When it is equipped to publicChime is going all out to attract more customers.
The digital bank provides 3.75% APY for customers who agree to deposit their salary directly into a Zhongsheng savings or checking account. For those who don’t choose to deposit directly, the 2% interest rate for standard users remains competitive.
By comparison, the national average savings account yield is 0.61% APY. Institutional Investigation As of the week ending March 24.
Although Chime Chief Product Officer Madhu Muthukumar doesn’t fully state that, the move seems to be at least part of the goal of attracting more stickiness between customers. As of last summer, Chime had 7 million customers and $1.5 billion in annual revenue. Forbes. The company declined to provide updated figures.
In December, bell Submit confidential paperwork with the Securities and Exchange Commission. Chime last time worth $25 billion Raised $1 billion It is estimated that a total of $2.65 billion was raised during the valuation frenzy in 2021. Its investors include Pioneer Ventures, Menlo Ventures, Crosslink Capital, Sequoia, Softbank, Tiger Global, and more.
The company also declined to comment on the potential timing of an IPO.
Requires a senior membership
To qualify for 3.7% APY, Chime clients must agree to be a member of Chime+, a senior membership tier that requires that the agreement be deposited directly into their salary. No fee to join as a senior member.
Chime was founded in 2012 as a banking alternative to everyday Americans. It touts it without charges for overdrafts, maintenance or low balance fees or fees requiring a minimum account.
“These people are the people you find in the community, whether they are making coffee in a local store, teaching kids, packing or finding something in a big box retailer,” Muthukumar said. “This is your neighbor.”
He told TechCrunch that its client base is slightly female, while members are in the age range of the 30s, rather than “super young people” and are “employed.”
In 2020, Chime Start providing credit cards It claims to help users build and improve credit by setting purchase limits based on account balances and being more like a debit card. Now, members no longer need to apply for and use Chime’s credit builder visa credit card through Chime.
Other features Chime announced on Monday include a redesigned app, a “transaction” set or discount specifically for Chime users, a cashback offer and “dedicated” customer support. On March 21, it also announced a new “Instant Loan” Product.
Fintech companies continue to be creative in trying to attract customers. Last week, Robinhood announced that it will start Provide wealth management and private banking services For retail investors, this kind of service is touted as “no longer reserved for the rich.” As part of the new product, Robinhood said it will provide a 4% APY for savings and help with real estate planning and taxes. Uniquely, it will also provide cash delivery to users’ doorsteps.
