The Decline of Chime

Plus, a consensus around SBF has emerged.

Number of the Week: $500 million (explanation below)

The Decline of Chime

In so many ways, Chime looks like the quintessential American neobank. Founded 10 years ago when anti-bank sentiment was still fresh from the Great Recession, Chime and its ilk offered customers fast, easy-to-use banking services without ever actually becoming a bank. And it was a quick hit; a 2018 New York Times article put it this way: “Chime, the biggest new name to pop up, has opened two million fee-free online checking accounts and is adding more customers each month than Wells Fargo or Citibank.” The company has raised a staggering $2.3 billion in startup capital, up through a rare Series G round, according to Crunchbase, with prestigious investors such as Tiger, Softbank and Sequoia. Chime has recently been valued at $25 billion, which puts it very near the top of all U.S.-based fintech companies.

But Chime, which has flirted with an IPO for years, has had a tough ride lately.