Why 750,000 Millennials Use This Mobile-Only Bank
Earlier this week, Bank of America customers created an online petition encouraging the bank to re-open their free checking account program. With Bank of America’s eBanking, customers could avoid monthly maintenance fees as long as they did not use a teller for deposits or withdrawals. This kind of account was targeted toward Millennials and low-income families who can handle most of their banking transactions through an app or ATM.
The petition has already amassed 68,000 signatures, up from 48,000 yesterday. This shows how passionate Americans are about accessible free checking, and it is that passion that has fueled the growth of Chime, a mobile-only bank.
Chime is a low-fee checking and savings alternative designed for today’s world. The bank has no physical branches, but offers many of the same services as a traditional bank. Customers can set up direct deposits, pay for transactions with their Chime debit card, or withdraw funds for free at over 24,000 MoneyPass ATMs.
Chime says the average American household racks up $329 in bank fees every year. Their accounts include do not include any overdraft fees, minimum balance fees, monthly fees, ATM fees for in-network ATMs, or foreign transaction fees.
Chime was not the first mobile-only bank to enter the market, but it does have more users than Qapital, Digit, and other competitors. Chime currently has 750,000 users. With the frenzy surrounding Bank of America and other big banks with no free checking service, mobile-based financial services may see a tremendous boost in 2018.