Fintech has risen to new heights following Chime’s recent fundraising round, giving the ‘challenger bank’ valuation of $14.5 billion, eclipsing Robinhood at $11.2 billion.
Chime is in a unique position. Investors continue to move away from acquiring shares in traditional banks and favoring pre-IPO fintech firms such as Robinhood and Chime that have thrived throughout the novel coronavirus (COVID-19) pandemic. Reports show the KBW Bank Index has lost a third of its value this year.
In a recent Series F fundraising round, Chime’s valuation has more than doubled since December, showing a 900% increase in value over an 18-month period when the company had a modest $1.5 billion valuation. Chime is now #25 on the CNBC 50 Disruptor list, pointing to the companies meteoric rise.
According to Chime CEO Chris Britt, “Nobody wants to go into bank branches, nobody wants to touch cash anymore, and people are increasingly comfortable living their lives through their phones,” further adding “We have a website, but people don’t really use it. We’re a mobile app, and that’s how we deliver our services.”
