Chime Launches Instant Loans

Chime launched Instant Loans, giving pre-approved members access to up to $500 with no credit check and clear, affordable terms. Chime’s Instant Loans have no late fees or compound interest—just a flat $5 fee per $100 borrowed, repaid in three monthly payments of $35 per $100 (a 29.76% APR). Repayments are automated and capped at 10% of monthly cash inflows to ensure affordability. Chime also reports on-time payments to credit bureaus, and members who pay on time could see their credit scores jump 10–30 points, according to a prior simulation with Experian. [Business Wire] [What are Chime Instant Loans]

For the astute fintech observer, this product launch should be no surprise. Chime’s lending ambitions have been widely known and reported on.

For example, Jason Mikula shared a few insights back in January 2023. [Fintech Business Weekly]

Exclusive Podcast

Launch Lending Products Faster
with Tim Li from LendAPI

Be sure to listen to the full episode. Here are two hot takes we found particularly interesting:

Shifting the Competitive Advantage from Tech to Customer Experience

LendAPI commoditizes technology (decision engines, underwriting, etc.), pushing fintech companies to compete primarily on product differentiation, customer experience, and marketing strategies, rather than building proprietary tech stacks.

Tim: “The competitiveness is not to prove to your VCs that you can build a decision engine. That stuff is commoditized.”

Emergence of Nontraditional Embedded Finance Providers

Timothy described a marine equipment financing company transitioning from Excel-based underwriting to LendAPI's automated system, illustrating how embedded finance is expanding rapidly outside traditional financial services. Industries previously untouched by sophisticated fintech solutions are now adopting these tools, creating entirely new market opportunities.

Tim: "The 5,000 banks, 10,000 banks, 5,000 fintech now turn into 30 million small businesses that Affirm or Snap Finance may not be able to service."

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Capital One, Discover Fall on Reports of DOJ Anti-Trust Concerns

Capital One and Discover saw shares tumble after reports that DOJ staff have "concerns" their $35 billion merger could hurt competition. The deal, which still needs green lights from the Fed and OCC, has already drawn political heat and an antitrust probe from New York. Despite the market jitters, Discover dropped 6.9%, Capital One 3.9% on the same day, analysts say the DOJ worries may be “overblown.” The companies are still pushing to close what would be one of the biggest banking tie-ups in years. [Bloomberg]

Chase and United Airlines Announce New and Enhanced Travel Benefits for United MileagePlus Cardmembers

Chase and United Airlines just dropped a major refresh to their co-branded credit cards—and with annual values now reaching up to $2,000, those “enhancements” come with a big price hike. The United Explorer Card jumps to a $150 annual fee and offers “over $800” in value, while the United Club Card climbs to $695, promising “over $2,000” in perks like club access, ride credits, Instacart, and more. The benefits roll out immediately for new and existing cardholders, with fee increases for existing members kicking in later this year. A new Ty Burrell ad campaign takes off April 1 to convince you it's all worth it. [Chase]

In a new ad campaign, Burrell leans into “relatable travel truths” to pitch perks like free checked bags, triple miles, and legroom upgrades. It’s United’s biggest ad push in years—and its first return to linear TV since 2019. [Marketing Daily]

Enhancing BNPL Transparency: Affirm Expands Credit Reporting with Experian

Affirm is stepping up credit transparency by expanding its reporting to Experian to include all pay-over-time products—including Pay in 4—starting April 1, 2025. The move marks a shift for the BNPL giant, aiming to help consumers build credit histories and support responsible lending. While the newly reported data won’t immediately affect traditional credit scores, it sets the stage for future models. Affirm says showing all loans in a consumer’s profile will “protect and empower” borrowers and plans to work with other bureaus to broaden reporting even further. [Affirm] [Experian]

Q4 2024 Consumer Lending

Consumer lending came in hot in Q4 2024, with Upstart (+68.2%) and SoFi (+66.1%) leading the charge as demand for personal loans surged. Upstart, an AI-driven lending platform, boosted loan approvals with its new Model 18, while SoFi, a digital finance platform, leaned on its Loan Platform Business to keep loans off its balance sheet. Meanwhile, Dave and MoneyLion saw big origination growth (+44.1% and +32.5%, respectively) as consumers increasingly turned to cash advances to bridge paycheck gaps. Marketplace lending (MPL) issuance volume nearly doubled YoY, closing out 2024 up 39.6% from 2023. [Cross River]

EarnIn aims to fill gap left by banks, launches Early Pay

EarnIn launched Early Pay, giving users access to their paychecks up to two days early—no bank switch required. Customers reroute their direct deposit to Evolve Bank & Trust, and EarnIn pushes funds to their existing accounts for a $2.99 fee. The product fills a gap left by banks that don’t yet offer early access and appeals to users who value convenience, like longtime EarnIn customers who prefer its seamless integration with other features. Unlike some fintech rivals, EarnIn doesn’t front the cash—it uses instant card rails to move money faster without putting up capital. [American Banker]

Launch of Experian’s Cashflow Score signals new era of open banking-powered lending

Experian launched Cashflow Score, a new open banking-powered credit scoring tool that taps into consumer-permissioned bank data to give lenders a clearer picture of financial health—think income, expenses, and cash reserves. Experian claims that the score boosts predictive performance by up to 25% over traditional scores and aims to expand credit access for thin-file and credit-invisible consumers. With a 300–850 range, Cashflow Score can be used alongside standard scores for products like credit cards, auto loans, and personal loans—all with one vendor. [Experian]

Mastercard courts community banks

Mastercard is doubling down on small banks, teaming up with ICBA Payments to extend its services to the group’s 1,400 community financial institution members. The partnership gives these banks access to modern payments tech—think contactless cards, tokenization, and fraud tools—as they look to stay competitive with big-bank rivals. Mastercard will start rolling out services to “several hundred” banks, aiming to modernize infrastructure for the 10 million cards these members have in circulation. It’s an expansion of an existing relationship, now with Mastercard handling the marketing and comms. [Payments Dive] [Mastercard]

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