US app-based bank Chime passes one million customer mark, raises $70m

US app-based bank Chime passes one million customer mark, raises $70m

US mobile banking startup Chime has raised $70 million in a Series C funding round led by Menlo Ventures.

The new round of funding comes just weeks after the three-year old bank passed the one million customer mark, with growth attributed to its no-fees policy and user-friendly banking app. The company says it is adding 100,000 customers a month for the service, which provides an accompanying debit card - on which the business earns interchange revenue - and auto-savings account.

The funding, which values the challenger bank at $500 million, will be used to grow its 80-person strong team and move the business into new areas, such as credit financing and support.

“We think the next phase for us is going to be helping our members manage their credit and loans more effectively,” co-founder and CEO Chris Britt told TechCrunch. “We think we can play a role in providing short-term lines of credit and helping members manage their debt.”

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