A financial institution that helps people to deposit money, give loans etc., are known as Banks. The main function of a bank is to lend money directly or indirectly, i.e., through capital markets. Banks are very important as it maintains the economic and financial stability in the country. Banking is believed to be evolved in the 14th century in Italy, and it was very much like modern banks because it functioned on lending and credit. Chime and Chase Bank are two such banks.
Chime Bank vs Chase
The main difference between Chime Bank vs Chase is that Chime bank is not a real bank. It provides personalised banking services, and it is owned by The Bankcorp Bank. While Chase Bank is bank which is a commercial bank, and it is America’s national bank. Chime Bank is a private bank that was started in the year 2013. Whereas Chase Bank is the very oldest bank of America and it was started in the year 1799.
Chime Bank is a bank which is owned by Central National Bank or The Bankcorp Bank. It is a private bank that was started in the year 2013. It is not a real bank as it provides only free mobile banking services. Users who open an account in Chime Bank get a Visa-Debit card to access online banking systems. All work of Chime bank is done through online mode. There is no physical branch of Chime bank. It has its headquarters in San Francisco, California.
Chase Bank is the very oldest bank which was started in the year 1799. It is America’s national bank which has its headquarters in Manhattan, New York City. It is a commercial and consumer bank, and it is a subsidiary of a U.S. multinational bank and JP Morgan Chase. Chase Bank has more than 5,100 branches and 16,000 ATMs in 100 countries globally. It is one of the biggest banks in America.
Comparison Table Between Chime Bank and Chase
| Parameters of Comparison | Chime Bank | Chase |
| Key People | Chris Britt and Ryan King | Jamie Dimon |
| Industry | Financial Services | Banking |
| Headquarters | San Francisco, California | New York City, New York |
| Revenue | US$200 million | US$115 billion |
| Interest Rates | 1% | 0.05% |
What is Chime Bank?
Chime Bank offers financial services and banking facilities to the account holders. It is an American financial technology company that was started in the year 2013. It provides banking services on mobile, and all the works are done through online mode only. A major source of revenue for Chime bank is through the collection of interchange fees. It does not charges any overdraft or monthly fees, and it offers an interest rate of 1% on deposits which is more than Chase. It doesn’t have any physical branches.
Currently, there are almost 8 million account holders in Chime bank. It was started as an alternative to the traditional banking system. It was founded by Chris Bratt and Ryan King, who are also CEO and CTO of the company. Chime Bank was launched on a public platform in the year 2014 on Dr Phil Show. It raised US$1.5 billion in the year 2020 from private funding. In the year 2018, Chime Bank acquired a startup company named Pinch. In the year 2020, Chime had a partnership with Dallas Mavericks.
Recently in May 2021, the word ‘bank’ was removed from Chime. Now it is only known as Chime. Chime offers many free services like an automated savings feature, early wage access and checking accounts with no minimum balance. If you want to open a saving account, then Chime is the best option as it is very easy to transfer money into the account with no foreign transaction fees. It also rounds up your savings in your savings account at the year ending. It has no extra fees, whether it be a monthly fee or minimum charges.
What is Chase?
Chase Bank was earlier called The Bank of Manhattan Company till 1955. Then it was merged with Chase National Bank. It was founded by a man named Aaron Burr in the year 1799. Chase National bank made many acquisitions of the smaller bank in the year 1920s. It was earlier a wholesale bank which used to deal in financial institutions. In the year 1955, Chase National Bank merged with the Manhattan Company to become Chase Manhattan Bank. Chase Bank is one of the four biggest banks in America.
Then Chase Bank came under JP Morgan of New York, which in turn merged with Bank One Corp. Chase is one of the subsidiaries of JP Morgan. The current Chairperson and CEO of Chase are Jamie Dimon since 2004. It is America’s National Bank which has its headquarters in New York City, New York. It has the assets of Washington Mutual in larger numbers. It has almost 5,100 branches, 16,000 ATMs which operates in almost 100 countries.
It has 2.5 lakh employees working. It has total assets of US$4 trillion and revenue of US$ 116 billion. Chase offers 0.05% interest on deposits per year which is less than Chime. Chase has better sign-up bonus offers. It is safe and trustworthy. It has a physical branch where you can easily deposit money. It offers an all-in-one solution for credit cards.
Main Differences Between Chime Bank and Chase
- Chris Britt and Ryan King are the founders and CEO, and CTO of Chime. Jamie Dimon is the current chairperson and CEO of Chase.
- Chime is a bank that offers Financial Services, and it is private. Chase is a bank which is a consumerised and commercial bank.
- Chime Bank has its headquarters in San Francisco, California, in the year 2013. Chase has its headquarters in New York City, New York, in the year 1799.
- Chime has a revenue of US$200 million. Chase has a revenue of US$115 billion.
- Chime offers 1% interest rates on deposits per year. Chase offers 0.05% interest rates on deposits each year.
Conclusion
Both Chime Bank and Chase are a type of banking system which offers services. Chime Bank offers financial services in digital mode. Whereas Chase offers traditional banking in the normal way. Chime is much better than Chase as it has very fewer fees, very flexible, better banking experience and mobile interface. It helps you to save money. Chase is better because it provides solutions for credit cards. It is a physical bank where you can deposit money easily.
References
- https://www.jstor.org/stable/43461408
- https://www.sciencedirect.com/science/article/pii/S0262407911625608