Fintech company Chime files for Nasdaq IPO

Financial technology company Chime on Tuesday filed paperwork to go public on the Nasdaq. The company intends to file under the ticker symbol "CHYM." "Chime is a technology company, not a bank," the company said in its prospectus, noting it's not a member of the U.S. Federal Deposit Insurance Corp. Still, the company cited Bank of America, Capital One, Citibank, JPMorgan Chase, PNC Bank and Wells Fargo as competitors. Most of Chime's new members who arrange for direct deposit previously did direct deposit elsewhere, "most commonly with large incumbent banks," the company said. According to the filing, Chime picks up revenue from interchange fees associated with purchases that members make with Chime debit cards and credit cards. Banks collect interchange fees, which are generally a percentage of the transaction value, plus a set amount for each transaction depending on the rates determined by card networks such as Visa. The banks then pass money on to Chime. In the March quarter, C ... Read full article.