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HSBC is shutting its payments app Zing just a year after it launched the digital challenger, marking the latest closure of a fintech offshoot by a big bank.
“Following a strategic review of Zing within the HSBC Group and after careful consideration, we have made the decision to close Zing and integrate its underlying technology platform into HSBC,” the bank said.
HSBC had in January last year announced ambitious plans to offer a cheap foreign exchange app to compete with fast-growing digital rivals such as Revolut and Wise.
Zing, which targeted young customers including international students and expatriates, had plans to open on two continents by the end of 2024, but never expanded outside the UK.
The closure marks the latest failed fintech venture by a traditional bank, which have struggled to build nimble operations and differentiate themselves in a crowded market.
UK retail bank NatWest said in 2020 that it would shut its digital bank Bó just six months after its launch to prioritise “investment spend across the bank”. Meanwhile, Barclays closed its mobile payments service Pingit in 2021.
The decision to shut Zing — which was first reported by Financial News — was part of the group’s “simplification” strategy announced in October last year, the bank said.
“HSBC is focused on increasing leadership and market share in the areas where it has a clear competitive advantage, and where it has the greatest opportunities to grow and support our clients.”
The decision came after Georges Elhedery took over as chief executive in July last year following the departure of former chief Noel Quinn.
Zing’s launch had been overseen by HSBC’s former head of wealth and personal banking, Nuno Matos, who had been a leading contender to become chief executive but left the bank in August after missing out on the top job.
HSBC made a push into the UK fintech sector in 2022 with a $35mn investment in Monese, a UK-based start-up that offers current accounts to people underserved by mainstream banks. HSBC used Monese’s tech stack to build Zing.
After posting a £30.5mn loss for 2022 and warning of “material uncertainty over the success of raising future fundraising and therefore the going concern status of the company”, Monese was purchased by fintech Pockit last year.
