Cathay Innovation, Omidyar Network, Northwestern Mutual and returning investors lead funding for the mobile banking company
Chime, the leader in mobile banking that helps members avoid fees and automate their finances, today announces $18 million in Series B financing, led by global venture fund Cathay Innovation. With over 500,000 bank accounts opened since the company’s 2014 launch, this latest round of financing will be used to accelerate growth and to develop new products to improve financial lives.
“At Cathay, we look at fintech investment opportunities across the globe and we’ve never seen so much customer love for a banking service,” said Denis Barrier, General Partner at Cathy Innovation. “Chime members engage daily with the app and trust Chime as the deposit account for their paycheck. It’s much more than just a mobile app– with triple digit growth in new bank accounts, Chime has emerged as the clear leader in the US challenger banking segment.”
Cathay Innovation led the round from its $320 million venture fund and offers a global investment network bridging North America, Europe and China. Strategic investor Northwestern Mutual invested through its Future Ventures group and Omidyar Network through their Financial Inclusion platform. Existing investors Crosslink Capital, Aspect Ventures, Forerunner Ventures and Homebrew also participated in the round bringing Chime’s total funding to $36MM.
“Look at any of the headlines these days and it’s clear that traditional US banks continue to fail millions of Americans with adversarial practices and opaque fee structures” said Chris Britt, CEO and founder of Chime. “This financing allows us to rapidly scale a new approach to mobile banking that actually improves financial lives.”
Chime’s Bank Fee Finder exposed the impact of traditional banks’ predatory practices and found that on average bank customers pay $329 in fees annually. By eliminating overdrafts, Chime has saved its members an estimated $100MM in potential overdraft fees to date. Chime has also helped members increase their savings. While the majority of Americans have less than $500 in savings according to Bankrate, members who enrolled in Chime’s automatic savings program have increased their monthly saving by 3x.
Today, Chime’s product helps members in two key areas of financial management — spending and saving. Chime will use this latest investment expand into two other key areas — debt reduction and investing. Through a combination of product and partnership initiatives the company will expand their service as a connected, api-driven hub that lets members to choose the services they prefer and manage all of their finances through their Chime account.
Chime is the leader in mobile banking with an service designed to help people avoid fees, save money automatically, and lead healthier financial lives. Founded by financial and tech industry veterans Chris Britt and Ryan King, Chime has created a new approach to banking that doesn’t rely on fees, doesn’t profit from members’ misfortune or mistakes, and helps members get ahead financially. Chime members get a debit card, a Spending Account, a Savings Account, and a powerful app that keeps them in control. The Chime mobile app is available for iPhone and Android devices and has been featured as one of the best new Money Management apps on the App Store. To learn more about Chime visit www.chimebank.com.
About Cathay Innovation
Cathay Innovation is a global venture capital fund, created in affiliation with Cathay Capital Private Equity. It was founded around the shared conviction that supporting digital entrepreneurs by providing them with a platform bridging 3 continents – North America, Europe and China – constitutes a particularly powerful value-creation strategy. As a multi-stage fund, Cathay Innovation partners with visionary entrepreneurs, committed to driving change through technology. Such transformation is accelerated by leveraging Cathay Capital Private Equity’s extensive network with corporates and solid experience in operational excellence. Cathay Innovation has offices in San Francisco, Paris, Beijing and Shanghai. To learn more, please visit www.cathayinnovation.com.