HSBC has launched Kinetic, a business banking app for SMEs.

The launch comes as leading FinTech challengers including Monzo, Starling and Revolut scale up their business account offerings as a route to profitability.

HSBC said Kinetic has been developed using insights from over 3,000 small business owners, with the app available for download on iOS and Android.

Business owners can apply for an account on the app with the process taking a minute, and once approved, customers can order a debit card and use the app to manage business payments such as Direct Debits, standing orders and future payments.

Kinetic is also offering credit card and same day overdraft facilities as well as a savings account which is open for applications within the app.

YouGov research carried out for HSBC found that less than a third (31 per cent) of UK SMEs feel completely confident in their ability to stay on top of their finances in real-time, with a further 40 per cent admitting 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.

Kinetic also offers personalised insights so that small businesses can get a closer understanding of cash flow, including automatically categorised spending overviews, account insights in line with HMRC tax coding, monthly breakdowns of cash flow and insights into spending patterns, along with in-app customer service.

The app integrates with small business finance solutions including accounting software from providers such as Xero, QuickBooks, and Sage.

The service, which has been built on the Google Cloud platform, is available in the early access period for free for 18 months, after which a monthly fee of £6.50 will be charged.

Peter McIntyre, head of small business banking at HSBC UK, said: “Faced with a constantly evolving market environment, today’s small businesses need a bank that is agile and flexible – that equips them with real-time, easy to understand banking data to help them make quick decisions and pivot their operations.”

He added: “HSBC is investing billions of dollars a year globally in technology and digital transformation to make banking simpler, safer and more personalised for our customers around the world. This includes putting more of the bank in customers’ pockets, by enabling them to manage their finances on their smartphones whenever and wherever they want.”

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