Hot Online Bank Startup Leaves Customers Without Access to Their Cash

Chime, an online banking startup with more than 5 million customers, has been suffering an outage for much of past 24 hours that has left customers without access to their money. The startup blamed the disruption on an unspecified issue with a payments processor and said data was not at risk.

The downtime comes as the digital bank has been growing quickly—the number of customers has almost doubled since March, to about 5 million. Chime is also in the process of raising a new funding round that could value it at more than $5 billion. A person familiar with the matter who ...