Abstract

The case “Chime: Leading the Pack of Neobanks in the US” talks about the journey of Chime from a fintech startup to a strong challenger bank in the US. The case highlights the factors that led to Chime emerging as a leader in the neobanks landscape in the US. It starts out with a brief history of the bank and then goes on to describe Chime’s innovative products and services launched over the years which helped it to connect with millennials. The case also highlights the competitive landscape in the US digital banking industry and how Chime was facing stiff competition from others players such as Venmo, Varo, and Simple. The case ends with the challenges Chime faces in its bid to sustain its competitive position and the future plans of the bank.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Identify the strategies used by a digital bank to create a differentiated position with respect to its competitors.
• Analyze the business model used by a fintech startup to disrupt an industry.
• Examine the challenges faced by a company in creating a sustainable competitive position in the industry.

Keywords

Competitive Advantage; Competitive Strategies; Retail Banking; The Digital Age of Banking; Evolution of Startups; Technology Based Channels; Retail Banking; Corporate Valuation; Neobanks; Challenger Banks; Digital Banking; Banking Disruption