Challenger bank Chime raises USD 70 m in Series C funding

Monday 11 June 2018 10:57 CET | News

UK challenger bank Chime has announced raising USD 70 million in its Series C funding round led by Menlo Ventures.

Existing investors Forerunner Ventures, Aspect Ventures, Cathay Innovation, Northwestern Mutual, Crosslink Capital and Omidyar Network also participated.

The bank estimated its value at USD 500 million, raising more than USD 100 million in total funding, including the latest funding round. 

Chime is one of several digital-only banks that have emerged in recent years. Theyre generally known as challenger banks or sometimes neobanks.

Chime is one the latest challenger banks offering clients financial services directly on a mobile channel, without relying on branches. The bank has no monthly, minimum balance, overdraft or international transactions fees. Customers can make unlimited withdrawals at more than 30,000 fee-free MoneyPass ATMs and more than 30,000 cash-back locations.

Customers have to open a Spending Account -- a demand deposit account available from The Bancorp Bank. They then can open an interest-bearing savings account, subject to restrictions.

The interest rate on savings accounts is .01% APY -- but some online banks offer close to 2 percent.

Accounts are for personal use only and may be closed if Chime determines they are being used for business.

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Keywords: UK challenger bank, Chime, neobanks UK, Chime funding round
Countries: World