Mobile Banking Startup Chime Raises $70 Million Led by Menlo Ventures
Chime, a mobile-first alternative to traditional banking, recently hit 1 million users and has processed over $4.5 billion to date. Its platform offers a number of familiar elements designed to simplify the banking experience, including a Visa debit card, a spending account, and an optional savings account.
It’s official: #1MILLION & counting! 🎉
“We’re thrilled to usher in a new era in consumer banking and serve the many Americans who we believe are frustrated with traditional banks." – @chrisrbritt Chime Co-founder & CEO pic.twitter.com/EBCrixz11g
— Chime (@Chime) May 16, 2018
“We think the next phase for us is going to be helping our members manage their credit and loans more effectively,” Chime CEO Chris Britt explained in an interview with TechCrunch. “We think we can play a role in providing short-term lines of credit and helping members manage their debt.”
Chime’s growth is accelerating, it’s gaining around 100,000 new bank accounts each month and anticipates adding more than $5 billion in transaction volume before the end of 2018. To keep up with this growth, Chime plans to expand its 80-person team in San Francisco to over 100.
In the same interview with TechCrunch, Britt touched on what he believes the major driver of users making the decision to forego the more traditional banks for Chime.
“What I wanted to do with this company was create a product that would serve more mainstream consumers – people who actually had accounts at [Bank of America] and Wells Fargo, but just aren’t particularly satisfied with those guys for variety of reasons – probably first, and foremost, the way they structure the products are quite punitive.”
Additional investors that participated in the recent fundraising round include Forerunner Ventures, Aspect Ventures, Cathay Innovation, Northwestern Mutual, Crosslink Capital, and Omidyar Network.