Chime is set to quadruple its revenue in 2019 - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 57 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 51%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

Chime's lack of fees and aggressive marketing strategy are likely the cause of its nearly $200 million in revenue in 2019:

And nixing fees and spending a lot on marketing squeezes margins, making profitability even more difficult to attain. But despite that, Chime CEO Chris Britt claims the neobank could be profitable today if it reduced its marketing budget, per Forbes.

This relatively solid footing may be a result of convincing a large segment of its customer base to make direct deposits with the bank: More than 1 million customers have their paychecks sent to their Chime debit account, a source told Forbes, and if those clients are depositing their paychecks with Chime, they are much more likely to use their Chime card for transactions, driving interchange revenue for the neobank.

Going forward, Chime has plans to roll out several new banking products that could benefit its bottom line if it can cross-sell them to customers. Chime plans to launch a credit card in the first half of 2020 with personal loans and investment services on deck for the more distant future, Britt told Forbes.

These new products will give Chime additional opportunities to get greater value out of customers it can cross-sell them to, helping the neobank's profitability prospects in the long run., Business Insider Intelligence's expert product suite tailored for today's decision-makers in the financial services industry, delivered to your inbox 6x a week. >>

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in MY
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Apple NYC event announced for December 2019 to honor year's best apps - Business InsiderApple is holding an event on December 2 to highlight the best apps and games of the year in an unusual move.
Source: BusinessInsider - 🏆 729. / 51 Read more »