HSBC Closes Zing App – Startups.co.uk 

Main common financial institution HSBC has lately introduced the closure of its Zing app only a yr after its launch, doubtlessly placing round 400 jobs in danger.

The Zing app, launched in January 2024, was rolled out to tackle fintech rivals like Revolut and Clever by providing cheaper cross-border cost charges.

Nevertheless, its short-lived run means that large banks like HSBC are struggling to match the pace and innovation of tech-first disruptors.

What’s the Zing app?

Zing is a digital cell platform designed to supply decrease charges for cross-border funds and goals to supply a extra trendy, user-friendly expertise for patrons dealing with worldwide transactions.

Nevertheless, the app struggled to realize traction within the market from the beginning. In response to knowledge intelligence platform Apptopia, solely 36,000 UK clients downloaded the app. This was a far cry from the likes of Revolut, which was downloaded over 15.6 million occasions in 2024 alone – making it essentially the most downloaded neobank app within the UK.

Now, the financial institution has introduced that will probably be closing Zing only a yr after its launch. Whereas it didn’t disclose what number of jobs could be misplaced because of the choice, it’s speculated that 400 roles will probably be in danger.

In an announcement, a spokesperson for HSBC mentioned: “Following a strategic overview of Zing throughout the HSBC Group and after cautious consideration, we have now made the choice to shut Zing and combine its underlying expertise platform into HSBC,”

“HSBC is targeted on growing management and market shares within the areas the place it has clear aggressive benefit, and the place it has the best alternatives to develop and assist our shoppers.”

Why is Zing shutting down?

HSBC hasn’t offered a transparent purpose for Zing’s closure, however powerful competitors and lack of buyer adoption are the doubtless culprits for its demise. 

Furthermore, Ritesh Jain, former COO of HSBC, described the app as a “me-too product” in a Finextra weblog publish.

“Zing’s try to compete straight with Clever and Revolut was primarily a ‘me-too’ product, struggling to carve out a singular worth proposition,” Jain wrote. “In a market the place clients count on pace, transparency, and low-cost companies, merely replicating present choices hardly ever works.”

Zing additionally confronted a few compliance hurdles shortly after its launch, whereas its fintech opponents managed to navigate this by way of fast adaptation. Regardless of partnering with AI expertise firm Silent Eight to strengthen its compliance operations, HSBC nonetheless lagged behind in managing the fast-evolving guidelines.

Startups 100 fintechs go away conventional banks struggling to maintain up

We’ve seen some unbelievable fintech companies grace this yr’s Startups 100 Index. This consists of Atlantic Cash – a platform designed to simplify worldwide cash transfers by providing a flat payment of £3 per transaction.

In contrast to many opponents that cost percentage-based charges, Atlantic Cash affords clear, predictable pricing, which makes it an amazing possibility for anybody eager to keep away from shock expenses.

Past worldwide funds, our different spectacular entrants embody Yonder. Reaching third place on this yr’s index – and set to rival Monzo – Yonder affords a rewards bank card the place clients can earn factors and redeem them for experiences, flights and eating choices at fashionable eating places.

With so many modern fintechs shaking up the monetary trade, it isn’t shocking that conventional banks are struggling to maintain up. These startups are altering the sport with recent concepts, clear pricing and user-friendly tech, pushing old-school banks to rethink their methods to remain related in an more and more aggressive market.