US challenger bank Chime collects $70m

US challenger bank Chime has raised $70m in Series C financing, bringing the company’s total funding to over $100m.

The round was led by Menlo Ventures with participation from existing investors Forerunner Ventures, Aspect Ventures, Cathay Innovation, Northwestern Mutual, Crosslink Capital and Omidyar Network.

With consumers rapidly switching from traditional banks, Chime recently surpassed one million bank accounts to date and over $4.5B in total transaction volume. It expects to reach $10bn in transaction volume by the end of 2018.

In addition to investing in growth and responding to increased consumer demand, the company will use this latest round of funding to expand operations and deploy new features and partnerships that help members across all aspects of their financial lives.

“Traditional banks are failing to meet the changing needs and expectations of millions of Americans,” added Chris Britt, CEO and founder of Chime. “There’s too much friction in consumer banking, and the days of big banks profiting from customer misfortune are ending. Your bank shouldn’t be your adversary. We make banking easier and help our members achieve long-term financial health.”

Founded by financial and tech industry veterans Chris Britt and Ryan King, Chime offers a modern, mobile and connected approach to banking that gives members complete control of their finances. Chime members receive a Chime debit card, a spending account, a savings account, and a mobile app that keeps members in control.

The FinTech claims to be a more simplified, connected approach to banking that helps members avoid fees, save money automatically, and stay on top of their finances.

While most Americans pay more than $27 a month on average in bank fees, Chime doesn’t charge overdraft fees, monthly fees or foreign transaction fees. With its mobile banking app, Chime members avoided more than $225m in potential overdraft fees from traditional banks in 2017 alone, while putting over $72m into savings accounts with help from Chime’s automated savings tools.

Copyright © 2018 FinTech Global

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