Chime to Acquire Partner Stride Bank for $590 Million in All-Cash Deal

Fintech company Chime announced Tuesday it will acquire Stride Bank, a nationally chartered bank, for $590 million in an all-cash transaction. The deal represents a significant strategic shift for Chime, allowing it to bring core banking infrastructure in-house and accelerate its expansion into lending.

Strategic Rationale

By acquiring its partner of over seven years, Chime gains a national bank charter, a crucial regulatory step for offering a wider range of financial products. In a statement, Chime said the acquisition provides a "faster and more proven path to full-stack ownership versus pursuing a de novo bank charter."

The company projects the deal will generate over $100 million in net synergies. The acquisition is expected to close in the first half of 2027. San Francisco-based Chime, known for its mobile-first banking products popular with younger consumers, will manage Stride's balance sheet upon closing and plans to keep its assets below $10 billion for the foreseeable future.

Market Reaction and Outlook

Investors reacted positively to the news, with Chime's shares jumping nearly 10% in extended trading on Tuesday. The stock has performed strongly this year, up over 28% year-to-date, according to Reuters.

Ad

Alongside the acquisition announcement, Chime also raised its full-year revenue forecast. The company now expects revenue growth between 26% and 27%, an increase from its prior guidance of 25% to 26%. Morgan Stanley is serving as the financial advisor to Chime, while Piper Sandler & Co is advising Stride Bank.

Context of the Partnership

Stride Bank, based in Enid, Oklahoma, was founded in 1913 and has been a key banking-as-a-service (BaaS) partner for Chime. This partnership allowed Chime to offer FDIC-insured accounts and other banking services without holding a charter itself.

The acquisition marks a pivotal evolution in the relationship between fintechs and their traditional banking partners, with Chime opting for vertical integration rather than continuing to rely on a third-party for its core banking functions.