The recent outage at Wells Fargo which left some customers unable to use their debit cards may have infuriated its customers, but it was good news for some upstart banks.
Chime, a pure-play digital bank, opened nearly 10,000 new bank accounts over the past 24 hours which was a company record, according to to Chime’s co-founder and CEO Chris Britt.
Britt didn’t single out Wells specifically, but said many of these new customers were frustrated with their experience at big Main Street banks.
“We definitely saw a huge uptick in consumers reaching out to us on Twitter and other social media channels, with the general sense that a lot of them were just at the end of their rope,” he said. “People either singing our praises or asking questions about [Chime]. We even had some dialogue like, ‘Hey, should I switch to you guys? Why should I switch to you guys?'”
Chime, founded in 2013, offers its customers a fee-less checking account, which is rare among US banks. The biggest US banks each make around $1 billion a year in fee-related revenue.
With the dramatic rise in new customers, Britt estimates the Chime’s total bank accounts will hit 3 million by the end of February. Chime’s monthly transaction volume tops $1 billion.
The company is also close to raising $300 million at a $1.5 billion valuation, according to Bloomberg.
Wells Fargo experienced a large-scale outage on Thursday after smoke was detected at one of the bank’s main data center facilities. The outage continued into Friday, the company said, though some of its ATM services have been restored and branches are operational.
Sign up here for our weekly newsletter “Wall Street Insider,” a behind-the-scenes look at the stories dominating banking, business, and big deals.
When Amazon CEO Jeff Bezos decided to accuse David Pecker, the CEO of National Enquirer’s parent company, of blackmail on Thursday, he chose an interesting way to do it: a post on Medium. Medium is a blogging media site founded by Evan Williams, one of the founders of Twitter. Bezos also tweeted about his blog...
Brexit is right around the corner — and people are starting to freak out. The tech industry has asked for more clarity over the form of Britain’s exit of the European Union for the past two years. But now, with just two months to go, there’s still no clear answer over how it will look,...