HSBC's App Missed Targets Before Bank Ditched It

HSBC's decision to discontinue its Zing app, just over a year after its launch, highlights the challenges faced by new entrants in the competitive digital money transfers market. The app, which offered multicurrency accounts and money transfers, struggled to meet specific targets related to security and user experience, ultimately leading to its closure.



The HSBC app was failing to meet targets related to security and user experience before its discontinuation. The app was crashing on Android phones due to two conditions: the default keyboard not being selected and other apps having accessibility permissions. This led to a poor user experience, as users were unable to access the app or perform basic functions. The app's failure to meet these targets resulted in low user satisfaction, as evidenced by the HSBC Singapore app's rating of 1.4 stars on Google Play. Additionally, HSBC's handling of the situation was criticized for being haphazard and not effectively communicating the reasons for the app's crashes to users.



The strategic review of the HSBC Group, announced in October 2024, played a significant role in the decision to close the Zing app. The review aimed to streamline the bank's operations and focus on areas where it had a clear competitive advantage. As part of this review, HSBC decided to close Zing and integrate its underlying technology platform into the main HSBC business. This decision was made after careful consideration and was part of the bank's broader strategy to increase leadership and market share in key areas (Source: HSBC spokesperson's statement).

Other factors that contributed to the decision to close the Zing app include:

1. Competition in the market: Zing directly competed with major players like Wise and Revolut in the digital money transfers and multicurrency account space. The intense competition in this market made it challenging for Zing to gain a significant foothold and attract a large user base (Source: Financial News report).
2. Cost savings: The closure of Zing is expected to result in cost savings for HSBC. The bank has not yet disclosed the exact figure for these savings, but it is expected to be announced alongside its 2024 financial results in February 2025 (Source: HSBC's October 2024 announcement).
3. Changes in strategic business priorities: The closure of Zing is part of a broader shift in HSBC's strategic business priorities. The bank is focusing on areas where it has a clear competitive advantage and where it has the greatest opportunities to grow and support its clients (Source: HSBC spokesperson's statement).

In conclusion, the closure of HSBC's Zing app highlights the challenges of launching new products in the digital-first consumer money transfers space, particularly when competing against established players like Wise and Revolut. To succeed, new entrants must focus on market differentiation, customer acquisition and retention, strategic positioning, regulatory compliance, and effective communication and support. Additionally, they must be prepared to invest time and resources into building a strong customer base and refining their products over the long term.