Chime to stop describing itself as a 'bank'

Chime was the target of an investigation by the California Department of Financial Protection and Innovation after it used ‘chimebank’ in its website address, as well as used ‘bank’ and ‘banking’ elsewhere in its advertisements.

As noted by AB, Chime made the decision to settle ahead of a deadline imposed by the regulatory body.

The US banking laws show that no outfit can represent itself as a bank or credit union unless it’s licensed to engage in the business of banking. The commission that pushed back on Chime issues such licenses and regulates state-chartered banks in the state of California through the Department of Financial Protection and Innovation.