Bloomberg Law
May 5, 2021, 7:11 PMUpdated: May 5, 2021, 8:52 PM

California Prohibits Fintech Chime From Calling Itself a Bank (1)

Lydia Beyoud
Lydia Beyoud
Fintech & Regtech Reporter

California’s financial regulator banned online consumer financial services app Chime from calling itself a “bank” or using the term “banking” in its marketing materials, a settlement from a broader inquiry into fintech companies’ marketing practices in the state.

Chime must change the name for its chimebank.com web address by May 15, according to the administrative settlementannounced Wednesday by California’s Department of Financial Protection and Innovation.

The San Francisco-headquartered fintech company also must disclose—on its website and in its advertising—that the financial services it provides are offered through a named banking partner, the DFPI said.

The agency started an ...

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