HSBC has closed its currency conversion app, Zing, marking the end of its attempt to compete with major money transfer platforms like Wise. Zing was introduced in January 2023 as a next-generation currency management app but struggled to establish a unique position in the competitive fintech space.
Zing was developed by HSBC’s head of FX and payments, James Allan, and operated as an e-money institution. The platform allowed users to:
- Hold funds in over 10 currencies.
- Send money in over 30 currencies.
- Conduct transactions in more than 200 countries and territories.
Supported by partners like Visa, Currencycloud, and Tink, Zing was launched with significant promise but failed to gain traction in a crowded market.
The closure, likely resulting in approximately 400 job losses, follows a strategic review within HSBC. A spokesperson for HSBC stated:
“We have made the decision to close Zing and integrate its underlying technology platform into HSBC. The bank is focused on areas where it has a clear competitive advantage and the greatest opportunities to support clients.”
Incoming HSBC CEO Georges Elhedery deemed further investment in Zing an inefficient use of capital. Instead, HSBC will focus on incorporating Zing’s technology into its broader infrastructure.
While HSBC struggled with Zing, competitors like Wise continue to thrive, scaling their operations and embedding services into the banking sector with clients like Morgan Stanley and Standard Chartered.
Former HSBC COO Ritesh Jain commented:
“Zing’s ‘me-too’ approach, without offering a distinct or innovative edge, doomed it from the start. In fintech, succeeding requires anticipating future market trends, not just replicating existing offerings.”
He further noted that Zing’s failure highlights broader challenges for banks launching fintech ventures, including:
- Adapting legacy systems.
- Managing conservative investors.
- Navigating complex regulatory landscapes.