HSBC Shuts Down Zing App After Failing to Meet Engagement Targets
HSBC has announced the discontinuation of its Zing app—a digital banking platform launched in January 2024—after the service failed to achieve its internal benchmarks for active user engagement. The decision, confirmed by HSBC and reported by the Financial Times, comes as part of a broader trend of established banks reassessing standalone fintech ventures amid stiff competition from agile digital startups.
Zing’s Launch and Performance
Zing was introduced as part of HSBC’s strategy to tap into a younger, tech-savvy demographic and to compete with digital-first banking services such as Revolut and Wise. The app was designed to offer streamlined foreign exchange and cross-border payment services, with an initial target of 12,000 monthly active users set as a critical performance metric. By mid-December 2024, Zing had attracted nearly 131,000 registered users, yet only 8,736 of these remained active on a monthly basis.
Reuters noted that this significant shortfall in user engagement underlined the challenges HSBC faced in carving out a niche in a market increasingly dominated by nimble fintech startups.
Industry Context and Comparable Cases
HSBC’s struggle with Zing is not an isolated case. Similar initiatives by other traditional banks have met with mixed results. For instance, NatWest discontinued its digital bank, Bó, in 2020 after a short operational period, while Barclays ended its mobile payments service, Pingit, amid similar challenges. Bloomberg reported that legacy banks often grapple with legacy systems, slower onboarding processes, and a lack of agility compared to fintech competitors.
Simon Taylor, co-founder of consultancy 11:FS, commented in a recent Bloomberg interview, “Traditional banks often try to replicate the successes of fintech firms like Wise, but without genuine innovation or a distinct revenue model, these efforts are hard to sustain.”
Internal Review and Future Strategy
According to internal communications detailed by the Financial Times, HSBC had planned an ambitious expansion for Zing across multiple continents. However, with the app’s performance falling short of expectations, HSBC decided to limit its operation to the UK market before ultimately decommissioning the platform by May 2025. This move aligns with HSBC’s “simplification” strategy announced in October 2024, aimed at streamlining operations and focusing resources on core banking services.
A Reuters report highlighted that the shutdown is seen as a pragmatic step by HSBC to cut losses and reallocate investment towards more promising digital innovations.
Challenges in Digital Transformation
The Zing app’s fate underscores broader challenges in digital transformation for legacy financial institutions. The BBC has noted that traditional banks often struggle with rapid technological changes and regulatory hurdles that can hamper their ability to compete with nimble fintech start-ups. HSBC’s experience with Zing reflects these structural difficulties, particularly in customer onboarding and user engagement.
Pierre Legrand, managing director at Alvarez & Marsal, told The Guardian, “HSBC’s attempt with Zing, while ultimately unsuccessful, is part of the necessary learning curve for large institutions trying to adapt to the digital age. The key is to harness these lessons and apply them to future projects.”
Looking Ahead
Despite the setback with Zing, HSBC remains committed to its digital transformation journey. Analysts from CNBC have expressed optimism that the lessons learned from Zing will help HSBC develop more robust and customer-focused digital solutions in the future. By re-evaluating its digital strategy, HSBC aims to better integrate technology with its traditional banking strengths, ensuring long-term competitiveness in an evolving financial landscape.
As HSBC moves forward, industry observers will be watching closely to see how the bank leverages its extensive resources and global footprint to innovate while overcoming the legacy challenges that have hindered many of its fintech ventures.
