HSBC to Shutter International Payments App Zing, Potentially Cutting 400 Jobs
HSBC has made the decision to discontinue its international payments app, Zing, in a move that could result in the loss of approximately 400 positions. This decision aligns with CEO Georges Elhedery's ongoing cost-cutting initiatives aimed at optimizing the bank's operations.
The affected staff will be informed of the redundancy plans from Thursday. The figure of 400 includes a significant number of external customer support personnel. HSBC declined to provide comment on the matter.
Zing, a mobile platform tailored for cross-border payments, was introduced only a year ago. It aimed to cater to UK customers seeking alternatives to fintech competitors like Revolut and Wise, which offer competitive transaction fees. The app was intended to complement HSBC's Global Money product, targeting both HSBC customers and non-customers to expand the bank's reach.
However, since Elhedery assumed the role of CEO in September, management's interest in developing Zing as a formidable competitor has waned. Part of Elhedery's comprehensive overhaul plan involves streamlining costs, enhancing focus, and increasing performance accountability. The source indicated that further investment in Zing was deemed an inefficient allocation of resources.
HSBC has recently witnessed a wave of senior management departures as Elhedery reshapes the organization to achieve greater simplicity and agility. Additional job cuts at lower levels are anticipated in the first quarter, as the bank aims to mitigate earnings headwinds arising from low interest rates, economic challenges in China, and geopolitical tensions.
Financial News initially reported HSBC's decision to close Zing.