HSBC to Launch a Global Currency Conversion App to Compete Against Wise
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Banking giant HSBC is looking to launch a new app known as Zing. This app will support international payments at a lower cost and will initially be available to HSBC customers in the UK.
The launch of Zing marks yet another initiative by traditional banks to attempt and compete against other fintechs like Revolut and Wise.
HSBC Launches Zing
HSBC customers in the UK will initially access the Zing financial app on Android and iOS devices. The app will also launch in UK app stores in the coming days. It will also launch in other countries during the year.
HSBC is the largest bank in Europe, with 13.5 million active customers in the UK. According to Nuno Matos, the CEO of HSBC’s global wealth and personal banking business, the bank launched Zing to compete in the payments market.
While speaking to Bloomberg, Matos noted that HSBC planned to establish itself as a global payments platform. He further said it planned to expand its services across other markets such as Asia, the Middle East, and the European Union.
HSBC also allows its banking clients to access another service known as Global Money that does not charge any fee. This platform went live in 2020 and is already used by hundreds of thousands of clients.
According to Matos, Zing’s launch is a bold move for HSBC. He noted that the launch demonstrated that the bank was exploring offerings beyond the traditional banking ecosystem to benefit its customers.
“This is HSBC playing outside its traditional perimeter of customers and really attacking, if you want, of taking advantage of a contingent, which is big, is growing, looks like us, and it’s here for us,” Matos opined.
Competing Against Fintechs
HSBC is launching Zing to compete against fintech giants such as Wise, which facilitates low-cost global payments for businesses and consumers.
Wise is among the most successful fintechs in the UK. It has grown considerably over the past ten years, with more than six million active users. The platform transacts over £25 billion every quarter.
Wise claims that the number of monthly users increases by 10,000 each month. This growth points to increased demand for these services, which HSBC plans to tap into. Traditional banks have often struggled to compete against fintechs, which appeal to digital-savvy customers because of their technological capabilities.
