Sources say around 400 jobs are at risk as HSBC payments app shuts down

Sources say management has lost enthusiasm for year-old app Zing

CEO pledges to sharpen focus, cut costs

Sources will notify affected employees on Thursday

LONDON, Jan 23 (Reuters) – HSBC has decided to shut down its international payments app Zing, a person familiar with the matter said, potentially costing around 400 jobs as CEO Georges Elhedery drives up costs at Europe’s largest bank Reduce intensity.

Notifications to employees at risk of redundancy will begin on Thursday, sources said, with the roughly 400 employees including a large number of non-HSBC external customer support staff.

A spokesman for HSBC declined to comment.

HSBC launched Zing a year ago – a mobile platform focused on cross-border payments, initially targeting UK customers using fintech rivals such as Revolut and Wise, which are trying to undercut the big banks with lower transaction fees. competitiveness.

The app is designed to complement HSBC’s global currency products offered to its international wealth and personal banking customers, and target non-HSBC customers helping to expand the bank’s traditional customer base.

But since Elhedery took over in September, management’s interest in building Zing to mount a serious challenge to rivals has waned, sources said.

Elkhedri spent a year as chief financial officer at the Asia-focused bank before taking over from Noel Quinn as chief executive amid ongoing efforts to streamline costs, sharpen focus and improve performance accountability. comprehensive reform.

Sources said further investment in Zing was considered an inefficient use of capital.

A number of senior managers have left HSBC in recent weeks as Elhedery seeks to create a simpler, more dynamic organization.

More lower-level job cuts are expected in the first quarter, with bank managers keen to offset the headwinds to earnings from lower interest rates, a slowdown in China and geopolitical tensions.

Financial News earlier reported the bank’s decision to shut down Zing. (Reporting by Sinead Cruz; Editing by Tommy Reggiore Wilkes and Jane Merriman)