HSBC debuts Zing consumer finance app as startup competition intensifies

HSBC Holdings plc, the UK’s largest bank, today debuted a new consumer finance app called Zing.

Zing could put the financial services giant in a better position to deal with growing competition from smaller rivals. The new app offers similar functionality to London-based venture-backed consumer finance providers Revolut Ltd and Wise Payments Ltd. A surge in user registrations pushed the companies’ combined revenue to more than 1.6 billion pounds ($2 billion) in their most recent financial year.

The app is available on iOS and Android.according to bloomberg, HSBC plans to release it in the UK in the coming days, with the goal of making it available in other countries in the future. The bank has a presence in dozens of markets around the world.

Zing allows users to hold funds in up to 10 currencies. Although operated by HBSC, the app reportedly operates as an “electronic money institution” rather than a bank. As a result, your funds are not insured by the Financial Services Indemnity Scheme, the UK equivalent of the Federal Deposit Insurance Corporation.

In addition to the ability to store funds, Zing also provides the ability to send money. The app allows users to make cross-border payments in over 30 currencies. According to Bloomberg, Zing uses a combination of local financial platforms and the Swift international money transfer system to process transactions.

“Now is the time for a new kind of international payments solution, one that combines cutting-edge innovation with the support of a global bank,” said James Allan, founder and CEO of Zing.

HSBC already offers similar money transfer capabilities through a suite of services called Global Markets. However, these services are only available to consumers who have opened an account with the bank. Zing has not put forward such requirements, which could allow HSBC to expand its market reach.

If Zing proves popular, banks could expand the feature set it offers at launch by adding more consumer finance services. Such a move would open up further opportunities for HSBC to monetize its app’s user base. Revolut, which operates a mobile banking app of the same name, has adopted a similar revenue growth strategy.

Revolut generated revenue of £850m in 2022. Bloomberg reported last month. report The company’s average monthly revenue will reach £125m in the first half of 2023, implying an occupancy rate of over £1.5bn. Revolut is said to be growing its install base by around 30,000 new users every week.

Another Zing competitor, Wise, is also experiencing rapid growth.company revenue climbed In the six months to 30 September, it rose 25% to £498.2m on the same period last year, almost tripling profits over the same period.

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