Chime, the San Francisco-based challenger bank known for its consumer-friendly features and lack of fees, has raised $70 million in Series C financing, led by Menlo Ventures. The round, which also included existing investors Forerunner Ventures, Aspect Ventures, Cathay Innovation, Northwestern Mutual, Crosslink Capital, and Omidyar Network, brings the company to over $100 million in total funding to date and values the business at around $500 million.
The startup is one of several challenger banks gaining popularity with a younger, millennial audience who sees no need for a bank with physical branches, and who are sick of being penalized by hefty fees for things like overdrafts or dropping below a minimum balance – fees that take advantage of consumers at their most vulnerable points in their financial lives.
As Chime points out, traditional banks charged consumers over $34 billion in fees in 2017. Its service, on the other hand, drops the consumer-facing fees.
There are no monthly ..