Chime was founded in 2012 by Chris Britt and Ryan King in San Francisco. It’s the largest neobank in the United States by customer count, with over 22 million account holders. Chime’s pitch is straightforward: no monthly fees, no minimum balance requirements, no overdraft fees, and access to direct deposit up to two days early.
Like Mercury, Chime isn’t technically a bank. It partners with Bancorp Bank and Stride Bank, both FDIC-insured, to provide its banking services. The company makes most of its money from interchange fees — the small percentage merchants pay every time a customer swipes their Chime debit card.
Chime’s product lineup includes a spending account (checking), a savings account with automatic round-ups, and a secured credit card called Chime Credit Builder. The credit card doesn’t require a credit check and reports to all three major bureaus, making it popular with people trying to build or repair their credit scores.
SpotMe, another popular feature, lets eligible members overdraft up to $200 with no fees. Chime essentially fronts the money and deducts it from the next direct deposit.
Chime was valued at $25 billion in a 2021 funding round, making it one of the most valuable private fintechs in the US. The company has been widely expected to pursue an IPO, though timing has shifted multiple times. Chime is headquartered in San Francisco with offices in Chicago.
