Chime is laying off 12% of its workforce

https://techcrunch.com/2022/11/02/digital-bank-chime-is-cutting-costs-across-the-board-including-12-of-staff/

by mfiguiere • 4 years ago

29 8 4 years ago

gwilikers• 4 years ago

As someone who uses Chime, I’m working on switching to other banks. It’s a nice starter digital bank but their savings rate has lagged most other banks and I’m not sure what killer features they have that SoFi/Ally/etc. don’t also offer now.

Best wishes to those affected, I’m sure there’s a lot of talent that won’t have trouble finding something new.

fdgsdfogijq• 4 years ago

Yeah I started using it out of curiosity, its very bare bones and not sure why I would use it over Chase

mint2• 4 years ago

Wait, does that mean chime offers no meaningful interest like chase?

ajyey• 4 years ago

I was an ally customer for the longest time and their app and website have degraded in quality. Login is abysmally slow and there have been multiple times I was not able to login at all. Recently switched to capital one 360 and so far so good.

willio582• 4 years ago

I went to Chime from Simple, another app bank that eventually got triple-merged into one of the least mobile friendly banks out there. I still have like .12$ in some obscure bank. Recently I moved to use a simple top-5 bank account and it's fine as long as you know you'll never have overdrafts/you have a certain amount direct deposited monthly.

Really sad that banks like this can't figure it out, and when they do (Simple), they get bought out by legacy banks and fall into oblivion.

toomuchtodo• 4 years ago

You must be able to lend to sustain yourself; interchange rev is insufficient (especially with FedNow instant payments almost GA), and even becoming a lender is hard. You need to partner with a bank partner who has a charter, you have to be able to securitize the debt, etc.

Banks have a serious moat. Go where the margin is, and that isn’t deposit accounts. Like airlines, they’re a utility masquerading as a business.

WeylandYutani• 4 years ago

Digital banks are finding that you literally CANNOT make money with a simple checking account.

Banks make money with mortgages, loans, credit cards and other financial services. Hell banks would rather dump most of their customers if they were allowed to.

willio582• 4 years ago

Is this true? With Simple I believe they were profitable, they just decided to sell to BBVA to grow larger (and to let the founders get a huge pay day). Then BBVA sold to PNC, then PNC absorbed all its users.

Chime is laying off 12% of its workforce

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