Wise, FX Fintechs Face New Rival in HSBC’s Zing App

In the early 2010s, a pack of financial technology startups hit the market with an offer that many consumers found hard to refuse: international money transfers for a fraction of what banks charge. For decades, banks had used their grip on international transactions to impose fees as high as 3% to 4% for sending cash abroad. The newcomers—Wise, Revolut, WorldRemit—did the same thing for practically nothing, instead making money from the sheer volume of transfers.

Now the banks are fighting back. In January, HSBC Holdings Plc introduced in the UK a service it calls Zing, which promises to match what the fintechs are offering but with the backing of one of the world’s largest financial institutions. HSBC hopes to use its pitch of greater stability to win back wealthy, internationally mobile customers.