HSBC Bank has launched a mobile business banking app designed to help UK small business owners. Mohamed Dabo spoke with Peter McIntyre, head of Small Business Banking at HSBC UK
In spite of the Covid-19 crisis and so-called post-Brexit teething problems, HSBC remains bullish on UK businesses. This week, the global bank that launched a record £15bn lending fund to support small and medium-sized enterprises (SMEs) across the UK—has also kicked off Kinetic, a mobile-first banking app.
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“HSBC Kinetic is a truly mobile-first banking service versus a bank account with mobile features added on,” McIntyre said.
“It combines our extensive banking expertise and infrastructure with an innovative approach to offer the best possible business banking experience for customers at a very competitive price point.”
McIntyre describes Kinetic as an agile, flexible, and responsive banking service that empowers small businesses.
“While other apps might offer a single, or limited selection of services, HSBC Kinetic has been built to offer a complete banking service,” he says.
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By GlobalData“It combines the agility of a fintech with the backing of a global bank that can support businesses through every stage of their growth.”
Developed using insights from over 3,000 small business owners, the app is available for download on both iOS and Android via the Apple App Store and in Google Play.
No monthly account fees for the first 18 months
HSBC Kinetic could be right for you if you’re a single director limited company or a sole trader, and your company has a turnover of up to £2m, McIntyre says.
If you are a limited company, you must be the sole shareholder and director, recorded at Companies House as “at least 75% or more ownership and/or voting rights”.
Once approved, customers can order a debit card and use the app to manage their business payments such as Direct Debits, standing orders and future payments with ease.
They can also see where their money is going with spend categorisation and cash flow insights.
“HSBC Kinetic is more than just business bank account, with a suite of products including, credit card, same day overdrafts and a savings account that can all be applied for in app—subject to eligibility.”
There will be no monthly account fees for the first 18 months. However, there are other fees and charges that will apply.
After the 18-month fee free period expires, there will be a monthly account fee of £6.50. Fees and charges are subject to change and customers will be notified in advance of any changes, he said.
Your eligible deposits with HSBC Kinetic are protected up to the FSCS compensation limit by the Financial Services Compensation Scheme, the UK’s deposit protection scheme.
This limit is applied to the total of any deposits you have with HSBC UK Bank Plc and first direct. Any deposits you hold above the FSCS compensation limit are unlikely to be covered, unless under specific circumstances.
Same day overdrafts of up to £30K
“We’ve introduced a suite of business banking products that can be applied for in the app including credit cards, debit cards, same day overdrafts of up to £30,000, and instant access savings account to help businesses plan for future expenses.”
It also has several value-add features including, auto-categorised transactions, personalised cash flow insights, in app customer service, simple and speedy card control features, desktop access and access to discounts and products offered by recognised partners.
“Over the coming months we will also be launching small business loans and international payments,” McIntyre said.
The HSBC Kinetic app for iPhone includes:
- A debit card
- Freeze or unfreeze your card in case you lose it.
- Make and receive payments.
- Set up and manage Direct Debits, standing orders and future payments.
- Automatically categorised transactions to help you monitor your spending.
- A view of monthly cash flow within your HSBC Kinetic account.
- Relevant insights that could help you manage your money better.
- Integrate with Xero, sage or Quickbooks accounting software to see your transactions within HSBC Kinetic.
- Access from your mobile or desktop.
- Overdraft, Credit Card and Savings Account (subject to eligibility and application).
The HSBC Kinetic app for Android includes:
- A debit card.
- Freeze or unfreeze your card in case you lose it.
- Make and receive payments.
- Set up and manage Direct Debits, standing orders and future payments.
- Access from your mobile or desktop.
- A Savings account (subject to eligibility and application).
- Automatically categorised transactions to help you monitor your spending.
HSBC as a bank for small business
According to research from HSBC, less than a third (31%) of UK SMEs feel completely confident in their ability to stay on top of their finances in real-time.
A further 40% admit to struggling with at least one aspect of managing them.
Top areas for concern were finding the time to spend on finances and understanding what action to take as a result of what their finances were telling them.
According to McIntyre, both of these areas are addressed by HSBC Kinetic “and the wealth of information its puts at users’ fingertips.”
“2020 was a tough year for businesses, Covid-19 brought unprecedented disruption, but it’s also provided an impetus for rethinking processes and adopt new technology,” McIntyre said.
“HSBC UK is committed to supporting British businesses across the country through economic uncertainty helping business to innovate, thrive and grow and we have a £15 billion fund to help British businesses grow.”
It’s HSBC’s ambition to redefine and re-invent business banking for SME customers, McIntyre said.
“Over the course of the next two years, we will be investing significantly in our digital solutions as part of the bank’s largest ever digital transformation project.”
