Some realistic predictions for 2024, the psychology behind why resolutions fail, resolutions that fintechs should make, and some insights from my end of year quiz
It’s hard to see Zing winning in the long-term. What is the compelling case for using it over Wise? They have higher fees and I’d be very surprised if their UI is better - but I'm prepared to give it a go. The curious thing is that HSBC will continue to charge their existing personal clients FX fees above the Zing rates, and likely many corporate clients also. If I was a HSBC client with large volumes I’d be asking for discounts on my FX fees. As usual the big banks have a risk of cannibalising existing margins. This is a case of trying to get in front with a lower margin separate product but is it delaying the inevitable reduction in FX margins across the whole book?
1. There's no compelling case right now but I guess this is step 1 with more product evolution to come.
2. As a HSBC customer it is frustrating to see a separate app that will have lower FX fees than the account I've used for 17 yrs especially when my deposits and the fees I've been charge have likely funded the Zing project in some way. However, if their goal is to compete with Wise, Revolut, Monzo et al, then creating a separate app with its own branding, objectives and platform makes sense. Unfortunately, I don't think they intend is to equalise rates across their whole book, rather to use Zing as competition to popular forex fintechs and as you said split this out from their existing offerings.
Again, it makes sense to build it as a separate proposition with it's own tech stack (especially if they are using technology that they have a vested interest in, Monese's XYB), but to leave out any mention of existing HSBC customers feels like a slap in the face.
I compare it to the huge discounts offered by gyms to new customers at the start of the year that essentially penalises loyal gym goers that give those gyms stable runway.
this substack alone feels like a yr-end arcade lol, engaging & informative. 2024, way to go
Appreciate it and more to come this year! 💪🏽
It’s hard to see Zing winning in the long-term. What is the compelling case for using it over Wise? They have higher fees and I’d be very surprised if their UI is better - but I'm prepared to give it a go. The curious thing is that HSBC will continue to charge their existing personal clients FX fees above the Zing rates, and likely many corporate clients also. If I was a HSBC client with large volumes I’d be asking for discounts on my FX fees. As usual the big banks have a risk of cannibalising existing margins. This is a case of trying to get in front with a lower margin separate product but is it delaying the inevitable reduction in FX margins across the whole book?
Agree with this.
1. There's no compelling case right now but I guess this is step 1 with more product evolution to come.
2. As a HSBC customer it is frustrating to see a separate app that will have lower FX fees than the account I've used for 17 yrs especially when my deposits and the fees I've been charge have likely funded the Zing project in some way. However, if their goal is to compete with Wise, Revolut, Monzo et al, then creating a separate app with its own branding, objectives and platform makes sense. Unfortunately, I don't think they intend is to equalise rates across their whole book, rather to use Zing as competition to popular forex fintechs and as you said split this out from their existing offerings.
Again, it makes sense to build it as a separate proposition with it's own tech stack (especially if they are using technology that they have a vested interest in, Monese's XYB), but to leave out any mention of existing HSBC customers feels like a slap in the face.
I compare it to the huge discounts offered by gyms to new customers at the start of the year that essentially penalises loyal gym goers that give those gyms stable runway.
I've been away from the UK since the start of the year and now just on my way back. Not looking forward to seeing how packed my gym will be 😂
I went last week and it felt like a completely different place (more like a nightclub than a gym) 😂