Chime Acquires Pinch to Help Millennials Build Credit and Launches New Products

Chime, the no-fees mobile bank valued at $500 million, has made its first acquisition with startup Pinch, known for helping millennials build better credit. Pinch’s service, PinchRent, allowed users to increase their credit scores by reporting on-time rent payments to credit bureaus. This acquisition comes at a time when many millennials struggle with low credit scores and prefer debit over credit.

Since its founding in 2016, Pinch has helped over 80% of its users increase their credit scores by 10 to 100 points. The startup was in talks with Chime before its closure, and the deal was finalized this week. The acquisition includes Pinch’s core team and founders Maia Bittner and Michael Ducker, who will assist Chime in launching credit and lending products in the coming months.

Chime CEO Chris Britt emphasizes the importance of helping millennials with their credit needs, especially in a time when student loan debt is prevalent. Chime aims to provide millennial-focused products to address these challenges. With over 1.7 million bank accounts on its platform and growing, Chime is positioned as a leader in the mobile banking space.

In the future, Chime may explore investment options, but for now, the focus remains on guiding users along their financial journey. Britt stresses the importance of responsible financial practices before venturing into investing, highlighting the company’s commitment to its users’ financial well-being.