HSBC has announced the closure of its international payments app Zing, marking another setback in the bank's fintech expansion efforts, just 12 months after its launch.

The digital payments platform, which promised "transparent fees and competitive rates", will be shut down following challenges with compliance restructuring and a strategic review by the bank's new group chief executive officer Georges Elhedery.

Sources familiar with the matter suggest approximately 400 jobs could be at risk, including a substantial number of non-HSBC external customer support staff. The bank is expected to inform affected employees from Thursday.

Launched in January 2024, Zing allowed customers to hold money in more than 20 currencies with conversion fees as low as 0.2 per cent. The app was designed to compete with fintech rivals like Wise and Revolut, which have been eroding traditional banks' market share in foreign exchange services.

By mid-2024, Zing had attracted around 30,000 customers and was planning European expansion, with initial plans to enter the Netherlands market. However, internal documents reveal these expansion plans have now been abandoned.

"Management interest in building out Zing to mount a serious challenge to competitors has waned," said a source close to the bank's operations.

The closure comes as part of Elhedery's broader strategy to streamline costs and improve organisational efficiency. The chief executive officer has been actively seeking to exit non-core business lines since taking the helm in September 2024.

Zing's troubled trajectory mirrors HSBC's previous fintech challenges. Last September, the bank wrote off its $35 million investment in Monese, another digital banking venture that struggled to secure additional funding.

The app was built using the banking platform of XYB, with HSBC recruiting talent from various fintech firms including Monese, Revolut, Wise, and Monzo before its launch.

Senior staff departures have already begun, including senior treasury manager Dario De Angelis, formerly of Revolut, and design lead Joe Allison.

HSBC is yet to comment on the specific details of Zing's closure.

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