Highlights:

  • The introduction of Zing positions the financial services giant to better contend with the increasing competition from smaller rivals.
  • According to a Bloomberg report last month, the company’s average monthly revenue reached over USD 150 million in the first half of 2023.

HSBC Holdings plc, the largest bank in the United Kingdom, has launched a new consumer finance app named Zing.

The introduction of Zing positions the financial services giant to better contend with the increasing competition from smaller rivals. This new app provides features like those offered by Revolut Ltd. and Wise Payments Ltd., two venture-backed consumer finance providers based in London. The combined revenue of these companies exceeded USD 2 billion in their most recent fiscal year, fueled by a significant increase in user signups.

The app is accessible on both iOS and Android platforms. According to Bloomberg, HSBC plans to roll it out in the U.K. in the coming days, intending to expand its availability to other countries. HSBC has a presence in numerous markets globally.

Zing allows users to hold funds in up to 10 currencies. Despite being operated by HSBC, the app is reported to function not as a bank but rather as an “e-money institution.” Consequently, since Zing is an “e-money institution,” users’ funds are not covered by the Financial Services Compensation Scheme, the U.K. counterpart to the U.S. Federal Deposit Insurance Corp.

In addition to fund storage capabilities, Zing also provides money transfer features. The app empowers users to execute cross-border payments in over 30 currencies. According to Bloomberg, Zing handles transactions using a combination of local financial platforms and the Swift international money transfer system.

Zing Founder and CEO James Allan said, “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.”

HSBC already provides comparable money transfer features through a suite of services known as Global Markets. Nevertheless, these services are exclusively available to consumers who open bank accounts. On the other hand, Zing does not impose such a requirement, potentially allowing HSBC to broaden its market reach.

Should Zing gain popularity, there’s a possibility that the bank may enhance its initial feature set by incorporating additional consumer finance services. Such a strategic move would create other avenues for HSBC to capitalize on the app’s user base. Revolut, which operates a mobile banking app bearing the same name, has implemented a comparable strategy for revenue growth.

In 2022, Revolut reported revenues totaling £850 million. According to a Bloomberg report last month, the company’s average monthly revenue reached £125 million in the first half of 2023. This suggests an annualized run rate of almost £1.5 billion. Revolut is reportedly expanding its user base by approximately 30,000 new users weekly.

Wise, another competitor of Zing, is also undergoing rapid growth. Wise’s revenue surged by 25% year-over-year, reaching over £498.2 million in the six months ending September 30. During the same period, Wise’s profit nearly tripled, reflecting robust financial performance.