US neobank Chime suffers major outage - Business Insider

Respondents to the online survey were representative of the US population on the criteria of age , gender, and living area. This data highlights that Chime has achieved a significant footprint in the region. But a major outage could hurt its growth trajectory in two ways: First, if customers are left in the lurch without access to their funds, they're much more likely to leave Chime; and second, the negative publicity surrounding the outage could discourage prospective customers.

Neobanks as a whole can't afford outages like these in their services, as it calls into question their usefulness relative to incumbent banks. Outages of online banking tools happen to all banks, but an online banking outage lasting more than 24 hours for a bank that extends its services exclusively through online channels is a disaster. on the road to profitability is to convince customers to use their neobank as a primary bank, which would boost both deposit and transaction volume.

But the prospect of suddenly losing access to banking services for an entire day or more could easily cause consumers to dismiss this possibility, as legacy banks at least have branches that can act as an analog failsafe option for customers to handle banking functions if online services go down., 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.

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