Home HSBC tests small business bank app ahead of launch
Loans, News, Technology

HSBC tests small business bank app ahead of launch

Roger Baird

HSBC is inviting small firms to begin testing its new app-only bank Kinetic, as a wave of traditional and challenger banks compete for small business accounts.

The global bank, with more than 40 million customers in 65 countries, said it has talked to “over 2,400 UK businesses” and is now ready to begin beta trials with a “select group of business owners for help to improve the service”.

The high-street lender promises firms that sign up early for the service will face no monthly charges during testing, and will receive a free £100 Amazon eGift card. HSBC plans a full launch of the service next year.

The move comes as traditional lenders respond to a wave of digital banks, such as Revolut, Monzo and Starling Bank, which have launched in recent years and threaten to eat into incumbent market shares.

These challenger banks, established in the aftermath of the 2008 financial crisis, offer small firms better terms and higher customer service standards than high street banks, who cut their lending to small businesses during the crash, fearing defaults.

 

Digital challengers

The response of high street lenders to digital banks has been to upgrade the main brand’s online offering, buy fintech rivals, and launch digital offshoots.

Royal Bank of Scotland (RBS) new digital bank Bo, begins its public roll-out later this month.

The country’s biggest building society Nationwide is beefing up its digital business, following its £50m award in May to increase competition in this area, which is part of a series of grants paid for by Royal Bank of Scotland, after its 2008 bailout broke European Union state aid rules.

HSBC Kinetic will offer small businesses mobile-managed current accounts, overdrafts and spending and cashflow insights generated by the app crunching data on a company’s spending habits.

The service has been developed by around 150 staff in London working away from HSBC’s Canary Wharf corporate headquarters.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission on real stocks

Rating

64 traders signed up today

Visit Now

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account

Roger Baird

Roger Baird

Roger Baird is News Editor at Finixio. He has worked as a financial journalist for 20 years reporting on companies, capital markets and the UK economy.