The Launch of Zing
In January 2024, HSBC ventured into the competitive fintech arena with the launch of Zing, an international payments platform. Built on a $32-million tech stack acquired from British fintech company Monese, Zing aimed to rival fintech competitors like Wise and Revolut. Overseen by HSBC’s then Head of Wealth and Personal Banking, Nuno Matos, Zing targeted younger demographics, including international students and expatriates, with plans to expand into multiple continents by the end of 2024.
Zing’s strategy mirrored successful fintech products, even allegedly recruiting talent from its rivals.
- Wise reported a 229% rise in pre-tax profits to £481 million in its latest annual accounts up to March 2024.
- Revolut achieved a $45 billion valuation in August 2024.
Strategic Shifts and Abrupt Closure
Initially, Zing experienced promising growth, attracting 30,000 users within its first six months. To fuel this momentum, a referral program introduced in July offered £20 for each successful user referral, capped at £400. Over subsequent months, both the reward and cap were increased to further boost user acquisition.
Despite this early momentum, Zing never expanded beyond the UK as planned. Shortly after its first anniversary, the platform was abruptly shut down. HSBC attributed the closure to the bank’s “simplification” strategy, with plans to integrate Zing’s technology into the broader HSBC framework.
While official statements emphasized resource reallocation and market prioritization, internal sources revealed that internal politics and management conflicts—rather than Zing’s underperformance—were the main drivers behind the decision. Zing’s independent and ambitious vision increasingly clashed with HSBC’s evolving corporate strategies, leading to its sudden closure.
Internal Changes and Turmoil
The downfall of Zing can largely be attributed to shifting corporate priorities during its brief existence. Initially developed with considerable independence from HSBC and open to non-HSBC customers, the platform pursued ambitious global expansion plans. However, as the launch date of Zing approached, differing perspectives emerged regarding its strategic direction, undermining Zing’s original vision.
Key internal changes that influenced Zing’s closure:
Supporters of Zing’s discontinuation included former HSBC COO Ritesh Jain, who criticized Zing for its lack of innovation, arguing that it merely replicated existing fintech products without offering distinct value. This failure to differentiate made it difficult for Zing to obtain a competitive edge.
Additionally, Zing’s aggressive expansion plans created internal friction:
- Some executives advocated for cautious growth within the UK.
- Others pushed for rapid international expansion to secure market share.
A Recurring Trend in Fintech
Zing’s short-lived story marks yet another setback for traditional banks struggling to break into the fintech space.
Other similar failures include:
- NatWest’s Bó, which folded after only six months in 2020.
- Barclays’ Pingit, which closed in 2021.
Beyond the financial losses, Zing’s closure also reportedly led to the loss of about 400 jobs. Zing’s brief journey highlights the challenges legacy banks face in adapting to the fast-evolving fintech landscape.
This recurring trend serves as a stark reminder that success in fintech requires significant investment, innovation, clear strategic focus, and unwavering commitment.