Chime: My experience so far
in Banking, Insurance & Loans ·
Michelle Davis15 said:It’s all just cosmetic fluff. There is nothing revolutionary or fundamentally better here. Lowering fees isn't a revolution; a major bank like Chase will do that eventually if they're forced to. And freezing your card? Please, how is that groundbreaking? 🙂
Also, the idea of getting a "better" exchange rate is just misinformation. The interbank mid-market rate is the same for everyone on the planet. The only difference is that Chime offers a better deal because they take a smaller cut, whereas a big bank won't offer it because they don't have to yet. It's not a revolution; it's just slightly cheaper. Once they actually face real competition, those big banks will roll out the exact same features within a month.
On the flip side, a massive bank can afford to be cheap because they have huge volume. Chime can't really compete there because their transaction volume is tiny by comparison. They have to make a living too, and that comes from those fees.
Look, even though I’m a fan of the whole digital banking concept, this gets zero points from me. If they offered just two things—instant payments to any account worldwide and ATM withdrawals at any Mastercard or Visa machine—I’d jump into that headfirst. But as things stand, it looks like all these fintech startups are going to get absolutely crushed by Facebook with their Libra project once they start offering those services. That’s why people were up in arms against it, and why the fintechs are letting them play; they aren't seen as a threat. You have a Facebook account, you have a digital bank. As simple as that.
What's more, Facebook could completely eliminate transaction fees and just charge a monthly subscription. A billion users times $5 a month equals $60 billion a year. Now that's impressive.
Man, some of the nonsense written here. Like, everything is just wrong—from the interbank rate talk to the idea that banks only refuse to offer these things because they feel like it. Sure, maybe some can offer something similar for retail customers, but what about the business side?! Imagine if those CEOs saw the conversion rates they get as individuals versus the rates their companies get with 1000x more turnover. Plus, these “digital” banks don't come close to the revenue of traditional ones since they don't do loans, guarantees, overdrafts, letters of credit, etc. But then again, they don't have huge overhead either since they don't need a massive staff or physical branches, vaults, and whatever else...
Libra isn't regulated for any other reason than the fact that the US government is scared it might threaten the dollar. Just remember how it ended for everyone else who tried that.
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