I recently moved my primary checking from capital one to chime. But honestly, I think chime could be a future takeover for capital one. Which would bring in the credit card piece they’re missing and increase their interchange profit as capital one now has their own card processing network in Discover also offering debit cashback using the Discover network which Discover already does on their own free digital only checking account.. that would be a trifecta that be hard to resist for a lot of middle income people.
I enjoyed this one, thanks for taking the time to write this up. It's striking to me that Chime is FinTech on the hardest mode possible:
Combination of 1.) Cap on growth by way of regulatory arbitrage... where if Chime gets bigger, their sponsor banks grow in deposits and 2.) Ceiling on number of debit-centric individuals and households
What would they have to do right over the next 5 years for investors to have confidence?
I recently moved my primary checking from capital one to chime. But honestly, I think chime could be a future takeover for capital one. Which would bring in the credit card piece they’re missing and increase their interchange profit as capital one now has their own card processing network in Discover also offering debit cashback using the Discover network which Discover already does on their own free digital only checking account.. that would be a trifecta that be hard to resist for a lot of middle income people.
I enjoyed this one, thanks for taking the time to write this up. It's striking to me that Chime is FinTech on the hardest mode possible:
Combination of 1.) Cap on growth by way of regulatory arbitrage... where if Chime gets bigger, their sponsor banks grow in deposits and 2.) Ceiling on number of debit-centric individuals and households
What would they have to do right over the next 5 years for investors to have confidence?