binarypublishHSBC, the largest bank in the UK, has launched a new consumer finance app called Zing to compete with smaller fintech startups. The app, available on iOS and Android, offers features similar to those of Revolut and Wise, two London-based fintech firms that have seen significant revenue growth in recent years. Zing allows users to hold funds in up to 10 currencies and also offers money transfer capabilities in over 30 currencies. However, unlike traditional banks, Zing operates as an “e-money institution,” meaning users’ funds are not insured by the Financial Services Compensation Scheme. HSBC plans to release Zing in the UK first and then expand to other countries in the future.
Zing’s launch could help HSBC address the increasing competition it faces from fintech startups. Revolut generated revenue of £850 million in 2022, and Wise saw a 25% year-over-year increase in revenue. By offering a consumer finance app, HSBC can tap into this lucrative market and potentially monetize the app’s user base through additional services. Zing may also help HSBC expand its market reach by not requiring users to open an account with the bank to access its money transfer features.
The launch of Zing highlights the growing trend of traditional banks entering the consumer finance app space to compete with fintech startups. As more consumers turn to digital banking and mobile payment apps, banks are recognizing the need to offer similar services to stay relevant and to attract customers. By leveraging their existing infrastructure and customer base, banks like HSBC have the potential to disrupt the fintech market and regain market share. However, they will need to innovate and provide a seamless user experience to compete effectively with established players like Revolut and Wise.
