NEWS
NEWS
SpotMe , Chime ’ s fee-free overdraft , surpasses US $ 30 billion in spotted transactions
Leading consumer financial technology company , Chime , has announced that its fee-free overdraft feature , SpotMe , has covered its members with more than US $ 30 billion in transactions since the product launched in 2019 . SpotMe empowers everyday people to unlock financial progress by providing a safety net when they need it most .
Traditional banks typically charge US $ 35 for an overdraft fee , even though the majority of consumers ’ debit card overdrafts are for less than US $ 26 . Chime was one of the first full-feature accounts to disrupt the traditional banking industry by offering fee-free overdrafts with the launch of SpotMe . The feature provides an opportunity to meet short-term liquidity needs and allows eligible members to overdraw their account by up to US $ 200 without incurring a fee . consumers . In contrast , Chime ’ s SpotMe feature has allowed millions of eligible users to bypass these fees entirely .
“ We ’ re happy to announce this important milestone ,” said Chris Britt , Chime CEO and Co-founder . “ SpotMe has changed the lives of millions of Americans who need greater flexibility and access to liquidity . Its widespread impact has been felt beyond our members , and we ’ re pleased to see others in the industry follow our lead .”
Since launching SpotMe , US banks have moved away from their overreliance on overdraft revenue , by lowering fees or eliminating them altogether . However , despite a more than 50 % decrease in nationwide overdraft revenues compared to pre-pandemic levels , US banks still collected more than US $ 5.8bn in overdraft and non-sufficient funds fees in 2023 . While this indicates some progress , overdraft fees remain a significant burden for many
“ It simply isn ’ t good enough ” – Revolut calls for Meta to commit to sharing reimbursement of fraud victims
Revolut , the global FinTech with over 45 million global customers , is calling on Meta to commit to sharing reimbursement of fraud victims , arguing that its recently announced data-sharing partnership with UK banks and financial institutions falls woefully short of what ’ s required to tackle fraud globally .
Revolut recently released the second instalment of its Consumer Security and Financial Crime Report , disclosing exclusive scam and fraud insights from the first half of 2024 . It showed that Meta platforms remain the main source of all scams reported to Revolut in H1 2024 ( 62 %), with no significant change compared with H2 2023 ( 64 %).
Following the announcement that Meta is to launch a data-sharing partnership with UK banks and financial institutions to prevent fraud , Revolut is deeply concerned that the initiative does not address what ’ s required to tackle fraud :
• The emphasis is once again being placed on financial institutions to supply data on scams seen on Meta platforms , rather than Meta investing more to monitor their own sites .
• This initiative is only focused on the UK , when fraud is a global issue impacting consumers and businesses across many countries .
• Still no commitment to share in the reimbursement of victims defrauded on Meta platforms , despite the company potentially profiting from fake and fraudulent adverts .
Revolut ’ s Head of Financial Crime , Woody Malouf , said : “ These plans are baby steps , when what the industry really needs is giant leaps forward . What our latest report on financial crime shows is that social media platforms not only continue to enable fraud , but that the issue is just as bad today as it was last year . Victims and financial institutions still ultimately bear the cost . These platforms share no responsibility in reimbursing victims , and so they have no incentive to do anything about it . A commitment to data sharing , albeit needed , simply isn ’ t good enough .
“ We are confident in the steps the UK government is taking to tackle fraud , but what is urgently needed now is for Meta and other social media companies to commit to supporting victims of fraud in the same way financial institutions do . Their silence on this issue says it all . www . intelligentfin . tech
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