Just 12 months after its launch, HSBC announced the closure of international payments app Zing in January 2025. FStech news editor Alexandra Leonards explores what might have led to the platform’s early demise and asks whether this is indicative of a more cautious approach from incumbents going forward in an increasingly uncertain looking financial landscape.

When HSBC announced the launch of Zing in January 2024, the chief executive of the bank’s global wealth and personal banking business admitted that attempting to establish a global platform for international payments was a bold move in a market dominated by younger FinTechs.

“This is HSBC playing outside of 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,” said Nuno Matos, the bank’s former wealth chief who exited the business several months later as part of a broader shakeup under new boss Georges Elhedery.

Despite taking on the risky challenge of competing with the likes of Wise and Revolut, who continue to dominate the foreign exchange market, Matos said the bank was confident that “very soon” after launching Zing in the UK it would be rolled out to Asia, the Middle East, and the European Union.

Given the explosive growth of the aforementioned likes of Wise, Revolut and others, it’s easy to see why HSBC wanted in on a cross-payments market that sees trillions move across borders every year.

But after multiple years in development, and only one year on the market, HSBC abruptly axed the platform that had not so long ago held great promise for the institution.
In a statement the bank said that “following a strategic review within the HSBC Group, we have made the decision to close Zing and integrate its underlying technology platform into HSBC.”

The move came after HSBC faced another setback for its FinTech expansion efforts when it wrote off a $35 million investment in digital banking venture Monese, which struggled to secure additional funding.

Zing’s closure forms part HSBC’s broader plans to cut costs and boost efficiency across the organisation under the helm of the newly appointed Georges Elhedery. Since taking on the role in September 2024, he has been actively finding ways to exit non-core business lines and honing the bank’s focus on the Asian market.

Although this strategy alone cannot be solely attributed to the bank’s focus on consolidation, it is important to consider the broader context. Just twelve months ago, Zing was projected to achieve international success and if it had been as successful as anticipated by the bank, it is unlikely that it would have been shut down at such an early stage.

One obvious reason why establishing a platform like this would have been a challenge for HSBC, is that improving cross-border payments for global consumers is a particularly difficult problem to solve. It involves running a global banking network, strong treasury, localised compliance, and efficient operations—all of which cost money.

The success of Wise did not come overnight; the company has been investing in this infrastructure for 14 years. It’s powered by six direct integrations to domestic payment systems and a global network of local gateway banks, which has allowed it to drive down the price of sending money across borders.

Cross-border services must also meet a broad customer base, and legacy institutions are often slower, more expensive, and burdened by outdated systems not designed for those modern, global consumers.

HSBC’s lack of experience here may have been the reason why by mid-2024 only 30,000 customers had joined the platform. It’s a respectable number but not particularly impressive given the bank’s UK customer base of nearly 15 million.

This is perhaps why management interest in building out the platform to mount a serious challenge to competitors waned in the end, which a source close to the matter told Reuters last week.

“The plight of Zing is a common tale of traditional banks battling to keep up with the flexibility and innovation of their startup competitors,” says Laurent Descout, chief executive of Spanish cross-border payments and FX FinTech Neo. “It is often the case that traditional banks are unable to match the appeal of FinTechs from faster onboarding and transparent fees with their digital app services.”

He says that, more importantly, traditional banks lack the “FinTech culture” which is client and solution driven.

Kristin Reischel, senior director of solutions & partner marketing at FX company Rapyd, agrees that the culture within challenger FinTech companies is another critical differentiator.

“Unlike traditional banks, which can be bogged down by layers of bureaucracy, FinTech companies thrive on agility, innovation, and technology,” she says.

Ultimately, she explains, people working in FinTechs tend to be more motivated by creating better customer experiences and embracing technological advancements, rather than “adhering to the status quo.”

“While FinTechs are putting the hours in and constantly redefining their services, it is not enough for traditional banks to think of a catchy name and slick website,” continues Neo’s chief exec. “They must address issues of onboarding delays and poor client service if they want to succeed.”

The closure also came amidst challenges with a complex compliance restructuring at Zing. Compliance is high on the agenda in the market, which has in recent years seen regulators around the world heightening requirements for cross-border transactions – driving up costs and risk mitigation for companies.

“Getting compliance teams right is essential and having them working close to operation teams is critical, however, the practicality of doing so is not always straightforward,” adds Neo’s Laurent Descout. “For legacy firms it can be extremely difficult to balance changing regulations and innovative new products against existing compliance structures, internal politics and risk-averse models.”

Given the structured nature of banks like HSBC, it is understandable why this factor contributed to the platform’s decline.

The overall market reaction to the closure of Zing has not spared HSBC its blushes. In a somewhat damning summation of the division's short-lived existence, leading research firm Global Data branded Zing “a $150 million innovation misstep”.

Joanne Kumire, lead banking and payments analyst at GlobalData, wrote in a review: “The app’s concept may have been sound, but its execution was flawed from the start. Existing customers were forced to undergo re-KYC, an unnecessary hurdle. The product itself was incomplete, failing to offer meaningful differentiation from Wise or Revolut.

“Worst of all, HSBC spent over three years developing Zing before engaging with real users, sinking more than $150 million before generating any revenue. In contrast, Wise and Revolut had already captured the market by rapidly iterating their platforms, expanding globally, and building deep customer loyalty.”

FinTech companies in the industry inherently possess an advantage over their traditional counterparts due to their ability to swiftly adapt, evolve compliance procedures, and align them with regulatory changes and technological advancements.

The case of HSBC’s Zing demonstrates that traditional banks aren’t yet ready to address the pain points that have driven their FinTech rivals to be developed in the first place. While incumbents are trusted for their longstanding histories and infrastructure, the faster, customer-centric, and tech-focused FinTechs are ultimately leading the way in facilitating some of the most important financial services, including cross-border payments, in an increasingly globalised world.

There are valuable lessons to be learned from Zing’s failure-to-launch, suggests GlobalData’s Kumire.

“Banks need to prioritise moving quickly and gathering user feedback early in the process to guide development,” she writes. “Additionally, excessive spending should be avoided until there is clear evidence of product-market fit, and in many cases, partnering with experienced providers may be far more effective than attempting to build everything in-house.”

As 2025 unfolds, Zing's closure signals more than just one bank's failed venture—it marks a potential shift in how traditional financial institutions approach innovation. While the platform’s failure doesn't necessarily reflect hubris from one of banking's giants, it demonstrates that trying to outmanoeuvre specialised FinTechs on their own ground may be fundamentally misguided - especially when partnership opportunities could offer a more promising path forward.

Some banks are already exploring this route, with JPMorgan's recent partnerships with FinTech platforms and Santander's investment in collaborative payment technologies suggesting a new model emerging: one where banks provide the foundational infrastructure and regulatory expertise, while FinTechs deliver the customer-facing innovation. This collaborative approach could reshape the competitive landscape, turning today's rivals into tomorrow's strategic allies.

The key to future success may lie not in trying to beat FinTechs at their own game, but in leveraging existing strengths through strategic partnerships, measured innovation, and a more agile approach to product development. As the financial services industry continues to evolve, finding this balance between innovation and pragmatism will be crucial for traditional banks seeking to maintain their relevance in an increasingly digital world.

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