| Description |
1 online resource : illustrations |
| Series |
SAGE Business Cases |
|
SAGE Business Cases
|
| Summary |
The case explains the growth and sustainability challenges experienced by Chime Inc. (Chime), which is the most valuable fintech startup in the United States. Chime is a neobank that primarily serves U.S. retail consumers, and it has the largest market share among digital-only banks. In contrast to other neobanks, Chime is profitable. It offers value propositions similar to other neobanks, such as free checking accounts, in contrast to practices of traditional banks, which levy heavy banking fees, making banking services inaccessible to lower-income consumers. However, critics are unsure about the long-term sustainability of neobanks as they target the unprofitable customer segment and do not leverage traditional bank approaches for income, i.e., through lending. Apart from this, the neobanks do not have a bank charter, and critics are pessimistic about the economic feasibility of their business model. Chime itself works in alliance with two traditional banks, which allied with Chime to take advantage of its fintech tools managed over apps. Critics believe traditional banks, in the long run, will not need these alliances as they could develop such apps internally. By February 2021, Chime had 12 million customers, but the business model's sustainability challenge remains. How can Chris Britt, Chime co-founder and CEO, make the business model of Chime more sustainable? How can he ensure long-term partnerships with banks? The case encourages students to explore how businesses can benefit lower-income consumers while also making profits simultaneously. It also helps students to understand the dynamics of strategic alliances between two firms |
| Bibliography |
Includes bibliographical references |
| Notes |
Description based on XML content |
| Subject |
Internet banking -- Case studies
|
|
Bank management -- Case studies
|
|
Bank management.
|
|
Internet banking.
|
| Genre/Form |
Case studies.
|
| Form |
Electronic book
|
| Author |
Bhattacharya, Saurabh, author
|
| ISBN |
9781529610482 |
|
1529610486 |
|
