22. Chime
Chime is the largest digital-only financial services provider in the US, and has capitalized on distrust of traditional banks and their slowness to adopt tech
Founders: Chris Britt (CEO), Ryan King
Launched: 2012
Headquarters: San Francisco
Funding: $2.3 billion
Valuation: $25 billion
Key technologies: Artificial intelligence, cloud computing
Industry: Fintech
Previous appearances on Disruptor 50 List: 4 (No. 15 in 2023)
Chime, the largest digital-only financial provider in the U.S., has capitalized on distrust of traditional banks and their slowness to digitize. Founded in 2012 in the wake of the financial crisis, Chime calls itself a fintech company, not a bank. It has grown with younger users making between $35,000 to $70,00 who are frustrated by banking fees.
"The trust levels that mainstream Americans have in banks is extremely low, and that was part of the opportunity that we pursued," Chris Britt, CEO of Chime, told CNBC.
The pandemic boosted Chime to its No. 1 position in the U.S. Now it's out to continue disrupting traditional banking giants Chase, Bank of America and Wells Fargo.
Like other fintechs, Chime faces an uncertain public offering market outlook. Chime's IPO plan, which was put on hold in 2022 during the "fintech winter," is now reportedly being considered for 2025. Britt said in a December interview that the company is "as IPO ready as a company can be" but said he would wait to see how the economy and stock market perform in the first half of 2024.
In a closely regulated industry, it's not just the big banks but also Chime that has garnered some negative attention given its size.
In February, regulators in California ordered Chime to pay a $2.5 million fine related to customer service failings.
Earlier this month, the Biden administration's Consumer Financial Protection Bureau told Chime it must pay $4.55 million for failing to issue refunds in a timely manner to customers who had closed their accounts with the firm — $1.3 million in compensation to consumers, plus a $3.25 million penalty — customer complaints that date back to the pandemic. There were thousands of instances where consumers who had closed their accounts with outstanding balances waited at least 90 days.
Last December, the company announced that it had appointed Shara Chang as its new chief compliance officer. Chang joined from Divvy Homes, where she was chief legal officer.
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This story originally appeared on: CNBC - Author:CNBC.com staff
