Inside Chime: From 2013 to Now Into a $2.3 billion business
Startup Type:
Headquarter: San Francisco, USA
Current Status: Active (private; tens of millions of users in the US)
Founders: Chris Britt, Ryan King
Founded Year: 2013
Investors: DST Global, Coatue Management, Menlo Ventures
Funding Raised: $2.3 billion
What Is the business model of Chime?
Neobank offering fee-free consumer banking services via mobile app, including checking accounts with debit card, savings accounts, and early paycheck access; earns revenue primarily through interchange fees on card transactions
How Chime got started?
Chime was founded in 2013 to provide a bank account with no overdraft or monthly fees, launched as an app in 2014 targeting millennials disenchanted with traditional banks, partnering with regional banks on the backend for FDIC-insured accounts
what growth strategy has Chime followed?
Achieved growth by offering features like getting paid two days early and no-fee overdrafts up to a limit, combined with aggressive marketing and referral bonuses, during the pandemic its user base surged, making it one of the most valuable digital banks in the US
what are the top products/features of Chime
Chime Spending Account, Chime Savings Account, SpotMe no-fee overdraft, Chime Credit Builder card
what was the biggest challenge faced by Chime?
Had to manage rapid user growth and account fraud prevention without having physical branches, and faced occasional outages and payment processing issues that drew customer frustration