HSBC and RBS to launch pair of digital bank services

British banks HSBC and RBS are reportedly set to release a pair of new digital banking platforms to meet rising demand of digital services.

HSBC has begun the beta testing for its app-based business banking service Kinetic, while RBS is finalising its Bo service which is set for launch later this month, according to a report from Reuters.

Businesses making use of HSBC Kinetic will be able to manage direct debits, standing orders and future payments through the mobile app. They can also control their debit card with the power to activate, freeze and unfreeze it within an instant.

To support the needs of banking, the company can apply of an in-app overdraft.

The bank’s head of UK small business banking Peter McIntyre hopes to have hundreds of thousands of customers on the platform and will deploy it services to other countries in the future, the article said.

There has been a lot of appetite for challenger banks around the world this year. A study from Market Research found that the challenger bank market is set to grow at a compound annual growth rate of 46.5% between now and 2025. By then, the market should be worth around $394bn.

The UK has a thriving marketplace for digital banks with Atom bank, Monzo, Revolut, Starling Bank, Tandem and Monese just some of the major brands competing. Since 2014, these banks have raised £1 .3bn in venture funding.

With the UK market uncertainty, it could be risky to launch new services, but McIntyre believes this is the perfect time. It can offer customers better financial insights during the tough times.

RBS’ Bo service is positioned for a launch later this month and aims to inspire users to budget and improve savings, Reuters reports. The target of the service are UK residents with less than £100 in savings.

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