Chime Has More Primary Customers Than Chase With More Than 38 Million Customers🤯
Hey FinTech Fanatic!
Yesterday I shared with you that Chime is planning to go public in 2025. Soon after the news broke, Cornerstone Advisors big man Ron Shevlin published interesting research data about Chime.
Cornerstone Advisors has determined that Chime boasts over 38 million customers, surpassing the combined customer base of neobanks like SoFi, Dave, MoneyLion, and Current. Despite this, there's a discrepancy with the figures reported by other FinTech companies.
Dave reports catering to 10 million members with services such as banking, financial advice, overdraft protection, credit building, and assisting in finding additional work opportunities. This is in line with MoneyLion, which disclosed in its Q2 2023 securities filing that it has close to 10 million customers.
These statements might both be accurate, yet the Cornerstone survey specifically inquired about customers who have a checking or payment account. It's conceivable that not every one of the 10 million customers of Dave or MoneyLion possesses these types of accounts.
Out of Chime's 38 million customers, approximately half regard the neobank as their main checking account provider. This translates to 8.1% of the adult population in the U.S.—encompassing 12.3% of Gen Zers, 9.5% of Millennials, 7.5% of Gen Xers, and 2.9% of Baby Boomers.
By comparison, Wells Fargo holds an 8.5% market share, while JPMorgan Chase, the country's largest bank by assets, serves 7.6% of Americans as their primary checking account provider.
Contrary to what one might expect, Ron Shevlin points out that Chime has more primary account customers than JPMorgan Chase & Co. Which sounds hard to believe, but if so, they are definitely ready for an IPO. What do you think? Let me know!
Enjoy more FinTech industry news I listed for you below, and I'll be back in your inbox with more tomorrow!
Cheers,
#FINTECHREPORT
🇱🇹 The FinTech Landscape Map Lithuania & report by Invest Lithuania is out.
📃 Check out ‘Banking transformed’ white paper by Jim Marous. The research indicates that most legacy financial institutions do not meet the level of engagement of the leaders. Click here to learn more
INSIGHTS
🇪🇺 New EU AML laws ban all anonymous crypto payments. The EU has taken a significant step towards curbing money laundering activities by approving anti-money laundering laws (AML). The legislation, which was met with some opposition, aims to restrict both cash and cryptocurrency payments to increase transparency and financial oversight.
➡️ The evolution of money movement, and of banking, are intrinsically linked. That’s why, as money became digitized and embedded, so too did banking, via the first iteration of the banking-as-a-service (BaaS) model.
“BaaS 1.0 was, in some ways, tech companies focused on enabling tech companies. They would build a cloud core and bring together all kinds of third-party vendors to manage what we would call money mobility. The use cases were varied, and the source of the funds created a lot of risk and exposure as they ramped up fast with many startups, many different industries, all with small banks,” Ingo Payments CEO Drew Edwards told PYMNTS CEO Karen Webster.
That’s why, as Edwards explained, the time is ripe for BaaS 2.0 — an evolution which entails a shift away from API-enabling numerous third-party providers toward burgeoning sender-centric ecosystems that embed digital banking capabilities into their payout workflows.
“I don’t think for a minute that banking-as-a-service is going away, or that this concept of embedded banking is going away,” Edwards said.
Check out the complete interview to learn all about this:
FINTECH NEWS
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PAYMENTS NEWS
🇮🇳 Leading banks, such as State Bank of India and Axis Bank are looking to increase their UPI market share by making innovations in their mobile application that can be used by both customers and non-customers. Armed with a third-party application provider licence, they are seeking to get aggressively into the space currently dominated by PhonePe, Google Pay and Paytm.
🇮🇳 Federal Bank launches Flash Pay through NPCI partnership. Following this announcement, Flash Pay will be available to use during transit at NCMC-enabled metro stations without the need for having to stand in a queue line in order to buy tickets or cards from the respective metro stations.
🇵🇹 Klarna is now serving more than 600,000 users in Portugal and 2 million users in Spain. Just over two years after entering Portugal, Klarna has a user base of 600,000 and coverage that extends to 3,000 brands (national and international). Read more
Google Wallet requiring device unlocks for every tap to pay transaction. In recent days, some Google Wallet users have noticed that they’re being prompted to always unlock their Android phone for tap to pay regardless of the transaction amount. In some countries, you don’t need to unlock your device for “smaller payments.” For example, there’s a €25 threshold in Belgium, €30 in France, or €50 in Germany. It varies by country and issuer, while “you can only make a limited number of locked transactions before your phone asks you to unlock it.”
OPEN BANKING NEWS
🇬🇧 PayPoint named open banking supplier to UK central and local government. PayPoint revealed it has been named as a supplier on the Crown Commercial Service’s (CCS) Open Banking Dynamic Purchasing System (DPS) framework, used by all public sector buyers seeking official suppliers of Open Banking services.
DIGITAL BANKING NEWS
🇬🇧 Nationwide payments outage overshadows Virgin Money takeover. Nationwide customers were unable to send or receive payments for much of Friday morning (22 March). According to the BBC, customers reported that money had left their accounts upon making a payment but the funds had not appeared in the receiving account.
🇸🇦 Mobile banking app for kids and teens, Cashee, to launch in Saudi Arabia. Cashee describes itself as “a banking and financial education platform” and says it’s “empowering youth to create better money habits”. Once launched, it will offer a free mobile app and a prepaid Visa card to youth aged six to 18 years.
🇵🇭 UNO Digital Bank, Singlife team up to offer insurance. The two companies said they are leveraging the country’s rise to upper-middle-income status and the anticipated surge in health insurance demand to expand access to affordable and accessible insurance in the Philippines.
🇫🇷 N26 Crypto Arrives: Broadening investment options for French users. N26 has launched N26 Crypto, a new cryptocurrency trading product aimed at optimizing the customer experience in France. This latest offering enables N26 customers in France to invest in over 200 cryptocurrencies directly through the N26 application.
🇩🇪 Revolut is the first digital bank in Germany and one of the first in Europe to launch their own eSIMs and global data plans. With the new Revolut eSIM, customers can now use their mobile data abroad and avoid roaming charges. No physical SIM card required - just activate via the Revolut app and get started.
🇰🇪 Access Holdings, Coronation Group ink deal with M-Pesa to tackle regional remittance. The partnership signifies the fusion of collective expertise, resources, and an unwavering commitment to drive financial inclusion, empowering millions throughout Africa. The collaboration is subject to approval from the Kenyan financial authorities.
🇺🇸 Is Chime ready for an IPO? It has more primary customers than Chase. According to a survey, Cornerstone Advisors estimates that Chime has more than 38 million customers— more than the number of customers of neobanks SoFi, Dave, MoneyLion, and Current combined. Of Chime’s 38 million customers, about half consider the neobank to be their primary checking account provider.
BLOCKCHAIN/CRYPTO NEWS
🇳🇬 Binance exec escapes Nigerian custody. A presidential spokesman has now told Bloomberg that Nadeem Anjarwalla has escaped from the guest house where he was being detained. Amid speculation that he has fled the country, Nigeria is working with Interpol to secure an international arrest warrant for him.
🇺🇸 Binance follows Circle and drops USDC support on Tron. Crypto investors using Binance have been given 12 days to either convert, transfer or cash out their TRC-20 USDC tokens from Binance. More on that here
🇺🇸 FTX's victims may get all their money back. The judge sentencing Sam Bankman-Fried might not care. Judge Lewis Kaplan precluded all talk of the bankruptcy proceedings from the monthlong trial. Bankman-Fried's criminal culpability rested on intent to defraud, not how much money customers actually lost, he ruled.
DONEDEAL FUNDING NEWS
🇸🇬 Ant Group injects another S$200 million funding into ANEXT Bank. The latest investment marks a continued commitment from Ant Group, following a near US$188 million capital boost previously, bringing its total investment in ANEXT Bank to roughly US$502.61 million, according to DealStreetAsia.
🇺🇸 FundGuard closed a $100 million Series C funding round led by Key1 Capital. The new money - which comes two years after a $40 million Series B - will be used for product innovation and onboarding of existing and new customers. Read on
🇮🇪 Ireland’s FinTech funding slumps. 2023 saw a 94% decline in funding for Irish FinTechs, according to recently published research. The biannual report from KPMG, Pulse of FinTech H2'23, shows that Irish FinTechs attracted just $60.83m in 2023 compared to more than $1bn raised in the previous year.
MOVERS & SHAKERS
🇬🇧 Wise taps Delivery Hero’s executive for the CFO role. Emmanuel Thomassin will join the London-listed fintech on 1 October 2024. He will be the permanent replacement of Matthew Briers who stepped down recently. Read full article
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