Latest news with #digitalbanking
Forbes
11 hours ago
- Business
- Forbes
Buy, Sell Or Hold Chime Stock?
NEW YORK, NEW YORK - JUNE 12: CEO of Chime, Chris Britt, center right, rings the opening bell during ... More the company's initial public offering at the Nasdaq MarketSite on June 12, 2025 in New York City. Chime offers on-line banking and digital financial services. (Photo by) Chime Financial (NASDAQ: CHYM), a fintech company, made its market debut last week. Although the stock initially soared nearly 40% above its IPO price of $27, opening at $43, prices have since declined, with the stock currently trading just below $35. While post-IPO fluctuations are common, what does the investment outlook for Chime look like? Chime is a neobank, which is primarily a digital-first banking firm that operates without brick-and-mortar locations. Chime specializes in providing affordable financial services through modern, mobile-first platforms. This strategy has resonated with younger users and underserved groups, especially those deterred by the high fees and requirements of traditional banks. Chime implements a no-fee structure, allows early access to direct deposits, and offers a streamlined app experience, setting itself apart from many conventional banks. Some of the company's well-received services include "MyPay," which enables customers to access as much as $500 of their paycheck early, while the "SpotMe" service offers no-fee overdraft protections. Chime asserts that it serves a predominantly underserved audience, estimating that it currently reaches under 5% of the approximately 200 million Americans earning less than $100,000 annually. This presents a substantial opportunity for expansion. Fintech company Circle, which operates in the stablecoin sector, also went public recently. Can Circle Stock Top $300? Chime operates on a relatively straightforward business model. It derives most of its revenue from interchange fees, which are the minor costs merchants incur whenever a customer uses their Chime debit or credit card. Furthermore, unlike some competitors such as SoFi, Chime does not function as a bank itself. Instead, it collaborates with established banks to manage the backend banking tasks. This arrangement allows the company to assume little to no credit risk, which is advantageous since it serves less wealthy clients. This model also enables Chime to secure higher interchange fees compared to traditional banks, which face regulatory limits. Chime's financial performance has also been on the rise. Revenue increased by over 30% in 2024 and surged by 32% in the first quarter of 2025. The company's profitability is showing signs of improvement as well. Although net losses reached $25 million last year, they decreased in comparison to 2023. Chime was even profitable in the first quarter of 2025. This change suggests that Chime's substantial investments in marketing and brand development are yielding positive results. For context, Chime allocated over $500 million for marketing efforts in 2024 alone. However, challenges remain. The neobanking landscape is becoming increasingly commoditized, with minimal differentiation among digital offerings. While Chime has built brand recognition through focused marketing and its early advantage in the market, fostering customer loyalty in banking is challenging, and maintaining it is equally difficult. Traditional banks are also progressively creating comprehensive digital platforms that bundle various financial services, thus reducing friction in banking processes. Many consumers, particularly older or more affluent individuals, will be hesitant to shift their business away from established institutions like JPMorgan Chase or Wells Fargo. In terms of valuation, Chime's current share price of about $34.50 suggests a market capitalization of roughly $12 billion, translating to a trading ratio of about 7x trailing revenues – which is not particularly cheap. However, the company's enhanced profitability and consistent growth may justify this valuation to some degree. Chime's dependence on transaction fees also presents a risk, as any economic downturn could result in reduced spending activity. Unlike traditional banks that benefit from more stable revenue streams such as deposits or wealth management fees, Chime is heavily reliant on user growth and transaction activity. Investing in a single stock like CHYM carries risks. Conversely, the Trefis High Quality (HQ) Portfolio, comprising 30 stocks, has consistently outperformed the S&P 500 by a comfortable margin over the past four years. What's the reason for that? Collectively, HQ Portfolio stocks have generated higher returns with lower risk compared to the benchmark index, offering a less volatile investment experience, as illustrated by HQ Portfolio performance metrics.
Yahoo
a day ago
- Business
- Yahoo
ANZ renews Knosys contract and seeks cloud migration
ANZ Bank has extended its contract with Knosys for the use of the KnowledgeIQ (KIQ) enterprise solution for an additional year. The extension, valued at over $1.9m, is an interim measure as the bank negotiates a new three-year agreement which is expected to include a migration to Knosys' cloud-based KIQ service. This contract renewal ensures the continued operation of Knosys' Knowledge Management system within ANZ Bank. Additionally, the companies are collaborating on the integration of an AI assistant into the bank's knowledge management portal. Previously, in 2020, ANZ Bank New Zealand entered a contract with Knosys to comply with the Reserve Bank of New Zealand's regulations. The contract entailed the migration of the bank's data to Knosys' KnowledgeIQ system. Knosys managing director John Thompson said: 'This contract extension reflects the long standing relationship we have with ANZ and our ability to assist them with their internal strategic initiatives such as their 'cloud first' approach to technology solutions. We are also excited about the prospect of assisting ANZ with AI enhancements to improve employee workflows and customer service. Last month, ANZ announced plans to introduce password-less web banking on its ANZ Plus digital platform, a first for an Australian bank. "ANZ renews Knosys contract and seeks cloud migration " was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
This Week In E-Commerce - Digital Commerce Insights Forecasting Future Market Dynamics
The latest "Digital Commerce Market: 2025-2029" report offers an exhaustive examination of the rapidly expanding digital commerce sector, providing detailed analysis and strategic recommendations for stakeholders. This comprehensive research covers pivotal segments such as Digital Banking, eCommerce, and Proximity Payments, analyzing market trends and challenges across 60 countries. It offers critical insights into key growth drivers and constraints, enabling stakeholders to refine their strategies within digital commerce. Accompanied by extensive benchmark forecasts, the report serves as a crucial resource for understanding market dynamics and preparing for future developments within this evolving industry. In other market news, was a notable mover up 15.8% and ending trading at CA$22.72, close to the 52-week high. This week, the company raised its earnings guidance for 2025, projecting higher comparable store sales growth. At the same time, trailed, down 20% to end trading at $1.00. Seize the opportunity as Amazon leverages AI to boost AWS and ads. Dive into the full narrative to explore Amazon's growth potential and strategic moves. For a deeper understanding of the e-commerce landscape, revisit our Market Insights article highlighting the pivotal role of logistics automation in driving industry growth; essential reading as the landscape rapidly evolves. ended the day at $59.51 down 0.8%. On Tuesday, Cathleen Benko informed the company of her decision to retire from the Board of Directors effective after the 2025 annual meeting. closed at $212.52 down 1.1%. This week, Amazon saw key partnerships with Tufin and CSG to enhance cloud security and transformation solutions. settled at $113.49 down 1.3%. Alibaba recently presented at MWC Shanghai 2025, two days ago, highlighting insights from Vice President Steven Hoi. Unlock our comprehensive list of 252 E-Commerce Stocks like Arvind Fashions, STO ExpressLtd and Weimob by clicking here. Interested In Other Possibilities? AI is about to change healthcare. These 22 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sources: Simply Wall St "Digital Commerce Market Report 2025: Benchmark Forecasts Highlight Market Trends Across 60 Countries" from Research and Markets on GlobeNewswire (published 17 June 2025) Companies discussed in this article include TSX:GRGD NYSE:NKE NasdaqGS:AMZN NYSE:BABA and OTCPK:MALG. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Forbes
a day ago
- Business
- Forbes
The Metaverse Was Suppose To Change How We Bank — What happened?
NANCHANG, CHINA - OCTOBER 19: A visitor experiences VR headset and hand controllers during an expo ... More of 2023 World Conference on VR Industry on October 19, 2023 in Nanchang, Jiangxi Province of China. (Photo by Zhu Haipeng/VCG via Getty Images) The metaverse was supposed to be transformative. In March 2022, Meta CEO Mark Zuckerberg called it 'the next chapter of the internet overall.' Three years ago, Satya Nadella, CEO at Microsoft, wrote on LinkedIn, 'The metaverse is here, and it's not only transforming how we see the world but how we participate in it — from the factory floor to the meeting room.' Back then, everyone was talking about it. And then, they stopped. The banking industry embraced the metaverse at the height of its hype, with some institutions even launching their own initiatives. Coastal Community Bank developed Coastal World, for example, a digital banking 3D game and marketplace, while Quontic Bank created an outpost in Decentraland. But, as it did elsewhere, the metaverse eventually lost its luster in financial services. These ecosystems still exist; they haven't been shuttered, but there haven't been any obvious updates lately. And rarely does the metaverse come up in conversations among bank executives anymore. So, what happened? Is the metaverse dead? Is there still any opportunity to be had? Overall, the technology industry took a hit in the last few years as macroeconomic conditions deteriorated and private capital contracted. This is likely at least partly to blame. But beyond that, the metaverse ran into two distinct challenges: limited utility and a lack of societal readiness. In short, there weren't any killer use cases (outside of gaming, which is quite niche) and people were not ready to, as Tesla and SpaceX CEO Elon Musk put it, strap 'a frigging screen to their face all day.' However, the metaverse opportunity may still exist — albeit in a less flashy, less monumental way. This is especially true in the context of two current 'hot' trends: artificial intelligence, including the rise of AI agents, and stablecoins. Here are a few ways that elements of the metaverse could play out as the banking industry grapples with the implications of these two technologies: Supercharged, generative AI-powered customer service is on the horizon. While the technology is not quite ready for primetime with bank customers, it's getting there. The form factor for such interactions today is a chat interface, but that may not always be the case. As agents transform into avatars, a metaverse-like environment may make more sense, especially if it takes the form of a virtual lobby or bank branch. Generative AI is already getting incorporated into learning and development initiatives at community banks. LemonadeLXP, for instance, is a learning platform that uses generative AI to help bank employees create trainings and courses. Over time, such materials could evolve into a virtual setting. According to CEO John Findlay, 'Historically, the issue with 3D experience training is cost. If AI makes 3D environments affordable, it could become an excellent tool for teaching soft skills and situation training such as customer service or sales, and leadership and conflict resolution.' Stablecoins are demonstrating potential utility in areas like online gaming, e-commerce, and cross-border payments. However, users need to be able to convert these digital assets to fiat currency and back again. Banks are well positioned to provide the on and off ramps necessary to facilitate these transactions. And that includes in virtual environments. Banks can also offer secure custody services. These are only a few examples — there are likely many more. Particularly when it comes to AI, any place where there is a chatbot today could benefit from an avatar in the future. And avatars need somewhere to live. As these virtual assistants grow more and more human-like, where they reside may grow more and more world-like. It's unlikely that the metaverse will regain its past momentum. Generally, once a buzzword dies, it stays dead. But that doesn't mean the spirit of the metaverse doesn't continue to present possibilities, for banks and for others. As society further experiments with advanced robots, digital currencies, and other new technologies, virtual ecosystems could emerge as an important mode for interaction. Most likely, though, they'll have a new name.
Yahoo
a day ago
- Business
- Yahoo
Lumin Digital, Chimney collaborate to enhance digital banking for homeowners
Lumin Digital, a cloud-native digital banking solution provider, has teamed up with Chimney to improve the digital banking experience for homeowners. This collaboration integrates Chimney's MyHomeTracker solution into Lumin's digital banking platform. Lumin Digital chief product officer Sean Weadock said: 'Integrating Chimney's MyHomeTracker solution into our digital banking platform empowers users with valuable insights about their home while also delivering personalised financial education and offers, all seamlessly within their digital banking experience.' MyHomeTracker will enable users to monitor home values, assess borrowing power, and access financial education on homeownership. Homeowners will also receive personalised loan offers directly within their banking apps. Current banking applications often lack essential homeownership information, leading to a disjointed experience for users. The integration of MyHomeTracker aims to provide a more cohesive and informative digital banking experience. Lumin Digital's platform is designed to be customisable and scalable, allowing for seamless integration with Chimney's solution. This will enable financial institutions to offer homeowners critical insights in an intuitive manner, stated Lumin. BCU, a credit union with over $6bn in assets, is the first to implement the MyHomeTracker solution. This tool will be accessible to BCU's more than 360,000 members across the United States and Puerto Rico. MyHomeTracker offers data covering 98% of residential properties in the US, providing Lumin Digital's clients with the ability to deliver a more tailored banking experience. In January this year, Lumin Digital collaborated with FINBOA to support paperless payment dispute management. "Lumin Digital, Chimney collaborate to enhance digital banking for homeowners" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
