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Home / Business / Chime adds record number of accounts after Wells Fargo outbreak

Chime adds record number of accounts after Wells Fargo outbreak



The recent outbreak at Wells Fargo, which left some customers unable to use the debit cards, may have confused their customers, but it was good news for some startup banks.

Chime, a pure-play digital bank, opened nearly 10,000 new bank accounts over the last 24 hours, which was a corporate record, according to Chime's co-founder and CEO Chris Britt.

Britt did not exclude Wells in particular, but said many of these new customers were frustrated with their experience at major Main Street banks.

"We saw a big blow in the consumers reaching out to us on Twitter and other social media, with the general belief that many of them were just at the end of the rope," he said. "People are also singing our praises or asking questions [Chime]. Once upon a time we had a dialogue like," Hey, should I switch to you? Why should I switch to you? ""

Read more : Meet the start-up bank with millions of customers trying to disrupt the US office system "Adversarial"

Chime, founded in 201

3, offers customers a tax control account, which is rare among US banks . The largest US banks each year make around $ 1 billion in fee-related revenue.

With the dramatic increase in new customers, Britt Chime's total bank accounts consider three million in late February. Chime's monthly transaction volume peaks $ 1 billion.

The company is also close to raising $ 300 million on a $ 1.5 billion valuation, according to Bloomberg.

Wells Fargo experienced a major outbreak on Thursday after smoke was registered on one of the bank's main data centers. Outbreaks continued into Friday, the company said, although some of the ATM services have been restored and branches are in operation.

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