London’s multinational banking behemoth HSBC Holdings (GB:HSBA) is launching its Zing app to compete with fintech startups in the international payments space. The soon-to-be-launched app will offer cheap foreign exchange, especially targeting non-HSBC customers. Zing will first be launched in the U.K., followed by a global rollout in Asia, the Middle East, and EU markets.
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The British banking giant offers retail, commercial and institutional banking, global banking and markets, wealth management, and private banking solutions. HSBC is considered one of the largest banks in the world and is of systemic importance to the global financial system. HSBC shares have gained 28.4% in the past year.
Here’s Why HSBC is Launching Zing
HSBC is already an established player in all areas of conventional banking. The bank wants to capture the burgeoning foreign exchange market with its low-cost international payments app, Zing. Fintech startups like Revolut and Wise have attracted millions of retail customers for the service in a short period and expect to grow their operations significantly.
HSBC aims to seize the market from the smaller players through its solid network and financial backing. Retail customers will be able to download Zing from the iPhone App Store and Android Play Store. The bank’s foray into the market reflects the popularity of fintech solutions and customers’ growing preference for digitization.
Nuno Matos, CEO of the bank’s global wealth and personal banking business, said the app will be easy to use and significantly competitive in its forex offerings. HSBC’s Global Money provides similar forex services to the bank’s customers. Through the success of Zing, HSBC hopes to attract even non-customers to its other primary banking services.
Is HSBC a Good Stock to Buy Now?
On TipRanks, HSBA stock has a Moderate Buy consensus rating based on seven Buys, four Holds, and one Sell rating. The HSBC Holdings share price forecast of 795.94p implies 26.4% upside potential from current levels.
