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The graveyard of failed neobanks is crowded, but the front-runner of US neobanks is Chime, which has a strong culture of compliance and following regulations, w
by calderwoodra 3y ago
The graveyard of failed neobanks is crowded, but the front-runner of US neobanks is Chime, which has a strong culture of compliance and following regulations, while also being fee free.
They only have 3 revenue streams: interchange, small dollar loan interest fees and tips.
Interchange fees are paid by businesses, not customers. Loan fees exist to offset the cost of their interest payments/fraud risk giving out loans. Tips exist to offset the cost of their fee-free overdraft protection/"spot me" feature.
- calderwoodra 3y agoI'll also add that it's great they're able to exist, as a large portion of their customers are actually banned from traditional banks. A great resource/read for learning about the "unbanked" is "The Unbanking of America".