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Chime Surpasses Revenue Forecasts in First Earnings After Blockbuster IPO

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Chime reported second-quarter revenue that exceeded Wall Street expectations, marking a strong debut earnings report following its highly successful U.S. IPO in June. The digital banking firm generated $528 million in revenue for the three months ended June 30, up 37% from a year earlier and above analysts’ average forecast of $495.2 million, according to LSEG data.

The strong performance was driven by growing demand for Chime’s low-cost, digital-first financial services, which appeal especially to younger U.S. customers seeking alternatives to traditional banks with high fees and limited flexibility. Average revenue per active member rose 12% year-over-year to $245.

Purchase volume, representing transactions through Chime-branded debit and credit cards, increased 18% to $32.4 billion. The company’s CEO, Chris Britt, described the quarter as a “breakout” period, citing accelerating growth, expanding margins, and consistent product execution.

Chime’s offerings include a secured credit card for credit building, early direct deposit access, small-dollar loans, and a deposit sweep program that spreads funds across partner banks. Its payments-based banking model targets everyday Americans who often rely on debit transactions and have limited credit histories.

Gross profit for the quarter rose to $461 million from $333.7 million a year earlier, reflecting both higher transaction activity and consumer resilience in spending despite broader economic uncertainty. Since its IPO, Chime’s shares have risen about 25%, though they experienced minor volatility in after-hours trading.

Italy probes Revolut over alleged unfair practices in investment services

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Italy’s competition authority (AGCM) has launched an investigation into British fintech giant Revolut, focusing on allegations of unfair commercial practices related to its investment and banking services. The watchdog claims Revolut misled users by promoting zero-commission investments without clearly disclosing additional costs and limitations.

According to AGCM, Revolut failed to inform customers that its zero-fee products involve fractional shares, which differ significantly from whole stocks in voting and transfer rights. The regulator also highlighted that Revolut did not clearly warn crypto asset investors that stop-loss and take-profit settings—tools typically used to manage investment risks—could not be modified.

AGCM further accused Revolut of adopting an aggressive stance by suspending and blocking financial accounts without sufficient notice or assistance, restricting customer access to cash and related services for prolonged periods.

Inspections were carried out at Revolut Bank UAB’s Italian offices by AGCM and Italy’s finance police. Revolut said it is fully cooperating with the probe and remains committed to compliance and customer protection but declined to comment on specific details as the investigation is ongoing.

Revolut, valued at $45 billion last year, is one of the most successful European digital-only fintechs. The company aims to expand into mortgages and consumer lending to compete with traditional banks and grow its presence in the U.S.

Under Italian law, violations of consumer rights can result in fines ranging from €5,000 to €10 million.

UK Regulator Fines Monzo £21 Million ($28.6 Million) for Weak Financial Crime Controls

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Britain’s financial regulator, the Financial Conduct Authority (FCA), has fined digital bank Monzo £21.1 million ($28.57 million) for inadequate anti-financial crime systems and controls. The FCA highlighted failures in Monzo’s procedures between October 2018 and August 2020, including accepting customers who used well-known landmarks such as Buckingham Palace and 10 Downing Street as their addresses.

As Monzo expanded rapidly, it did not maintain sufficient safeguards to prevent financial crime risks, the FCA said in a statement issued Tuesday. After a 2020 review, the FCA imposed restrictions preventing Monzo from opening accounts for high-risk customers. However, from August 2020 to June 2022, Monzo repeatedly breached this requirement, onboarding over 34,000 high-risk customers.

Therese Chambers, FCA joint executive director of enforcement and market oversight, said, “Monzo onboarded customers on the basis of limited, and in some cases, obviously implausible information — such as customers using well-known London landmarks as an address. This illustrates how lacking Monzo’s financial crime controls were.”

Monzo’s CEO TS Anil acknowledged the issues but stressed that the problems have been resolved and substantial improvements have been made. Monzo remains committed to fighting financial crime.

Launched in 2015, Monzo is among the fastest-growing fintech firms in the UK. Yet, regulatory scrutiny has increased over financial crime controls in fintechs; Starling Bank was fined £29 million in 2024 for similar failings in anti-money laundering and sanctions screening systems.

Despite the fine, Monzo reported strong financial performance in its latest results, with pretax profit rising to £60.5 million for the year ending March 31, 2025, compared to £13.9 million the previous year. CEO Anil said it was too early to discuss a potential IPO.