SAN FRANCISCO — Chime has agreed to acquire longtime banking partner Stride Bank for $590 million in cash, a deal that would give the financial technology company its own nationally chartered bank and reduce its reliance on outside banking partners.
Under the definitive agreement announced by Chime, Stride Bank, N.A., would become Chime Bank, N.A., and operate as a wholly owned subsidiary of Chime following completion of the transaction.
The acquisition is expected to close in the first half of 2027, subject to approval by the Office of the Comptroller of the Currency and Federal Reserve and other customary closing conditions, according to Chime. The boards of both companies unanimously approved the transaction.
Seven-Year Partner
Stride, headquartered in Enid, Okla., has been a Chime banking partner for more than seven years.
Chime said acquiring the bank provides a faster path to owning its banking infrastructure than seeking a new bank charter and is expected to generate more than $100 million in net synergies.
“We founded Chime because mainstream America deserved better banking,” Chime CEO and co-founder Chris Britt said in the press release. “Our member-aligned, technology-driven strategy will remain the same. This acquisition will make our proven model even stronger.”
Britt said combining Chime’s brand and customer relationships with Stride’s national charter and banking operations will help the company pursue its goal of becoming the country’s largest provider of primary bank accounts.
Chime to Eliminate Partner-Bank Fees
Chime said owning Stride is expected to produce several financial and operational benefits, including eliminating sponsor-bank fees, lowering funding costs and allowing it to expand lending products.
The company expects more than $100 million in net synergies from the transaction and said the acquisition should immediately add to earnings per share after closing.
The $590 million purchase price represents approximately 1.5 times Stride’s tangible book value, according to Chime.
Chime said it expects to finance the all-cash transaction from cash already on its balance sheet and does not anticipate making an additional capital contribution.
Following the acquisition, Chime plans to consolidate its banking activities at Stride, which would focus primarily on supporting Chime’s consumer business.
Chime said it intends to keep the bank’s assets below $10 billion for the foreseeable future.
National Charter Would Change Chime’s Structure
Chime is a fintech company rather than a bank and currently offers banking products through partner financial institutions, including Stride and The Bancorp Bank.
Acquiring Stride would significantly change that arrangement by putting a national bank directly under Chime’s ownership.
Chime said the structure would give it greater control over product development, regulatory compliance, funding and banking operations while allowing it to continue operating a payments-led, asset-light business model.
The company also said integrating its proprietary ChimeCore technology with Stride’s banking infrastructure would help it use artificial intelligence to speed product development and reduce operational handoffs.
Chime said owning the bank also would allow it to serve consumers nationwide while strengthening the reliability and resilience of its platform.
Stride Has Been Partner Since 2019
Stride was founded in 1913 and has operations serving consumers, businesses and fintech companies.
Chime said accounts associated with its customers already represent a significant portion of Stride’s deposits, which should help reduce integration challenges.
Stride Chairman and CEO Brud Baker is expected to continue leading the bank after it becomes Chime Bank.
“For seven years, we have seen firsthand how Chime puts members first and how seriously it takes its mission,” Baker said in the release. “That gives us real confidence in this combination and the future we can build together.”
Baker said Stride’s national charter and existing banking, risk and compliance operations would play a central role in the combined company.
Chime said it has more than 10 million active customers.
