SAN FRANCISCO, Jan. 12, 2016 /PRNewswire/ -- Today, Chime, a mobile bank account that comes with the Chime Visa® Debit Card, announced a new product offering designed to automate consumer banking and help members effortlessly save money, called Automatic Savings. Chime's latest product will help its current members and new enrollees form healthy financial habits by automating the process of setting aside money to a Chime Savings Account.
Chime members can open an interest-bearing Savings Account and enroll in Automatic Savings, which rewards members for developing a savings habit without complex budgeting or decision-making. Here's how it works:
- Members use their Chime Card to pay bills and make everyday purchases
- Chime rounds up each purchase to the nearest dollar and transfers the round up from the member's Spending Account to their Savings Account
- Chime pays members a 10% bonus on their weekly round ups
Chime has seen a huge demand for its service particularly among millennials who want more control over their finances, want to manage their banking via mobile, and prefer to pay with debit vs. credit. The introduction of Automatic Savings follows Chime's recent Millennial Money Mindset Report, which found that 93% of millennials believe setting aside money for savings is important, yet 40% aren't doing it. The latest product release aims to help millennials save by operating seamlessly in the background, helping them build healthy financial habits with little effort.
"We started Chime with a simple mission – to help our members save money and get ahead without a lot of hard work," said Chris Britt, CEO and Cofounder of Chime. "Millennials are looking to use their smartphone for almost all of their daily activities, and the same is true for banking. They want services that are available on demand and that help them save time and money. Saving money and managing finances can be hard and we're trying to make it easier. One of the best ways to form healthy financial habits is through automation, and our new savings program is one of many features we're developing to help our members stay in control and get ahead without a lot of effort. With Automatic Savings, our members can easily start taking small steps toward a healthier financial life."
Chime's research also indicated that 88% of millennials would rather not visit a physical bank branch, preferring to use banking apps and websites instead. The majority of respondents in the study said they do not get basic mobile features from their bank such as transaction notifications, and they would not recommend their current bank to a friend; the average NPS (Net Promoter Score) among millennials for their current bank is -6.
"Chime is transforming consumer banking with an innovative approach that's resonating with young consumers who are passionate about the product and love the Chime brand," said Satya Patel, General Partner at Homebrew, a Chime investor. "Chris and the Chime team are recasting the relationship that consumers have with their bank account by helping their members save money and get ahead. We're thrilled to be a part of it."
Chime members are offered an FDIC insured Spending Account (Deposit Account), including a Chime Visa Debit Card and an optional Savings Account; all made available by The Bancorp Bank; Member FDIC. There are no minimum balance requirements, no monthly fees, ATM transactions are fee-free at over 24,000 MoneyPass® locations and there is no overdraft feature so no need to worry about overdraft fees. Chime members can manage all of their banking needs wherever they go via the mobile app or website. This includes the ability to transfer funds, find fee-free ATMs, pay bills, view transactions and rewards, and contact Member Services. The Chime app sends balance notifications and real-time transaction alerts to give members peace of mind and keep them secure and in the know. If a member ever misplaces their Chime Card, they can temporarily block it right from the app, instantly. In addition, Chime members can get paid up to two days early1 when they fund their Chime Account through payroll direct deposit.
Chime is modern banking for the mobile generation designed to help members save money 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. At Chime, we believe banking can be good for people, and still be good for business.
For more information, visit chimecard.com.
Banking Services provided by The Bancorp Bank, Member FDIC. The Chime Visa Debit Card is issued by The Bancorp Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.
1 Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to payer's support of the feature and timing of payer's funding.