By Manya Saini
Feb 25 (Reuters) – Financial technology firm Chime forecast 2026 revenue above Wall Street estimates on Wednesday, helped by strong demand for its digital banking products and resilient consumer spending.
The entry of new-age fintechs offering digital services, easy-to-use platforms and lower fees has reshaped the banking industry, intensifying competition for legacy lenders.
Chime’s shares surged 9.4% in extended trading after the results, as the company said it expects to achieve profitability in 2026.
The fintechs, including Chime, have chipped away at the market share of Wall Street heavyweights by targeting younger and underserved customers, driving strong adoption and payments flows.
Chime expects full-year revenue between $2.63 billion and $2.67 billion, above expectations of $2.61 billion, according to estimates compiled by LSEG.
“We’re in the business of acquiring primary account relationships. Those exist at the incumbent banks, Chase, BofA and Wells and so that is our primary competition,” Chief Financial Officer Matt Newcomb told Reuters in an interview.
“We continue to extend our lead over traditional banks.”
Chime said AI has helped it cut its cost to serve by nearly 30% and increase average revenue per active member by 23% over the past three years. Investors have been closely watching for AI-driven efficiencies across industries as the technology matures.
It expects current-quarter revenue between $627 million and $637 million, above expectations of $624.8 million.
The results reflect a resilient U.S. consumer spending environment, with Americans continuing to spend on everyday essentials, supporting the payments sector.
Purchase volume, including outbound instant transfer, increased 16% to $35.3 billion in the quarter, while active members grew 19% to 9.5 million.
“We’re seeing very consistent trends in the consumer, and that’s true across income levels,” Newcomb said.
Chime’s banking model targets everyday Americans, offering several products for customers with limited credit histories who rely more on debit than credit, but is expanding to a broader product set in 2026 including membership tiers and investing.
It posted revenue of $596 million for the three months ended December 31, beating estimates of $577.7 million.
(Reporting by Manya Saini in Bengaluru; Editing by Shinjini Ganguli and Maju Samuel)
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