- Key insights: Chime with Invest America launched its financial education community event, Compound Combine, in Jersey City, New Jersey on Thursday evening with the support of the Treasury Department and New York Giants and New York Jets football players.
- What's at stake: Trump Accounts, an IRA-like savings accounts for children, are opening on July 4, and offer fintechs an opportunity to build financial relationships with customers at a young age.
- Forward look: The neobank's next combine will be in Washington D.C. on the national mall in conjunction with the 250 anniversary of the country.
JERSEY CITY, NEW JERSEY — It was a night of football, finances and a bit of controlled chaos.
Beneath the glass roof of the Harborside events space along the Hudson River in Jersey City, New Jersey, Chime, along with Invest America, launched its new financial education series.
Called Compound Combine, the event is designed to educate kids and parents about building wealth early, and promote the forthcoming July 4 launch of Trump Accounts, which was created by the Working Families Tax Cuts under the One Big Beautiful Bill Act.
Trump Accounts function as IRA-like savings accounts for children, with some distinctions. Accounts can be opened for any U.S. citizen under the age of 18 with a valid social security number. Parents, employers or other third-parties can contribute a combined $5,000 per year, with investments growing tax deferred. The U.S. government will also contribute $1,000 into accounts for children born during the current administration's tenure between January 1, 2025 and December 31, 2028.
While Chime is not directly involved with Trump Accounts, the neobank has been working closely with the U.S. Treasury Department to raise awareness and encourage enrollment of Trump Accounts. The neobank has helped 130,000 of its members sign up for Trump Accounts, and matches the government's contribution of $1,000 for its own employees that have a qualifying child and open an account.
"We think the Trump account is so perfectly designed for the core segment we serve," Chris Britt, Chime's CEO and co-founder, told American Banker. "Think about people who make $50,000 to $100,000 a year. A lot of those guys are living paycheck to paycheck. They unfortunately don't have the opportunity to participate in the American dream, which includes wealth creation through investment in the stock market."
Designed in the style of a National Football League combine, the event included drills that had a focus on financial concepts such as budgeting, saving and investing. Kids – many of which were bused in by the Boys and Girl Club, a nonprofit that provides afterschool and summer programs – took part in the drills and met one of the four NFL players that came out to support the event.
New York Giant's players Jaxson Dart and Arvell Reese, along with New York Jets players Garrett Wilson and David Bailey, were in attendance.
"The reason we are here as the Department of Treasury, is the importance of financial literacy," Pettit told crowds at the combine. "This is a priority… of the United States Treasury, [Treasury Secretary] Scott Bessent and President Trump. The decisions that you all make here in the next years to come will pay dividends to your future."
Chime also announced a partnership with the Council for Economic Education to train teachers in New Jersey on teaching grade-appropriate financial literacy. The neobanks next combine will be in Washington D.C. on the national mall in conjunction with the 250 anniversary of the country.
The rollout of Trump Accounts comes ahead of Chime's forthcoming launch of its own investment product this summer, which will include a suite of services that will let its customers invest in stocks, bonds and exchange traded funds on the New York Stock Exchange or the Nasdaq Composite. It will also incorporate Jade, the company's generative AI-powered agent, for set-it-and-forget-it robo investing.
"Investing is one of the last legs of the stool in terms of financial progress," Britt said. "For some people, [investing] is just intimidating."
For fintechs like Robinhood that are directly involved with the brokerage account openings, Trump Accounts represent an opportunity to add millions of new users and a low-yielding pool of assets at little to no customer acquisition cost, according to Keybanc analysts.
"The nature of Robinhood's role in the program and platform breadth could create unique opportunities for sticky, multiproduct customer relationships over time," Keybanc analysts said in a research note, adding that Trump Account assets could eclipse $40 billion by 2028.
The government has signaled that Trump Accounts will eventually be eligible for roll-over to other investment accounts, an opportunity Chime intends to capitalize on.
"The exact timing for that isn't clear yet, but when they do announce it, we stand at the ready," Britt said.
While Trump Accounts may promise newborns free cash, it still faces considerable adoption challenges, according to Adam Bergman, founder of IRA Financial, a self-directed retirement platform.
"The biggest risk with the Trump Account is that it's just too complicated," Bergman told American Banker. "The average American is already completely confused by how standard IRAs and Roth IRAs work. When you throw unclear language and a brand-new set of rules into the mix, people just freeze up."
The name — Trump Accounts — is also a liability for wider adoption.
"I'm a huge believer in the math here. From a pure wealth-generation standpoint, this is easily the best — and really only — true retirement plan built specifically for kids because it maximizes the absolute engine of wealth: compounding returns. I truly hope every eligible family uses it," Bergman said.
"But my biggest worry is the name itself. Because it's called the Trump Account, it's instantly politicized. If parents are worried that a future administration is going to step in and dismantle the program or change the tax rules, they won't trust it. And when people don't trust the retirement system, they don't save."
