HSBC loses its Zing as app can’t match fintech rivals

Major universal bank HSBC has recently announced the closure of its Zing app just a year after its launch, potentially putting around 400 jobs at risk.

The Zing app, introduced in January 2024, was rolled out to take on fintech rivals like Revolut and Wise by offering cheaper cross-border payment fees.

However, its short-lived run suggests that big banks like HSBC are struggling to match the speed and innovation of tech-first disruptors.

What is the Zing app?

Zing is a digital mobile platform designed to offer lower fees for cross-border payments and aims to provide a more modern, user-friendly experience for customers handling international transactions.

However, the app struggled to gain traction in the marketplace from the start. According to data intelligence platform Apptopia, only 36,000 UK customers downloaded the app. This was a far cry from the likes of Revolut, which was downloaded over 15.6 million times in 2024 alone – making it the most downloaded neobank app in the UK.

Now, the bank has announced that it will be closing Zing just a year after its launch. While it didn’t disclose how many jobs would be lost as a result of the decision, it is speculated that 400 roles will be at risk.

In a statement, a spokesperson for HSBC said: “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,”

“HSBC is focused on increasing leadership and market shares in the areas where it has clear competitive advantage, and where it has the greatest opportunities to grow and support our clients.”

Why is Zing shutting down?

HSBC hasn’t provided a clear reason for Zing’s closure, but tough competition and lack of customer adoption are the likely culprits for its demise. 

Moreover, Ritesh Jain, former COO of HSBC, described the app as a “me-too product” in a Finextra blog post.

“Zing’s attempt to compete directly with Wise and Revolut was essentially a ‘me-too’ product, struggling to carve out a unique value proposition,” Jain wrote. “In a market where customers expect speed, transparency, and low-cost services, merely replicating existing offerings rarely works.”

Zing also faced a couple of compliance hurdles shortly after its launch, while its fintech competitors managed to navigate this through quick adaptation. Despite partnering with AI technology company Silent Eight to strengthen its compliance operations, HSBC still lagged behind in managing the fast-evolving rules.

Startups 100 fintechs leave traditional banks struggling to keep up

We’ve seen some incredible fintech businesses grace this year’s Startups 100 Index. This includes Atlantic Money – a platform designed to simplify international money transfers by offering a flat fee of £3 per transaction.

Unlike many competitors that charge percentage-based fees, Atlantic Money offers clear, predictable pricing, which makes it a great option for anyone wanting to avoid surprise charges.

Beyond international payments, our other impressive entrants include Yonder. Achieving third place in this year’s index – and set to rival Monzo – Yonder offers a rewards credit card where customers can earn points and redeem them for experiences, flights and dining options at popular restaurants.

With so many innovative fintechs shaking up the financial industry, it isn’t surprising that traditional banks are struggling to keep up. These startups are changing the game with fresh ideas, transparent pricing and user-friendly tech, pushing old-school banks to rethink their strategies to stay relevant in an increasingly competitive market.