HSBC's international cross-border payments app, Zing, launched in January 2024, is slated for closure, as reported by Financial News. Zing, HSBC's Fintech venture, launched with the ambitious goal of disrupting the international payments market and rivaling established Fintech players like Wise and Revolut. Despite a significant investment of $150 million in its development, Zing failed within a year. And although the product didn't take off, those huge investments won't be wasted if the industry analyzes this case and learns from it properly.
All posts and comments on this matter agree: large banks struggle to implement innovations, fail to compete effectively with fintech, and lack the flexibility needed to adapt. This perspective is clear, obvious, and supported by numerous examples. However, viewing this as a doomed effort is overly simplistic—and incorrect. There are successful cases, such as Liv by Emirates NBD, Mox by Standard Chartered, and others, that prove otherwise. Yes, it’s undeniably challenging for a large bank to launch and sustain a fintech initiative, but it’s not impossible. What’s far more interesting than pointing fingers and declaring failure is understanding how success can be achieved.
HSBC explained the closure of Zing as a strategic simplification and priorities change, but if the project had shown impressive traction, it is unlikely that everything would have ended up like this. The Zing app was created to complement HSBC's Global Money experience, catering to its international wealth and personal banking clients, while also aiming to attract non-HSBC users to expand the bank's traditional customer base.
Recognizing HSBC’s Ambitious Leap into Fintech
While Zing’s journey ultimately ended in closure, it is important to acknowledge and commend HSBC for its bold effort in creating a next-generation banking experience. Launching Zing was an ambitious and strategic attempt to address the rapidly evolving demands of a digital-first audience and compete with nimble Fintech disruptors:
1. A Willingness to Innovate
HSBC demonstrated a strong commitment to innovation by investing $150 million in Zing and committing substantial resources to its development. Zing is the result of a more than two-year plan for HSBC to make a mark on Fintech. This move demonstrated the bank’s recognition of the changing financial landscape and its determination to adapt. By creating Zing as a standalone entity, HSBC sought to build a modern, agile Fintech product that could transcend the constraints of traditional banking operations.
2. Building for the Future
Zing was not just an incremental improvement but an ambitious effort to reimagine how international banking could work. From multi-currency accounts to low conversion fees and real-time exchange rates, Zing incorporated advanced features designed to meet the needs of a global, digitally-savvy audience. The decision to structure Zing as a separate entity under an e-money license showed HSBC’s willingness to experiment with innovative models and adapt its regulatory strategies.
3. Technical Excellence
Zing’s 4.8-star rating in app stores is a testament to the technical execution behind the app. Customers recognized the platform’s smooth, intuitive interface and reliable functionality, which reflected a high level of design and engineering quality. These attributes highlight HSBC’s ability to deliver a user-friendly experience in a highly competitive Fintech market.
4. Taking Calculated Risks
HSBC’s effort to create Zing indicates a forward-thinking mindset, taking calculated risks to explore uncharted territories. This willingness to invest heavily in Zing and explore new business models reflects a strategic approach to future-proofing the organization in a rapidly changing financial services industry.
5. Commitment to Customer-Centric Innovation
Zing’s offerings—such as the ability to hold accounts in 20 currencies and its real-time exchange rates—showed HSBC’s genuine effort to meet customer needs for transparency, convenience and global functionality. The launch of Zing aligned with HSBC’s broader strategy to focus on customer-centric innovation, as evidenced by the extensive research and external expertise brought into the project.
Analysis of Zing’s Failure: Missing Digital Brand Experience
HSBC’s $150 million investment in Zing was intended to deliver a competitive, scalable platform that could quickly capture market share. The app’s offerings, such as holding accounts in 20 currencies and a Visa debit card with low conversion fees, were comparable to Wise and Revolut. However, these features lacked differentiation, and Zing did not achieve significant customer adoption.
HSBC hoped to gain a foothold in the lucrative cross-border payments sector. In contrast, Zing attracted only 30,000 users within months, compared to 1.1 million monthly downloads for Revolut and 203,000 for Wise, highlighting its inability to meet its ambitious goals.
Why did HSBC's ambitious attempt to disrupt the cross-border Fintech payments market ultimately fail, despite a significant investment and costly technical implementation partnering with Visa’s multi-currency card? Let's analyze the reasons for the collapse of Zing from the perspective of the Digital Experience Branding approach used by UXDA to design next-gen financial products:
1. Lack of Authentic Brand Identity and Emotional Resonance
One of the core tenets of the Digital Experience Branding approach by UXDA is the importance of an authentic and emotionally resonant brand identity. Zing’s failure highlights its inability to establish such an identity. While the app promised competitive features like low transaction fees and multi-currency functionality, these offerings lacked a cohesive brand narrative.
Wise and Revolut, by contrast, are deeply anchored in their missions: Wise fights hidden fees with bold campaigns, while Revolut positions itself as a lifestyle brand, integrating financial tools into aspirational experiences. Zing’s generic messaging, such as “Live your best international life,” failed to evoke emotional connection or trust. It lacked the bold, purpose-driven campaigns that Fintech leaders used to create advocacy and loyalty.
This stands in stark contrast to Wise’s high-impact campaigns (e.g., “Nothing to Hide”) and Revolut’s gamified and community-driven approach. Customers were left wondering what Zing truly stood for, eroding trust and loyalty in the brand.
HSBC anticipated that Zing’s brand would attract non-HSBC customers who were seeking a fresh, innovative financial experience. Instead, Zing failed to connect emotionally with both HSBC’s existing customer base and potential new users, leaving its identity indistinct and its promise unfulfilled.
2. Playing Catch-Up Instead of Innovating
Zing fell into the trap of mimicking its competitors without offering innovative, future-forward solutions. UXDA's Digital Experience Branding approach emphasizes the need for differentiation and transformation.
Zing’s approach mirrored Wise and Revolut’s basic features without offering any groundbreaking innovation. Instead of leveraging HSBC’s legacy strengths, Zing attempted to replicate its competitors’ models, including multi-currency accounts, real-time rates and debit cards. However, these features were already perfected by its rivals, leaving Zing as an undistinguished latecomer to the market.
Innovative features like rapid onboarding, AI-enhanced insights, instant low-fees transfers and cryptocurrency options—hallmarks of Wise and Revolut’s forward-looking strategies—were conspicuously absent. Zing had the opportunity to leverage HSBC’s legacy and expertise in international banking to create unique features, such as seamless integration with HSBC accounts, exclusive perks for HSBC customers or innovative AI-driven financial tools. Instead, the company introduced a product that was a weak copy of Fintech competitors' products, resulting in poor product-market fit.
3. Unclear Audience and Ignoring the Power of Community
Zing’s unclear audience segmentation further diluted its impact. Unlike Wise, which targets cost-savvy global citizens, and Revolut, which appeals to tech-savvy millennials with lifestyle features, Zing attempted to attract a broad, undefined user base.
This lack of focus confused HSBC’s existing customers, who saw little incentive to use Zing instead of HSBC’s core services. Furthermore, Wise and Revolut’s customers—already loyal to those platforms—had no reason to switch to a latecomer like Zing, especially one with higher fees and slower services.
Neobanks like Revolut thrive on community engagement and viral marketing. Zing neglected this critical Digital Experience Branding principle. Features such as referral bonuses, user communities and gamified engagement were poorly executed in its offerings. In contrast, Wise and Revolut continuously build user advocacy through features that encourage sharing and collaboration, such as peer-to-peer payment tools and financial tracking, which foster a sense of community.
4. Overlooking Dopamine Design Principles
Despite being technically well-executed (as evidenced by its high App Store ratings), Zing lacked the delightful experience essential for creating dopamine-driven engagement, which we call "Dopamine Banking." Zing’s failure highlights its inability to leverage the Digital Experience Branding approach through emotional design, personalized experiences and innovative features. Zing’s interface, while functional, fails to deliver a valuable brand promise to differentiate itself from competitors like Wise and Revolut.
Instead of creating excitement through vibrant visuals, gamification and community-driven engagement, Zing delivered a purely functional experience that felt uninspired. The absence of adaptive interfaces and personalized financial insights further eroded its appeal, leaving users without the tailored, rewarding experiences they expect from modern Fintech apps.
Additionally, Zing missed opportunities to create "lovable things" that exceed customer expectations. Without a strong narrative or emotional connection, Zing struggled to resonate with its audience. While its technical execution was solid, Zing’s failure to provide a cohesive, dopamine-fueled user journey led to disengaged customers and an obscure brand, ultimately making it indistinguishable in a market dominated by emotionally intelligent Fintech disruptors.
5. Operational and Experience Failures
Zing was marred by operational inefficiencies and poor customer service, which eroded trust and drove negative reviews:
- Delayed account approvals: Many users complained that their applications were stuck in a prolonged review process, with some waiting weeks to months for approval, even if they were existing HSBC customers.
- Blocked transactions without clear explanations: Complaints surfaced about money being held or returned without proper communication. Customers reported being asked for additional documentation but receiving inconsistent responses from support.
- Slow transfers: Zing’s promise of instant transactions was contradicted by reports of delays spanning 1-2 business days, even for Zing-to-Zing transfers.
- High fees: Despite marketing claims of competitive fees, intermediary bank charges eroded cost effectiveness, with one customer citing a 9% fee deduction on international transfers.
These complaints painted a picture of a service riddled with technical and procedural inefficiencies, undermining user confidence and loyalty. In contrast, Wise and Revolut provided seamless, predictable experiences that fulfilled their brand promises. The app’s poor user feedback reflected a stark gap between its promise and delivery:
- Sign-up issues: Many users were locked out of the app due to complex identity verification requirements.
- Customer service failures: Without direct support channels or clear resolutions, users were left frustrated and distrustful.
- False starts with transfers: Zing’s inability to meet promised transfer timelines disappointed customers who relied on speed and efficiency.
These issues directly contradicted the core principles of Dopamine Banking, which emphasizes seamless and delightful user experiences.
6. Strategic Misalignment
Traditional banks like HSBC often struggle with aligning disruptive innovations with their core operations. Zing’s struggles with compliance restructuring highlighted the challenges of embedding innovation within a legacy organization. HSBC’s complex compliance requirements delayed international expansion and stifled the app’s ability to scale quickly. Additionally, the organizational silos within HSBC likely slowed decision-making and innovation compared to the agile structures of Fintechs.
UXDA's Digital Experience Branding approach highlights that startups and neobanks benefit from their lean, risk-taking structures, enabling them to innovate rapidly and pivot based on user feedback. Zing’s slow processes—evident from customer complaints about delayed registrations and blocked accounts—exemplify how HSBC’s legacy systems undermined Zing’s ability to compete in a fast-paced market.
7. A Poor Product Launch
Zing's failure highlights the critical importance of a strong launch strategy with robust product QA, testing and feedback mechanisms during the pre-launch, launch and post-launch phases. While the app boasted technical excellence, user reviews revealed numerous operational and technical shortcomings, such as prolonged registration times, delayed transactions and inconsistent customer support. These issues could have been mitigated through comprehensive testing and iterative improvement processes before scaling to a wider audience.
Global best practices suggest starting with a controlled rollout to small, diverse user groups, enabling teams to identify and resolve technical and usability issues early. Zing lacked a well-structured feedback loop to collect and act on user insights systematically, a hallmark of successful Fintech products.
By failing to prioritize ongoing product improvements based on real-world user data and feedback, Zing missed the opportunity to refine its offering and align with customer expectations. Without this iterative process, even a technically sound product risked disappointing users at critical touchpoints, ultimately jeopardizing trust and loyalty.
Takeaways for Traditional Banks
Zing’s failure underscores the importance of moving beyond good UX to create a distinctive, purpose-driven product. For traditional banks like HSBC to succeed in the Fintech arena, they must:
- Build an Authentic Brand: Develop a clear, purpose-driven, emotionally resonant brand identity and narrative that differentiates itself from competitors to build trust and loyalty.
- Operational Excellence Matters: Customers expect Fintech-grade efficiency, speed and reliability, which legacy institutions must replicate to compete in the marketplace.
- Leverage Existing Strengths: Integrate new products with core banking services to create unique value.
- Innovate, Don’t Imitate: Success comes from creating value in new ways, not from duplicating existing features. Use cutting-edge technology and user-centered design to create features that exceed expectations.
- Focus on Community and Advocacy: Increase user engagement through gamification, rewards and social community features.
- Embed Dopamine Design Principles: Transform mundane financial tasks into delightful interactions to keep users engaged.
- Align Vision and Execution: Banks must reconcile their innovation goals with the constraints of legacy systems and internal politics.
Zing’s failure highlights the pitfalls of chasing Fintech disruptors. It serves as a cautionary tale: traditional banks must rethink their approach to Fintech, not by copying disruptors, but by reimagining how they deliver value in a digital-first world.
Final Thought
While Zing ultimately didn’t achieve its intended success, HSBC’s initiative highlights the importance of traditional banks embracing change. The lessons learned from Zing’s journey will undoubtedly inform future projects, allowing HSBC to refine its approach to innovation and better align with customer expectations.
Zing’s story is not one of lack of effort but of strategic missteps. Despite its financial and technical backing, the app could not carve out a distinctive identity or deliver on its promise. For traditional banks to thrive in the Fintech era, they must embrace authentic brand experiences, prioritize customer-centric innovation and align operational capabilities with disruptive ambitions. Otherwise, the gap between their offerings and the expectations set by Fintech disruptors will only widen.
However, this attempt was a commendable leap forward, showcasing HSBC’s vision and ability to compete in a space traditionally dominated by nimble, tech-first startups. Zing’s legacy should not be seen solely as a failure, but as a stepping stone in HSBC’s journey to redefine its role in a rapidly evolving Fintech landscape. By continuing to invest in bold, customer-focused innovation, HSBC can leverage these experiences to lead the charge in creating banking solutions that resonate with the next generation of users.
Get UXDA Research-Based White Paper "How to Win the Hearts of Digital Customers":
If you want to create next-gen financial products to receive an exceptional competitive advantage in the digital age, contact us! With the power of financial UX design, we can help you turn your business into a beloved financial brand with a strong emotional connection with your clients, resulting in success, demand, and long-term customer loyalty.
- E-mail us at info@theuxda.com
- Chat with us in Whatsapp
- Send a direct message to UXDA's CEO Alex Kreger on Linkedin
