HSBC is set to shut down a payments app after its launch just a year a go in a blow for customers.
The Zing platform, which lets users make global payments and comes with a fee-free international prepaid debit card, will be wound down.
HSBC is closing down its Zing platform[/caption]
HSBC said the platform, which first launched in early 2024, will remain operational for now.
The Sun has asked when it will be closed and will update this story when we have heard back.
The closure of the app will reportedly lead to around 400 job losses.
A spokesperson for HSBC said the bank had decided to close Zing following a strategic review.
They said: “We have made the decision to close Zing and integrate its underlying technology platform into HSBC.
“Zing customers will be informed of an alternative option to become bank customers of HSBC UK and use the Global Money proposition.”
The Global Money Account lets customers transfer cash to other HSBC accounts in over 50 currencies.
The latest announcement from HSBC comes after the bank announced a major overhaul of its structure following new boss Georges Elhedery taking the helm.
In October, the bank said it would merge its commercial and institutional banking operations and create a new international wealth and premier banking division.
It also said it wanted to simplify it’s geographic structure based on its operations in the East and West of the world.
Mr Elhedery said: “The new structure will result in a simpler, more dynamic, and agile organisation as we focus on executing against our strategic priorities, which remain unchanged.
“By making these changes, we can better focus on increasing leadership and market share in those businesses which have clear competitive advantage and the greatest opportunities to grow.”
It’s not all bad news on the HSBC front.
Last year, sources revealed to The Sun that the bank has plans to make debit cards fee-free on all spending abroad.
Other major upcoming banking changes
The announcement from HSBC comes ahead of some other major upcoming banking changes.
Nationwide, Barclays and Chase are all reducing rates on savings accounts within days.
The three are dropping rates from next month after the BoE slashed its base rate from 5% to 4.75% in November.
This is the rate charged to smaller high street banks who then pass this onto members of the public.
If base rate goes down, it tends to see banks slash rates on their savings accounts.
Nationwide is slashing interest rates on 89 savings accounts by up to 0.26% from February 1.
This includes on 55 non-ISA savings accounts and 34 ISA accounts.
Meanwhile, Barclays is dropping rates on two of its savings accounts from February 13 – the Everyday Saver and the Rainy Day Saver.
Rates are being slashed by up to 0.25% on balances up to £10,000.
However, those with an Everyday Saver account with a balance over £10,000 are actually seeing rates rise from 1.16% to 1.26%.
Chase Bank is also dropping the rate on its Chase Saver account.
The savings account’s interest rate tracks the BoE’s base rate, and currently sits 1.25% below it.
However, from February 19, the interest rate will track 1.5% below the base rate instead – a 0.25 percentage point change.
It means savers will see their interest rate go down from 3.5% to 3.25%, as it stands.
Meanwhile, Vanguard is launching a monthly account fee on January 31, Starling is ending interest payments on current accounts next month and from April First Direct is axing access to self-service machines at HSBC branches.
How to save money while abroad
Consumer reporter Sam Walker reveals how you can cut costs on holiday spending.
- Make sure you exchange any sterling at a bureau de change before you get to the airport where you’ll be offered measly rates.
- It might be worth getting a prepaid travel card as well – you can load these up with money in your chosen currency at a fixed exchange rate.
- If you have to withdraw cash abroad, make sure you try and use an ATM from a major bank as these tend to offer lower fees and better exchange rates.
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