothers co-host, Drew Scott, and country music duo, Big & Rich to test Splurge Alert and share how they spend their money through videos and social media.
Andrea Riley, chief marketing officer, Ally, says: "The intent of this fun and insightful tool is to raise awareness for consumers about spending habits that may be keeping them from attaining their savings goals."