US challenger Chime banks 750k millennials

By Emily Nicolle on Monday 29 January 2018

Digital Banking

The mobile-only neobank has charged past its competition for the wallets of American youth.

US-based Chime has released a statement saying it has now surpassed 750,000 opened accounts with plans to raise the bar even higher.

As one of many digital banks specifically targeted towards millennials, user numbers like Chime’s are now reportedly much higher than those of its competitors, including Varo, Qapital, or even incumbent offerings like Finn by JPMorgan Chase.

The challenger offers low-fee current and savings accounts, attached to a debit card which offers rewards on purchases, and accessed via an app which provides real-time notifications and automated savings. In 2017, Chime reported its users saving a total of $72m into its savings accounts, largely through its feature which rounds up purchases and saves the spare change.

Chime says that it expects to sign up a total of 100,000 new users by the end of January, with half of its new acquisitions already coming through word of mouth or direct customer referrals. Over time, the bank has suggested it might look towards expanding into lending and robo advice as it seeks to continue outperforming its rivals.

“You’re going to increasingly see a trend toward the automation of finances as well as working with companies and brands that are authentic,” said Chime CEO Chris Britt when speaking to American Banker last week.

“We want to make to make it as easy as possible for our members to have interoperability with all those services they want to use. I believe the days of getting all your financial services from one bank brand are ending. The big banks will kick and scream the whole way.”

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