Chime, a global FinTech company, has recently submitted a comment letter in response to a Request for Information from federal banking regulators in the US on the topic of bank-FinTech partnerships. Sharing more about the business and how it is working on behalf of Chime members across the country to keep their funds safe and continue unlocking their financial progress.
As the letter states, Chime’s direct relationship with its two longstanding partner banks has served to benefit millions of consumers. It states that its model is based on direct relationships with partner banks, not middleware; customer funds that are held in FDIC-insured accounts; and strong ledgering and daily reconciliation practices.
The letter states: “Chime is a FinTech that operates through direct, longstanding partnerships with two national banks – The Bancorp Bank, NA, and Stride Bank, NA, Chime’s banking partners provide services to consumers, Chime’s members, who access those services through technology solutions developed by Chime. Through this model, Chime, as a service provider to its partner banks, enables the banks to provide banking products that provide clear benefits to Chime’s members. Chime members are predominantly everyday Americans earning less than US$100,000 per year, many working in critical sectors of the economy and living paycheck-to-paycheck. Chime’s relationships with its partner banks are structured to emphasise effective risk management, compliance and consumer protection.”