The Bancorp Bank and Chime have been in partnership for years, and since Chime's launch, it has heavily relied on this partnership to provide customers with banking features.
There's no doubt that this partnership has been beneficial not just for The Bancorp Bank and Chime, but also for us, the customers who have found Chime to be a convenient mobile banking option.
There's just so much happening in this partnership, and if you want to know more about it, I've explained how Chime works with The Bancorp Bank, so you'll better understand what the partnership is all about.
The Bancorp Bank Chime: How Does the Partnership Work?
Chime is not a bank itself and only relies on its banking partners to handle the banking features you see in both the Chime app and the Chime website.
In fact, banking with Chime has been convenient for all these years, thanks to its banking partnership with The Bancorp Bank that recently got renewed to a long-term partnership in June 2023.
The way this partnership works is very straightforward, and each partner has a crucial role to play. While The Bancorp Bank continues to maintain its key role as a banking partner and continues to hold Chime member deposit accounts, Chime, on the other hand, focuses on innovating its app to make it not only user-friendly, but also to make it support the latest digital banking technologies.
That's just how this partnership works.
What are The Bancorp Bank's Benefits in this Partnership
The Bancorp Bank, which is a subsidiary of The Bancorp, Inc., and an FDIC-insured member, is one of the two banks that handles Chime's banking feature, and this partnership has been very beneficial for both Chime and The Bancorp.
In fact, this long-term partnership has made The Bancorp Bank maintain its position as the leader in delivering banking sponsorships to non-banking institutions like Chime.
What Chime Benefits in the Chime-Bancorp Partnership
There are just a lot of benefits for Chime as there are for The Bancorp Bank, with the first being that Chime can proudly boast as a fintech company offering banking services and more, as compared to traditional banks.
Well, that's just the basics everyone knows about, but what Chime really benefits from this partnership is as follows:
1. FDIC Insurance for Customers
The Bancorp Bank is an FDIC-insured member. I believe you know what this means, right?
Well, if you don't, you should now know that banking with Chime means your funds (up to $250,000) are secured and backed up in case the bank or fintech company goes bankrupt. And Chime can offer this FDIC insurance thanks to its partnership with an FDIC-insured member bank.
2. Early Direct Deposits
We all know that direct deposits with Chime arrive two days earlier, right? Well, this is thanks to The Bancorp Bank. The Bancorp Bank handles direct deposits to your checking account and provides Chime with the banking ability to make the funds available as soon as they are received.
3. Access to ATMs Nationwide
Chime offers a network of over 50,000 fee-free ATMs nationwide, and while The Bancorp Bank doesn't primarily own ATMs, its affiliation with many ATM networks has enabled Chime cardholders to be able to withdraw funds at a vast majority of ATMs countrywide.
4. Streamlined Payment Processing for Your Visa Debit Card
The Chime card can come in very handy, especially when it comes to making payments and withdrawing funds from your Chime account. If your Chime debit card was issued by The Bancorp Bank, your payments with the card will be streamlined, as the bank holds a good reputation when it comes to managing banking cards.
Final Thoughts
The partnership between Chime and The Bancorp Bank offers a unique spin on traditional banking.
With its focus on affordability and mobile convenience, Chime is a good option for those who manage their finances digitally and prioritize fee-free transactions. To ensure the continuous good functioning of its banking feature, Chime is extending its current partnership with The Bancorp Bank to a long-term partnership.
This way, you won't only be banking conveniently with Chime, but confidently while knowing that your funds are held by an FDIC-insured member bank.
