Hey FinTech Fanatic!
HSBC recently launched Zing, a new application poised to challenge established FinTech players such as Wise and Revolut in the competitive foreign exchange (FX) market.
Zing is designed to attract users with its promise of low transaction fees, a direct response to the cost-effective solutions offered by its fintech rivals. By doing so, HSBC aims to carve out a significant niche for itself in this sector by combining competitive pricing with the robust infrastructure of a traditional banking giant.
The financial specifics behind the development of Zing remain somewhat opaque, with HSBC keeping the project's budget under wraps. Nevertheless, documents from UK corporate filings shine a light on the potential scale of investment, revealing that nearly $74 million has been funneled into MP Payments Group Ltd, a move that analysts interpret as part of the bank's broader strategy for Zing.
Industry insiders speculate that the total expenditure on Zing could be as high as $150 million, indicating HSBC's substantial commitment to securing a foothold in the fintech arena.
Meanwhile, neobank bunq is planning to 𝗿𝗲𝗮𝗽𝗽𝗹𝘆 shortly after it withdrew its application in the US on January 30th, after 301 days in the OCC’s queue.
Here is bunq’s exclusive explanation statement on the news of the withdrawal:
"bunq’s latest step in the application process is merely procedural. During the course of the application process, some difference of views has emerged between bunq’s home country regulator, the Dutch National Bank (DNB), and the FDIC and OCC in the US.
Regardless of the source of and reason for this unexpected divergence, bunq intends to speedily re-file the application, fully committed to resolving all the differences between DNB’s and the FDIC’s and OCC’s supervisory expectations."
As Michelle Alt mentioned on Linkedin: "It has now been 1,145 days since the OCC’s last fintech de novo approval." Is bunq gonna be the first to finally get approved?
Let me know what you think in the comments and I'll be back with more news in your inbox tomorrow!
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DIGITAL BANKING NEWS
🇳🇱 bunq is planning to reapply shortly after it withdrew its US application on January 30th, after 301 days in the OCC’s queue. Click here to read bunq’s exclusive explanation statement and discover the full story.
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MOVERS & SHAKERS
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