The news marks the end of a venture that was launched with considerable fanfare in January of last year, with HSBC seeking to carve out a foothold in the rapidly expanding multi-currency banking and payments space. In the year since its launch, Zing’s closure has raised questions about the difficulties traditional banks encounter when trying to build and maintain standalone fintech products. Equally significant, this move underscores just how competitive the sector has become, dominated by nimble players like Wise and Revolut that have successfully redefined international banking for millions of users.
The announcement of Zing’s closure was initially reported by Financial News before it was confirmed by HSBC representatives. According to various sources, the shuttering of Zing could put up to 400 jobs at risk, although HSBC has not offered a specific figure. While these job losses are causing concern in the fintech community, the bank has framed the decision as part of a broader “simplification” strategy under HSBC’s new CEO, Georges Elhedery, who took the reins in July of last year. Several insiders point out that Zing’s fate was sealed by an internal decision to shift focus toward HSBC’s core banking services, rather than pouring additional resources into its fledgling fintech spinoff.
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 spokesperson
In practical terms, customers who relied on Zing for international payments will soon need to look elsewhere or be steered toward HSBC’s own Global Money proposition, subject to new checks and compliance procedures. While HSBC has promised a relatively smooth transition, the abrupt end to Zing leaves some questions hanging about how effectively the bank can retain customers who had been attracted by Zing’s dedicated cross-border services. Many of these users, after all, had chosen Zing precisely because it sought to replicate the easy, app-based experience provided by market leaders like Wise and Revolut.
Zing’s rapid demise also highlights a bigger trend. Over the past few years, some major banks have tried—and often failed—to take on the challenge of launching agile fintech solutions under their own banner. The closure of Zing echoes previous high-profile closures such as NatWest’s digital banking app Bó, which was wound down just six months after launch, and Barclays’ Pingit, which was discontinued after nearly a decade of operation. More recently, a loyalty app called Bink, which had received backing from Lloyds and Barclays, folded in 2023, adding to the pattern of short-lived fintech ventures backed by incumbents.
For HSBC, the pressure has been building for some time. While the bank undoubtedly possesses a vast global footprint and significant capital reserves, it faces stiff competition from nimble fintech start-ups that appear more adept at launching lean, user-friendly products. Wise and Revolut, in particular, have set a high bar for cross-border payments by offering low foreign exchange fees, real-time exchange rates, and sleek digital interfaces. Revolut, for example, has soared to become one of Europe’s most valuable fintechs, with a valuation of $45 billion as of August last year, aided by its diversified product offerings, including crypto trading, stock investments, and even travel insurance. Wise has similarly made headlines by steadily growing its global user base, boasting over 16 million personal and business customers, and reporting a remarkable 229% increase in pre-tax profits to £481 million in its latest annual accounts.
Zing’s attempt to compete directly with Wise and Revolut was essentially a ‘me-too’ product, struggling to carve out a unique value proposition. In a market where consumers expect speed, transparency, and low-cost services, merely replicating existing offerings rarely works. — Ritesh Jain, former HSBC COO, quoted in Finextra
This assertion by Jain encapsulates the complexity of the situation. Banks like HSBC often have to operate within a legacy framework—complete with multiple layers of compliance, risk aversion, and rigid corporate structures. In contrast, fintechs like Wise and Revolut, unburdened by such legacy systems, have the freedom to innovate and iterate rapidly. This dynamic has proven difficult for big banks to emulate. Even with the resources to develop a brand-new product, the cultural and structural limitations can be stumbling blocks. Zing, for instance, was registered as an e-money institution and launched with the backing of significant partners like Visa, Currency Cloud, and Tink. Yet it apparently lacked an “innovative edge,” leaving it overshadowed by more established fintech disruptors.
From HSBC’s perspective, the official line is that Zing’s technology will not be wasted. The bank plans to integrate Zing’s underlying tech platform into its existing operations, aiming to enhance cross-border payment solutions within the main HSBC product suite. This, however, still leaves the question of whether it would have been more cost-effective—or brand-enhancing—to keep Zing afloat, refining and improving it as a discrete brand. Some analysts suggest that cost-cutting measures across the bank, along with a change in leadership, made that option unappealing. Under Georges Elhedery, the emphasis appears to be on core revenue drivers and maintaining shareholder confidence rather than venturing further into what some might consider risky fintech experimentation.
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. — HSBC spokesperson
Indeed, focusing on so-called “competitive advantages” is a logical strategic approach for a bank the size of HSBC. The organization continues to have a global presence spanning multiple continents, and it remains particularly strong in Asia, which it views as a central market. However, for many observers, Zing’s closure signals the reality that big banks have yet to find a truly sustainable model for challenging fintech innovators on their own turf. The question thus becomes whether any incumbent can out-innovate or at least keep pace with the wave of fintech solutions that attract younger, digitally savvy consumers.
In addition, the scale and speed of change required for such projects can run into internal friction within large institutions. For instance, compliance and legal teams within a bank like HSBC naturally prioritize risk mitigation. When it comes to a cross-border payments product—where Anti-Money Laundering (AML), Know-Your-Customer (KYC), and sanctions checks must be robust—the operational overhead can quickly balloon. Reports suggest Zing struggled with compliance restructuring, an effort that demanded resources and time that may not have been readily available. Meanwhile, companies like Revolut or Wise built their entire business models around compliance technology, effectively baking it into their systems from day one, thus allowing them to scale at speed without the same degree of friction.
On the other hand, legacy banks do have undeniable strengths. They typically enjoy deep capital reserves, longstanding customer trust, and diversified revenue streams that can withstand occasional strategic pivots. HSBC’s venture capital arms and innovation departments will likely continue to look for opportunities to acquire or partner with fintechs that complement the bank’s global strategies. Nonetheless, the in-house creation of a new brand—especially one meant to go toe-to-toe with well-established fintechs—seems to be a riskier endeavor, as Zing’s short lifespan demonstrates.
Another essential factor in this narrative is the role of brand perception. HSBC is a household name, particularly known for corporate banking, high-street services, and international finance. Launching Zing as a separate brand was presumably an attempt to distance the new fintech product from the more traditional image of HSBC, potentially appealing to digitally savvy users who might look skeptically at a large, somewhat traditional bank. Yet that separation can also be a double-edged sword: while it may allow a more modern look, it can deprive the new venture of the trust and resources that come from close association with the parent brand. Moreover, the fear of cannibalizing the bank’s other services might prevent a spinoff like Zing from truly offering the most competitive rates or drastically new features, leaving it perpetually in the shadow of specialized fintech rivals.
There’s a pattern: Traditional banks often find it challenging to balance a legacy framework and a fintech approach. You need a culture that embraces rapid innovation, something that doesn’t always mesh with large corporate structures.
— Industry Analyst, commenting on Zing’s closure
Such observations hint at the broader industry conundrum: big banks, while they have the resources to innovate, rarely align quickly enough around a cohesive digital transformation strategy that fosters organic fintech growth. Possibly, the most effective approach for incumbents might be to purchase successful fintech scale-ups outright, thereby incorporating proven user experiences and technology without the headache of building from scratch. Yet even acquisitions come with challenges: integrating new teams, sustaining their entrepreneurial spirit, and merging distinct corporate cultures is no small feat.
For customers who found value in Zing’s cross-border capabilities, the end of this venture will be a disappointment. Zing allowed users to hold funds in over 10 different currencies, send money in more than 30 currencies, and transact internationally in over 200 countries. For many, the ease of a single app that facilitated real-time foreign exchange, transparent fees, and immediate notifications represented a much-needed alternative to the bureaucracy and hidden costs often associated with traditional banking. Now, those customers are being asked to migrate to HSBC’s Global Money proposition, which might not mirror Zing’s user experience as closely as they would like.
Meanwhile, the competition among multi-currency account providers continues to intensify. Wise, building on its strong brand identity and transparent fee structure, has partnered with major financial institutions like Morgan Stanley and Standard Chartered, an intriguing example of how a fintech can integrate into the banking sector from the outside. Revolut, on the other hand, has consistently expanded its portfolio, launching everything from crypto trading to business accounts, making it a one-stop financial platform for a wide range of services. Both companies have shown they can pivot and adapt quickly, often rolling out new features in response to changing consumer needs or market trends.
For HSBC, the experience gleaned from Zing’s short life may still prove useful. The bank will likely incorporate the lessons learned about user experience, compliance integration, and agile development into its main product lines, refining its cross-border banking services for a customer base that increasingly expects the convenience found in fintech apps. If HSBC can manage that transition effectively, the underlying technology from Zing may become the backbone for an improved suite of global payment solutions, albeit without the separate fintech branding that once promised to stand on its own.
Going forward, the bigger question is whether we’ll see more of these high-profile “fintech within a bank” experiments shut down, or if the incumbents will find a winning formula. Banks face a conundrum: should they invest heavily in a new brand with uncertain success, or should they adopt a more incremental approach, infusing fintech-like improvements into their main services? The track record, so far, suggests that spinning up a standalone fintech is often a losing proposition. The overheads, complex compliance requirements, and internal hesitations weigh heavily against them, making them slower to gain traction in a highly competitive market.
One potential outcome might be a greater emphasis on partnerships. Instead of building from the ground up, banks might collaborate with companies like Wise or Revolut on white-label solutions, co-branded services, or new technology integrations. This approach could allow banks to retain their brand loyalty and scale while providing customers with the modern, user-friendly interfaces they crave. For example, if HSBC integrated aspects of Zing’s technology via direct partnerships with outside fintechs, it could theoretically offer the best of both worlds: robust bank-grade security and compliance, plus agile, cutting-edge features that match or exceed stand-alone fintech platforms.
In the end, Zing’s closure stands as a cautionary tale for incumbents venturing into fintech. The multi-currency account space is fiercely competitive, and customers have shown they will vote with their wallets—or in this case, their apps—for the best combination of speed, transparency, and low fees. The standards set by Revolut, Wise, and other fintech pioneers are high, and any new entrant must bring a differentiated offering to stand out. Merely reproducing the same functionality without a significant innovation or cost advantage is unlikely to succeed.
As HSBC moves on from this experiment, the bank will focus on its core business lines and look to streamline operations in line with Georges Elhedery’s vision. But even as Zing’s brand name fades, the issues it confronted—digital transformation, compliance challenges, cultural inertia, and stiff competition—will continue to confront every major bank in the coming years. Ultimately, if big banks hope to thrive in this new financial landscape, they may need to learn from Zing’s short but instructive life, adapting their strategies to become more flexible, user-focused, and ready to innovate. Whether that means more alliances, targeted acquisitions, or deeper cultural overhauls remains to be seen. What is certain, however, is that the quest to rival Wise and Revolut in multi-currency solutions is far from over—and Zing’s story will likely be revisited as the sector evolves.