Chime (company) - Wikipedia

American financial services company Not to be confused with Chime Communications Limited or Chime Communications (Australia). Chime Financial, Inc.

Headquarters in San Francisco, California
Company type	Public
Traded as	Nasdaq: CHYM (Class A)
Industry	Financial services
Founded	2012; 13 years ago (2012)
Founders	Chris Britt and Ryan King[1][2]
Headquarters	101 California StreetSan Francisco, California, United States
Key people	Chris Britt (CEO) Ryan King (Co-Founder)
Products	Checking accounts, savings accounts, debit cards, P2P, credit cards, fee-free overdraft
Revenue	US$1.3 billion[3] (2023)
Net income	$−200 million (loss)[3] (2023)
Website	chime.com

Chime Financial, Inc. is an American financial technology company based in San Francisco, California. It provides fee-free mobile banking services through two national banks, Stride Bank and The Bancorp Bank.[2][4][5][6][7]

Chime offers early access to paychecks, negative account balances without overdraft fees,[2] high-yield savings accounts, peer-to-peer payment services,[5] and an interest-free secured credit card.[8] It does not charge monthly service fees or overdraft fees, or require minimum balances. Most of its revenue comes from interchange fees on debit card transactions.[9] On June 12, 2025, Chime became public via an initial public offering.

Chime is not a bank.[10] It is able to offer its services via its relationships with banks; customer funds are routed to a chartered bank. FDIC insurance is available to users via the partnered banks, not directly through Chime, so customers may not be protected against some failures.[11][12][13] In 2021 and 2022, Chime was criticized for closing customer accounts without notice and not returning funds in a timely manner.[14][15] In 2024, it was fined for poor handling of customer complaints and agreed to upgrade its customer service.[16]

History

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Chime was founded by Chris Britt (CEO) and Ryan King (CTO) in 2012[17] in San Francisco, California, as an alternative to traditional banking to serve less affluent communities and people living paycheck to paycheck.[18][3] The company launched on April 15, 2014, on the Dr. Phil Show.[19] As of 2021, Chime had raised $2.3 billion in private funding. In 2022, it was named one of Fortune's Best Places to Work.[3][20][21]

On October 16, 2019, Chime experienced a service outage leaving users without access to their deposits. The issue was resolved the next day.[22]

In January 2020, Chime announced a partnership with the Dallas Mavericks as their jersey sponsor as a part of a multi-year deal.[23] Chime had 8 million account holders in February 2020.[24]

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.[25] Chime later announced the successful processing of over $375 million in stimulus payments one week before the scheduled government disbursement date.[26]

In September 2021, Chime leased 192,000 square feet of office space across six floors in a San Francisco building owned by Hines.[27] According to a report by Forbes, Chime had planned to hold an initial public offering (IPO) in March 2022. The company delayed its IPO, however, in February 2022.[28] Chime laid off 160 positions, equalling 12% of its workforce, in November 2022.[29]

As of May 2024[update], the company, which operated under a hybrid work model, reported having 1,300 employees and 7 million customers.[3] At the time, it was processing $8 billion worth of transactions monthly. Chime's revenue in 2023 was approximately $1.3 billion. The company's customers are largely made up of young Americans with incomes ranging from $35,000 to $65,000 annually.[3]

In August 2021, Chime Financial raised $750 million in a series G funding round, led by investor Sequoia Capital Global Equities,[30] giving the company a valuation of about $25 billion.[30]

In 2024, Chime was named to the CNBC Disruptor 50 list[31] and had approximately 22 million customers.[13]

Chime issued publicly traded stock on the Nasdaq exchange under the ticker symbol “CHYM” in June, 2025. Chime went public on June 12 after raising $864 million in its IPO, valuing the company at $11.6 billion.[32][33][34]

In September 2025, the company introduced the Chime Card, a no-annual-fee secured credit card with 1.5% cash back in rotating categories.[35][36]

As of October 2025[update], Chime has an 'A+' rating from the Better Business Bureau (BBB), with 8,000 customer complaints during the previous 3 years.[37]

Operations

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Chime has no physical branches and does not charge monthly or overdraft fees, nor does it require an opening deposit or minimum balance to open a free checking account.[38] Bank accounts provided by Chime's partners are FDIC insured up to the standard maximum of $250,000, but FDIC bank insurance on Chime accounts does not directly protect Chime's customers.[11][12] Accounts are only available to individuals; all money received must be in the name of the individual account owner. Customers cannot appeal to banking regulators to retrieve their deposits, which may not be returned in a timely fashion.[14]

Investors

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Some of Chime’s notable early investors include seed investors Satya Patel of Homebrew, Kirsten Green of Forerunner Ventures, and Series A investors Lauren Kolodny of Acrew Capital (formerly Aspect Ventures) and Crosslink Capital. Later rounds included Menlo Ventures, DST, General Atlantic and Coatue.

Products

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Chime offers various fee-free banking products, including checking accounts with no minimum balance, an automated savings feature, high-yield savings accounts, peer-to-peer payments,[5] and an early paycheck feature.[39]

In September 2019, Chime launched SpotMe, a fee-free overdraft service that allows customers to overdraw their accounts by up to $100 without incurring a fee; once the overdraft limit is reached, purchases will be declined but no fees charged.[6]

In June 2020, Chime and Stride Bank launched Credit Builder, a credit card designed to help consumers build their credit history.[40] Chime was the most downloaded digital banking app in the U.S. during the first half of 2021, according to Apptopia.[41]

In 2024, Chime launched MyPay, an earned wage access (EWA) product that allows users to access up to $500 of wages before payday. MyPay has no mandatory fees or interest and does not require a credit check.[42]

In January 2025, Chime began offering federal and state tax filing services on its app.[43] In September 2025, the company introduced the Chime Card, a no-fee secured credit card with 1.5% cash back in rotating categories. The Chime Card does not require a credit check for approval and has no late fees or interest.[35][36]

Consumer and regulatory problems

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Marketing as a bank

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Chime, which is not a bank, in 2021 came to agreements with two state financial regulators, the California Department of Financial Protection and Innovation and the Illinois Department of Financial and Professional Regulation, to stop representing itself as a bank. The company agreed to stop using the URL "chimebank.com", change its use of the word "bank" in marketing, and add disclaimers to its marketing and product text. It paid $200,000 in the settlement with Illinois.[10][44][45][46]

Account closures, difficulty recovering deposits

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Chime can close user accounts without notice. iI is not required to give customers a reason for the cancellation. Chime's partner banks have a duty under "know your customer" rules to guard against money laundering or other suspicious activity, including by closing down suspicious accounts.[14][15]

In July 2021, ProPublica published an article detailing Chime's record of closing customer accounts without notice or explanation, sometimes refusing to return customer deposits.[15] Chime has said the closures were an accidental byproduct of fraud prevention.[15]

In November 2022, Chime's practice of closing customer accounts without notice or explanation was again reported. As of November 2022, the Consumer Financial Protection Bureau had received 3,500 complaints about Chime since 2020. Customers with closed accounts sometimes had difficulty retrieving their deposits in a timely fashion. Since Chime customers are not customers of any bank, their recourse is often limited.[14][44]

In 2024, the CFPB assessed a $3.25 million penalty plus at least $1.3 million in redress to customers for not returning deposits from closed accounts in a timely manner. Until 2021 Chime's customer service agreement said deposits would be issued by check within 14 days. Thousands of customers waited 90 days or longer. The settlement gives at least $150 in redress to any customer who had a $10 balance after 14 days from account closure. The $3.25 million penalty was paid to the CFPB victims relief fund. Chime blamed the problem on a "configuration error" in 2020 and 2021.[47][48]

Handling customer complaints

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In 2024 Chime entered into a consent order with the California Department of Financial Protection and Innovation (DFPI) and paid a $2.5 million penalty to resolve an investigation into the company's customer service. The DFPI found that customer complaints were not being handled fairly, accurately, and in a timely manner in compliance with the California Consumer Financial Protection law.[16] Chime agreed to provide 24-hour, 7-day customer service support with sufficient training and staffing to be in compliance, and to report on its compliance to DFPI for two years.[16]

See also

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• Challenger bank
• Financial technology
• Payment card industry

References

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1. ^ Maria Deutscher,"Mobile banking startup Chime lands $485M mega-round at $14.5B valuation". siliconangle.com. September 18, 2020. Retrieved April 23, 2015.
2. ^ a b c "25. Chime". cnbc.com. June 16, 2020. Retrieved April 23, 2015.
3. ^ a b c d e f Kauflin, Jeff. "Exclusive: The Inside Story Of Chime, America's Biggest Digital Bank". Forbes. Retrieved May 7, 2024.
4. ^ "Everything You Need to Know About Banking With Chime". Entrepreneur. November 4, 2021. Retrieved July 23, 2023.
5. ^ a b c "Digital Banking Challenger Chime Now Allows Users to Send Money to "Anyone and Everyone"". Crowdfund Insider. April 17, 2021. Retrieved April 17, 2021.
6. ^ a b "Chime now has 5 million customers and introduces overdraft alternative". TechCrunch. September 4, 2019. Retrieved April 7, 2021.
7. ^ Barnett, Ashley (September 12, 2024). "Chime promotions and bonuses". CNN.
8. ^ Sandberg, Erica (August 19, 2024). "Is the Chime Credit Builder Card Worth It?". US News.
9. ^ "Online bank Chime is said to near funding at $1.5 billion value". American Banker. February 6, 2019. Retrieved December 8, 2019.
10. ^ a b "California Prohibits Fintech Chime From Calling Itself a Bank". Bloomberg Law. May 5, 2021. Retrieved November 26, 2022.
11. ^ a b Mason, Emily (June 17, 2024). "Is Your Money Really Safe In An 'FDIC-Insured' Fintech Account?". Forbes. Retrieved August 28, 2024.
12. ^ a b "Banking with Third-Party Apps". FDIC:Consumer Resource Center. May 31, 2024. Retrieved November 26, 2024.
13. ^ a b Clark Estes, Adam (November 25, 2024). "The perils of using payment apps as your bank account". Vox.
14. ^ a b c d Zimmermann, Stephanie (November 25, 2022). "Closed accounts, no money: Chime app users complain they were suddenly shut out of their online accounts". Chicago Sun-Times. Retrieved November 26, 2022.
15. ^ a b c d Kessler, Carson (July 6, 2021). "A Banking App Has Been Suddenly Closing Accounts, Sometimes Not Returning Customers' Money". ProPublica. Retrieved July 8, 2021.
16. ^ a b c "DFPI Orders Chime Financial to Pay $2.5 Million, Improve Customer Service Standards Due to Unfair Complaint Handling" (Press release). The Department of Financial Protection and Innovation. February 27, 2024. Retrieved May 7, 2024.
17. ^ "Chime About Us". Chime. Retrieved June 15, 2023.
18. ^ "Meet the Team: Product at Chime". Medium.com. January 12, 2022. Retrieved February 19, 2022.
19. ^ McGraw, Phil (April 15, 2014). "Dr. Phil Surprises a Guest Preparing for a New Baby". YouTube.
20. ^ "Chime is now worth $14.5 billion, surging past Robinhood as the most valuable US consumer fintechs". CNBC. September 18, 2020. Retrieved November 1, 2020.
21. ^ 75 Best Small and Medium Workplaces in the Bay AreaFortune (magazine)
22. ^ Son, Hugh; Rooney, Kate (October 17, 2019). "Mobile bank Chime goes dark for millions of customers as it seeks $5 billion valuation". CNBC.
23. ^ Young, Jabari (May 30, 2025). "Dallas Mavericks finalize multi-year jersey patch deal with Chime". CNBC.
24. ^ "Chime has hit 8 million accounts and is now offering a 1.6% interest rate on savings products". Business Insider.
25. ^ Son, Hugh (April 2, 2020). "Chime pilots way to get $1,200 stimulus checks to users instantly after talks with Mark Cuban". CNBC.
26. ^ "#ChimeCARES Update: Initial stimulus payments have been received. More on the way. | Chime". Banking Made Awesome. April 10, 2020.
27. ^ Done deal: Chime signs the largest new San Francisco lease of the year at downtown skyscraperSan Francisco Business Times
28. ^ "With Fintech Stocks Down 40%, Chime Delays Its IPO". Forbes. Retrieved February 19, 2022.
29. ^ León, Riley de (November 3, 2022). "Chime cuts 12% of its workforce, adding to recent wave of tech layoffs". CNBC. Retrieved November 3, 2022.
30. ^ a b Corrie Driebusch & Peter Rudegeair,"Chime Financial Raises $750 Million in Latest Funding Round". wsj.com. August 13, 2021. Retrieved August 23, 2021.
31. ^ "22. Chime". CNBC. May 14, 2024. Retrieved October 11, 2024.
32. ^ Sigalos, MacKenzie (May 30, 2025). "Chime pops 37% in Nasdaq debut after pricing IPO above expected range". CNBC.
33. ^ Shekhawat, Jaiveer; Saini, Manya (May 13, 2025). "Digital banking startup Chime reveals rise in revenue as it files for US IPO". Reuters. Retrieved May 19, 2025.
34. ^ "Chime valued at $18.4 billion as shares soar in Nasdaq debut". Reuters. June 12, 2025.
35. ^ a b Kauflin, Jeff. "Leading Digital Bank Chime Rolls Out Cash-Back Secured Credit Card". Forbes. Retrieved October 29, 2025.
36. ^ a b He, Raina (September 12, 2025). "New Chime Card™ offers 1.5% cash back and no annual fee". CNBC. Retrieved October 29, 2025.
37. ^ "Chime Financial, Inc.: Business Profile". Better Business Bureau. Retrieved May 6, 2024.
38. ^ "Online Banking". Chime. Retrieved June 27, 2022.
39. ^ Green, Rachel. "Chime's recent earnings marks the largest single equity investment in a neobank". Business Insider.
40. ^ "US challenger bank Chime launches Credit Builder, a credit card that works more like debit". Techcrunch. June 30, 2020.
41. ^ Chime, Current lead US banking app downloads in first half of 2021: reportBanking Dive
42. ^ Lang, Hannah (May 15, 2024). "Digital bank Chime debuts advance wage product ahead of anticipated IPO". Reuters.
43. ^ Fore, Preston (January 14, 2025). "Chime customers can file taxes for free on the app". Fortune.
44. ^ a b Zimmermann, Stephanie (September 30, 2022). "Chime refunds $977 amid Sun-Times questions, as neo-bank apps face thousands of consumer complaints". Chicago Sun-Times. Retrieved November 26, 2022.
45. ^ Rosenberg, Eli A. (May 27, 2021). "Whose "Bank" is it Anyway? State Enforcement Actions Against Chime Underscore the Pitfalls of Using "Bank" Terminology". Baird Holm Attorneys at Law. Retrieved November 26, 2022.
46. ^ "Chime has agreed to stop using the word "bank," after a California regulator pushed back". TechCrunch. May 5, 2021. Retrieved May 5, 2021.
47. ^ "CFPB Takes Action Against Chime Financial for Illegally Delaying Consumer Refunds" (Press release). Consumer Financial Protection Bureau. May 7, 2024. Retrieved May 29, 2024.
48. ^ Wile, Rob (May 7, 2024). "Biden administration orders online banker Chime to pay $4.55 million over delayed refunds to customers". NBC News. Retrieved May 29, 2024.