In today’s busy life, who has the time to go wait in line at their local bank?

We’re living in the future, and in the future, why wouldn’t we access and manage our funds through modern, financially viable, and technically sound ways? Is this a fantasy?

No. Of course not. We can do all of that on our smartphones by the tips of our thumbs with Chime.

Its inventors, Chris and Ryan, two neighbors from sunny San Francisco, had the idea to revolutionize the financial system while having a friendly chat in the park.

And all without even charging overdraft or ATM fees.

How?

Well, Chime is a financial services provider, or a challenger bank to be more precise, that enables customers to open a checking account with no minimum balance required. There is also an automated savings feature, and users can access their wages earlier, which is pretty awesome. And, if you would like to build your credit history, Chime can also help you with that.

This is the story of the two neighbors who changed the field of online financial services forever. Read it here:

Neighbors And Friends

Growing up in sunny California in the 80s kept ambitious people’s dreams alive. Ryan, on the other hand, couldn’t make up his mind about what to study in college after having finished high school. So, he flipped a coin to make a decision between a degree in computer science or music. Heads made it computer science - and that was that!

With music as his hobby and software development as his soon-to-be vocation, Ryan took the challenge and became proficient in his field in a very short time. Jumping from workplace to workplace at Liberate Technologies, then Microsoft, and finally landing a VP of Engineering position at Plaxo, Ryan earned some valuable life experience.

One time, in a park midway between their homes, Ryan had coffee and a friendly chat with his friend, neighbor, Chris Britt. One topic turned to another, and soon the conversation birthed an idea for revolutionizing the banking system and helping people manage their funds without fees and other expenses that traditional banks have.

Don’t fees suck?

They both thought so - and the idea for Chime was born.

Chris was also born and raised in San Francisco but instead of software development, he obtained a degree in Economics from the University of Tulane, BA. His work experience had already been built up, as he had worked as a VP and General Manager at Comscore Networks, Senior Product Leader at Visa, Chief Product Officer at Greendot Corporation, Board Member at Bay Area, and a few other places.

Suffice to say, he was deep in the industry, and he was going deeper.

His main skill was maintaining financial health. He used to teach his neighbor Ryan a lot on the subject, and Ryan got inspired to do the same for his fellow citizens and future users. But it wasn’t all about the money - besides profit, Ryan and Chris were hunting change. It just goes to show that when you really want to make a change in the world - you can!

So, after some deliberation and a basic setup, in 2013, Ryan and Chris had some meetings, analyzed the market and created a vision for the future - and Chime was the result!

First Infusion Of Cash

To start things off, Chime received their first funding in 2013 as part of a seed round. They received $3.8 million in funding from three different investors that include Amino Capital, Irish Angels, and Lauren De Luca. Those funds, as the funding type name suggests, were used to create the building blocks for Chime as a company.

Ryan and Chris had a unique marketing plan, launching the company publicly in April 2014 on the popular American show Dr. Phil. Millions of future customers were touched by the story of the two founders and their altruistic vision of the future, and Chime’s ranks swelled quickly.

Next, in November 2014, a hefty $8 million were received as part of an Early Stage Venture investment from Crosslink Capital.

A total of $2.6 billion in capital has been raised by Chime throughout the course of ten rounds of investment. Their most recent round of fundraising, a Series-G round, was completed on August 13, 2021.

Products That Help You Grow

Ryan and Chris weren’t done, and their innovations were streaming into the financial world. After acquiring Pinch in 2018, Chime used its learnings and released their product Credit Builder - a Visa credit card, which albeit functions more like a debit one, it has a special feature: it helps customers build their credit score. As Chime’s customers are mostly millennials, this feature turned out very popular, helping young adults build their credit scores and keep track of their spending.

But more surprises were coming: in September of 2019, Chime announced SpotMe, a feature enabling users that are eligible to use it to make a purchase with their debit card with no overdraft fee, which was attractive, to say the least. To be eligible for Chime SpotMe, all you need is a Chime bank account and to have received direct payments totaling at least $500 in the past 31 days to be considered. Your eligibility will be maintained each month as long as you maintain the $500 direct deposit requirement.

People. Went. Nuts.

On top of that, during the stimulus aid for US citizens in the 2020 pandemic, Chime used this feature to bring their customers the $1200 stimulus check, with no overdraft fees whatsoever, a few weeks earlier than the state announced. They wanted to help the average American to pay his/her on time.

It was nationally lauded as an efficient service, but the concept for the program wasn’t just Ryan’s and Chris’ - business mogul Mark Cuban, also the owner of the Dallas Mavericks basketball team, chimed in as well. After setting up a sponsorship deal between the two, Chris and Mark have become even better buddies.

So, with all these benefits for its users, Chime makes most of their profits from interchange collection. They do not charge for overdrafts and there are no ATM withdrawal fees either.

The aforementioned features and products put Chime in the hearts of both the people and investors, so no wonder the company is prospering today!

Fan Of The Mavericks

In January 2020, Chime became a sponsor of the Dallas Mavericks, one of the NBA’s most popular teams owned by renowned investor Mark Cuban. Chime and the Mavericks made a multi-year strategic partnership, and they put their logo on the front left shoulder strap. Additional perks include exclusive category rights, as well as several advertising and community-focused marketing efforts as part of the agreement.

How Chime Prevails At The Moment

As a challenger bank, Chime has no physical branches except its headquarters in San Francisco. The company had $200 million in revenue in 2019, and total assets worth a staggering $5.8 billion in 2019. They have reported 8 million users in 2020, and Chime’s employees are adorably called Chimers.

Today, Ryan says that Chime’s main competitors aren’t other challenger banks, but traditional land-based banks. So how do they manage to stay on top of the competition? By putting themselves in the shoes of the average citizen, working out solutions, and providing features that benefit customers’ financial health and overall financial life.

Also, Chime has a very competitive interest rate on its savings account, which may assist the company in keeping foreign neobanks out of its market. But across the ocean, Revolut, N26, and many other European giants are waiting to enter the US market - and Ryan knows it.

Final Words

What differentiates and makes Chime unique is the member-oriented company strategy. When Chris and Ryan said that they wanted to make a change - they meant it. The company brought early relief funds to its customers, making sure they pay their bills and go about their normal lives in the stressful times of the COVID-19 pandemic.

The company has helped thousands of young adults maintain good financial health, providing their services without fees, and helping them with tools and tips to build their credit scores. They are truly an example of how a company should operate - making a change for the better!