HSBC invested $150 million in Zing to take on fintech giants like Wise and Revolut by simplifying cross-border payments.
Yet despite the strong backing, the app is shutting down.
The app struggled with fraud control, compliance rules, and financial regulations. HSBC launched an internal initiative, Project Green, to address these challenges, but large banks often move slowly when adapting to regulatory demands. Unlike fintech startups, which build compliance into their frameworks from the start, HSBC had to retrofit its systems, causing delays and operational hurdles.
As a result, HSBC is discontinuing Zing, affecting around 400 jobs, primarily in customer support roles. Rather than keeping it as a standalone app, the bank plans to integrate Zing’s technology into its existing services, meaning some of its features may still be used in the future.
This article explores what Zing set out to achieve, the key challenges that led to its shutdown, and the lessons fintech companies in the UAE can take from its experience.
HSBC launched Zing to compete with fintech leaders like Wise and Revolut, aiming to simplify cross-border payments.
The app offered multi-currency accounts, real-time exchange rates, and low conversion fees. Users could hold funds in different currencies and send money to over 200 countries in more than 30 currencies, making international transactions more accessible.
Unlike traditional banking, Zing targeted a broader audience, including non-HSBC customers, by providing direct access to global payments without requiring a checking or savings account.
To accelerate development and enhance features, HSBC partnered with Visa, Currencycloud, and Tink, integrating top financial technology into the platform.
On paper, Zing seemed like the ideal blend of banking security and fintech efficiency – a trusted name with the agility of a digital-first app. But despite its strong foundation, it struggled to gain traction.
Despite its strong backing and promising features, Zing struggled to establish itself in the market. Compliance hurdles, slow user growth, and strategic shifts within HSBC all contributed to its downfall. Here’s what ultimately led to its shutdown:
Like any financial app, Zing had to meet strict anti-money laundering (AML) and fraud prevention regulations. HSBC launched Project Green to strengthen fraud controls and ensure compliance, but large banks don’t move as fast as fintech startups. Every update had to pass through multiple layers of approvals, slowing progress.
Unlike fintech startups that build compliance into their foundations, Zing had to retrofit its systems, causing costly delays that stunted growth.
For Zing to succeed, it needed a large user base. HSBC projected 12,000 active users per month, but by December, only 8,736 had signed up, falling short of expectations.
Competing with Wise and Revolut was an uphill battle. Many users were already loyal to these platforms, making it difficult for Zing to carve out its own audience. Without strong adoption, HSBC saw little justification for further investment.
Despite a $150 million investment, HSBC opted to integrate Zing’s technology into its core banking services rather than maintain it as a separate product.
Users don’t switch financial apps without a strong incentive. Zing struggled to stand out against established players like Wise and Revolut, which already had trust and a loyal customer base.
Without a clear value proposition, it became just another option in an already crowded market.
Zing’s failure underscores important lessons for fintech companies, particularly in fast-growing markets like the UAE, where evolving regulations and strong competition make adaptability essential. To avoid similar pitfalls, fintechs should focus on the following:
Zing’s biggest challenge was regulatory delays. Instead of reacting to compliance requirements later, fintechs should embed compliance frameworks from the start.
Actionable Takeaway: Fintech startups should prioritize regulatory readiness early on by working with compliance experts, adopting modular fraud detection systems, and ensuring their infrastructure can quickly adapt to changing AML laws.
Instead of spending three years in development before launching, Zing could have benefited from early user testing. Wise and Revolut iterated based on real-world feedback, allowing them to refine their platforms continuously.
Actionable Takeaway: Fintechs should launch a minimum viable product (MVP) early and gather user feedback through beta testing, focus groups, and iterative rollouts to ensure their product aligns with real customer needs.
Zing struggled to stand out because it didn’t offer a compelling reason for users to switch from Wise or Revolut.
Actionable Takeaway: Instead of copying existing models, fintechs should identify underserved market segments or offer features that incumbents lack (e.g., better FX rates, localized solutions, or deeper integrations with business tools).
HSBC ultimately shut down Zing because it wasn’t cost-effective to maintain as a separate entity.
Actionable Takeaway: Fintechs should regularly evaluate whether their product is scalable without continuous heavy funding. Sustainable monetization models (e.g., subscription-based premium features, B2B partnerships, or tiered pricing structures) can help avoid overreliance on external investment.
Building a fintech product takes more than just a big name and a solid idea. It requires agility, regulatory foresight, and a product that truly meets user needs.
HSBC invested heavily in Zing, positioning it as a competitor to Wise and Revolut. But as its shutdown shows, even well-funded projects can fail without the right market positioning, regulatory strategy, and user adoption.
For fintechs in the UAE, the opportunity is still wide open. The demand for innovative payment solutions continues to grow, but success depends on navigating regulations effectively, differentiating from competitors, and adapting quickly to market shifts.
At Ripae, we understand the complexities of modern financial services. Our team is dedicated to helping businesses build secure, scalable, and future-ready payment solutions that stand the test of time.
Looking to strengthen your fintech strategy? Get in touch with our experts at Ripae and discover how we can support your business.
