US neobank Chime was hit by an outage that lasted more than 24 hours:
Respondents to the online survey were representative of the US population on the criteria of age , gender, and living area. This data highlights that Chime has achieved a significant footprint in the region. But a major outage could hurt its growth trajectory in two ways: First, if customers are left in the lurch without access to their funds, they're much more likely to leave Chime; and second, the negative publicity surrounding the outage could discourage prospective customers.
Neobanks as a whole can't afford outages like these in their services, as it calls into question their usefulness relative to incumbent banks. Outages of online banking tools happen to all banks, but an online banking outage lasting more than 24 hours for a bank that extends its services exclusively through online channels is a disaster. on the road to profitability is to convince customers to use their neobank as a primary bank, which would boost both deposit and transaction volume.
But the prospect of suddenly losing access to banking services for an entire day or more could easily cause consumers to dismiss this possibility, as legacy banks at least have branches that can act as an analog failsafe option for customers to handle banking functions if online services go down., Business Insider Intelligence's expert product suite tailored for today's decision-makers in the financial services industry, delivered to your inbox 6x a week.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stock market investing: US versus global equities trend set to reverse - Business InsiderMORGAN STANLEY: US stocks are poised to end their worldly dominance for the first time since the financial crisis. Here’s the best way to profit from that shift.
Read more »
Facebook deletes fake accounts from Iran, Russia ahead of US election - Business InsiderFacebook CEO Mark Zuckerberg said the social media platform is prepared to fight interference in the 2020 election, but the task is never-ending.
Read more »
3 US Army soldiers killed, 3 injured in Georgia training accident - InsiderThree US Army soldiers were killed in an incident involving a 37-ton Bradley Infantry Fighting Vehicle on Sunday in southeast Georgia.
Read more »
U.S. business investment downturn could pressure slowing economyU.S. business investment contracted more sharply than previously estimated in th...
Read more »
U.S. business investment much weaker in second-quarter than previously estimatedU.S. business investment contracted more sharply than previously estimated in th...
Read more »
U.S. Commerce chief: U.S.-China trade deal doesn't need to be inked next monthThe initial U.S.-China trade deal does not need to be finalized next month, the ...
Read more »