Digital Bank Chime Will Quadruple Its Revenue In 2019, Reeling In Direct Deposits

you’d like to do your banking on your smartphone. San Francisco-based Chime, which offers a debit card with no monthly or overdraft fees, has seen its revenue explode over the past year. In 2019, it will reach nearly $200 million, a fourfold increase over 2018, according to a person familiar with the matter. Now the company plans to expand into other products like credit cards and investment services in its quest to become a full-service digital bank.

Third, it has convinced more than one million people to sign up for direct deposit, having their paychecks sent to their Chime debit account, a source says. Reaching a large customer base is critical for Chime, partly because it doesn’t target affluent users. Its average customer is between 25 and 35 years old and earns between $35,000 and $75,000 a year.

Chime plans to launch a new, free feature to help users boost their credit scores next year, says CEO Chris Britt, although he declined to provide details. He also plans to launch a credit card in the first half of 2020 and eventually move into personal loans. After that he’ll launch investment services, such as low-fee exchange-traded funds and retirement services, potentially in 2021. Britt is also considering installment loans, where people can finance purchases in periodic payments.

Two other important indicators of profitability are how much it costs Chime to acquire a new customer and how much each customer is worth over his or her lifetime. Traditional banks pay $750 to acquire new customers whose lifetime value is about $4,500, according to Dan Rosenbaum, a partner at management consulting firm Oliver Wyman.

AiriBerry__

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Mastering the Art of French DiningA super-easy, super-helpful guide to the ins and outs of dining etiquette in Paris
Source: Eater - 🏆 368. / 59 Read more »

Morgan Stanley says global growth should recover in 2020 as trade tensions and monetary policy easeThe bank forecasts global economic growth of 3.2% next year, compared to 3% in 2019.
Source: CNBC - 🏆 12. / 72 Read more »

'Liberal arts' and coding as a 'second language': How hiring is changing for banks in AsiaBanks in Asia and the Middle East are gearing their hiring plans toward creative minds as they look to embrace the digital age, according to a panel of top executives.
Source: CNBC - 🏆 12. / 72 Read more »

The American Internet Sucks. The Alternative Is China.In a fragmenting world, will governments choose ruthless digital order over chaotic digital freedom?
Source: BuzzFeed - 🏆 730. / 51 Read more »

Venice hit by another exceptional high tide; worst week in 150 yearsReeling from devastating floods this week, Venice suffered another exceptional h...
Source: Reuters - 🏆 2. / 97 Read more »

This 32-Year-Old Entrepreneur Quadrupled Her Income Becoming A Black Travel ConsultantAs the black travel movement continues to grow, one entrepreneur has built a business educating major travel brands about diversity and inclusion.
Source: Forbes - 🏆 394. / 53 Read more »