Chime (company)

Chime is an American technology neobank company which provides fee-free financial services through a mobile app. Chime has no physical branches and does not charge monthly or overdraft fees. As of February 2020, Chime had 8 million account holders.[2] Account-holders are issued Visa debit cards and have access to an online banking system accessible through chime.com or via the mobile app for Android or iOS. Chime earns the majority of its revenue from the collection of interchange.[3][4]

Not to be confused with Chime Communications Limited or Chime Communications (Australia).

Chime
TypePrivate
IndustryFinancial services
Founded2013 (2013)
FoundersChris Britt
Ryan King
HeadquartersSan Francisco, California, United States
ProductsChecking accounts, savings accounts, debit cards, p2p, fee-free overdraft
Revenue US$200 million (2019)[1]
Total assets US$5.8 billion (2019)[1]
Websitechime.com

Chime bank accounts are insured up to the standard maximum deposit insurance amount of $250,000 through its partners, The Bancorp Bank or Central National Bank, which rebranded itself as Stride Bank, N.A. in 2019.[5][6] Accounts are also owned and managed by either The Bancorp Bank or Stride Bank.

History

Chime was founded by Chris Britt (CEO) and Ryan King (CTO) in 2013 in San Francisco, California as an alternative to traditional banking. The company launched publicly on April 15, 2014 on the Dr. Phil Show.[7] As of 2020, Chime has raised $1.5 billion in private funding.[8]

In 2018, Chime acquired Pinch, a startup focused on helping millennials and young adults build their credit scores by reporting on-time rent payments to credit bureaus. Pinch's co-founders joined Chime's team as a part of the acquisition.[9]

On October 16, 2019, Chime experienced a service outage leaving users without access to their deposits. The issue was resolved the next day. [10]

In January 2020, Chime announced a partnership with the Dallas Mavericks as their jersey sponsor as a part of a multi-year deal.[11]

Response to the COVID-19 pandemic

In April 2020, in response to the financial strain of the COVID-19 pandemic, Chime announced a pilot program to provide users who e-filed tax returns with the IRS a $1,200 advance on the Economic Stimulus Payment via SpotMe, Chime's fee-free overdraft product. [12] Chime later announced the successful processing of over $375,000,000 in stimulus payments 1 week ahead of the scheduled government disbursement date.[13]

Products

Chime offers various fee-free banking products, including checking accounts with no minimum balance, an automated savings feature, and early wage access.[14]

In September 2019, Chime launched SpotMe, a fee-free overdraft service where customers can overdraw their accounts up to $100 without incurring an overdraft fee; once the overdraft limit is reached, purchases will be declined but no traditional negative balance fees charged.[15]

Chime launched Credit Builder in June 2020, a credit card designed to help consumers build their credit history. [16]

See also

References
  1. Fuscaldo, Donna. "Digital Bank Chime Now Has a Valuation of $5.8 Billion". Forbes.
  2. Magana, Gregory. "Chime has hit 8 million accounts and is now offering a 1.6% interest rate on savings products". Business Insider.
  3. "Online bank Chime is said to near funding at $1.5 billion value". American Banker. Retrieved 2019-12-08.
  4. "Chime". Growjo. Retrieved 19 November 2020.
  5. "Home". stridebank.com. Retrieved 2020-07-29.
  6. "What type of account is my Chime account?". Chime Banking - Help Center. Retrieved 2020-07-29.
  7. McGraw, Phil (April 15, 2014). "Dr. Phil Surprises a Guest Preparing for a New Baby". YouTube.
  8. "Chime is now worth $14.5 billion, surging past Robinhood as the most valuable US consumer fintechs". CNBC. Retrieved 2020-11-01.
  9. "Mobile bank Chime picks up credit score improvement service Pinch in all-stock deal".
  10. Son, Hugh; Rooney, Kate (October 17, 2019). "Mobile bank Chime goes dark for millions of customers as it seeks $5 billion valuation". CNBC.
  11. Rader, Doyle. "Dallas Mavericks Announce Multi-Year Partnership With Chime As Jersey Sponsor". Forbes.
  12. Son, Hugh (April 2, 2020). "Chime pilots way to get $1,200 stimulus checks to users instantly after talks with Mark Cuban". CNBC.
  13. "#ChimeCARES Update: Initial stimulus payments have been received. More on the way. | Chime". Banking Made Awesome. April 10, 2020.
  14. Green, Rachel. "Chime's recent earnings marks the largest single equity investment in a neobank". Business Insider.
  15. "Chime now has 5 million customers and introduces overdraft alternative".
  16. "US challenger bank Chime launches Credit Builder, a credit card that works more like debit". Techcrunch.
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