HSBC poised to launch app-only SME bank Kinetic

Kinetic is said to fully launch to the public in 2020, with beta-testing underway.

High street bank HSBC is preparing to launch its own digital bank called Kinetic to take on NatWest’s Mettle and challenger bank Tide in the SME banking space.

Kinetic’s website went live this week and the bank opened registrations to join its waiting list to beta test the app.

HSBC looks set to aggressively take on its mobile-only rivals with a £100 Amazon gift promotion for early sign-ups. 

Kinetic is said to fully launch to the public in 2020, and has been created by HSBC “based on real-life insights from over 2,400 UK businesses”.

Unlike Tide's Business Account, Kinetic is free during the beta testing period, however this could change once the bank launches to the public.

Kinetic is already integrated with Xero’s accounting package, and HSBC says it is working with other providers like Quickbooks and Sage to add them to the platform.

While the app will be starting with standard digital banking features like automatically categorising transactions, in the future, HSBC says it will be adding advanced cash flow predictions to help sole traders and limited companies understand their financial health.

The arrival of Kinetic comes at an interesting time, after NatWest also debuted the waiting list for its consumer-facing digital bank Bo in the App Store and hired Marieke Flament to lead its SME digital bank Mettle.