Chime to OPI expects to increase growth by paying higher interest rates

As you prepare to make public, Chime is in new features in an effort to attract more customers.

The Digital Bank offers customers to accept having their payment checks directly deposited in a bell savings account or a current account of 3.75%, tells Techcrunch exclusively. For those who do not choose to deposit directly, the 2% interest rate for standard users remains competitive.

In comparison, the national average savings account yield is 0.61% APy, according to Bankrate's Institutions survey As of the week of March 24.

While Chime's product director, Madhu Muthukumar, did not say it directly, the movement seems to be at least partly destined to attract more stickiness among customers. Until last summer, Chime had 7 million customers and $ 1.5 billion in annual revenues, according to reports from Forbes. The company refused to provide updated figures.

In December, Ring He filed the confidential paperwork to make the Bag and Values ​​of the US commission public. The bell was last valued at $ 25 billion when collected $ 1 billion In the apogee of the assessment frenzy of 2021, and has raised $ 2.65 billion in total, Pitchbook estimates. Its investors include Forerunner Ventures, Menlo Ventures, Crosslink Capital, Sequoia, SoftBank, Tiger Global and many others.

The company also refused to comment on the possible moment of the opi.

Premium membership is required

To be eligible for 3.7% APY, Chime customers must accept becoming members of Chime+, a premium membership level that requires the agreement to directly deposit their payment checks. There is no charge to join as a premium member.

Founded in 2012, Chime is marketed as the bank alternative for everyday Americans. It is promoted that it does not charge on the overlap, maintenance or low balance rates or require account minimums.

“These are people you would find in your community, whether they prepare a coffee in your local store, teach your children, deliver a package or help you find something in your retail retail,” Muthukumar said. This is your neighbor. “

His customer base leans slightly feminine, he told Techcrunch, with more members in the age range of the 30s instead of “super young people” and are “employees with remuneration.”

In 2020, Chime began offering a credit card that states that it helps users to build and improve their credit establishing purchase limits depending on the account balance and acting more as a debit card. Now, the members no longer have to deposit directly through Chime to request and use the Credit Builder de Chime Visa card.

Other features that Chime announces on Monday include a redesigned application, an expanded set of “offers” or discounts specifically for chime users, reimbursement and customer service offers “dedicated”. On March 21, a new one also announced Product of “instant loans”.

Financial technology companies continue to be creative when trying to cut customers. Last week, Robinhood announced that he was going to start Offer heritage and private bank management services For retail investors, promoting that these services “were no longer reserved for the rich.” As part of that new offer, Robinhood says he will provide a 4% APY on savings, as well as assistance with patrimonial planning and taxes, among other things. Exceptionally, it will also offer cash delivery to a user's door.