Chime, which launched in 2013, is not a bank, but partners with The Bancorp Bank and Stride Bank to offer its customers financial products such as debit cards and Federal Deposit Insurance Corp. (FDIC)-insured deposits.
The California agency claims Chime has not adequately disclosed this distinction to its customers and ordered the fintech to distance itself from the use of the term “banking” and its derivatives by clarifying statements on its website, mobile app and in advertising.
