Many millennials recognize the importance of saving but often find it difficult to follow through on actually setting aside funds. Mobile banking startup Chime wants to help them bridge that gap with a new program that enables its millennial users to save money without even thinking about it—and be rewarded for doing so. A mobile bank account that comes with a Bancorp Bank-issued Visa debit card, Chime now offers its members the option to open an interest-bearing savings account and enroll in the automatic savings program. Under the program, every purchase made with the Chime debit card is rounded up to the nearest dollar, with the extra amount deposited into the savings account. At the end of each week, Chime adds an extra 10 percent bonus on weekly round-ups to the saving account.
Chime’s recent Millennial Money Mindset Report found that 93 percent of millennials polled believed saving money was important, but 40 percent weren’t doing it. “Saving money and managing finances can be hard, and we’re trying to make it easier,” said Chime CEO and co-founder Chris Britt. “One of the best ways to form healthy financial habits is through automation, and our new savings program is one of many features we’re developing to help our members stay in control and get ahead without a lot of effort.”
A payments and technology veteran, Britt previously served as chief product officer for Green Dot, as well as leading Visa’s GPR product line. Chime is among the bevy of upstart mobile-based banks aiming to attract younger consumers, who want to conduct their banking via mobile device. Green Dot’s GoBank and Moven are among the pioneers in the U.S. market, while Tandem Bank, Atom Bank and Starling Bank are leading the way in the U.K.
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