Chime to buy Stride Bank in $590m deal 

Fintech firm Chime has signed a deal to acquire compatriot Stride Bank for $590m in cash. 

Completion of the deal is targeted for the first half of 2027. 

Stride, a nationally chartered bank, has worked with Chime as a banking partner for more than seven years.  

After the deal closes, Stride will become a wholly owned subsidiary of Chime and be renamed as Chime Bank. 

Chime, which serves more than 10 million active members through its payments-focused digital model, called the purchase an “important milestone” in its development. 

The group said bringing together its digital platform and customer account relationships with Stride’s national charter and banking infrastructure would create a single platform designed for the AI era.  

It added that combining ChimeCore, its proprietary technology stack, with Stride’s systems would bring together data and decision-making processes while cutting operational handovers. 

Stride Bank CEO and chairman Brud Baker said: “Stride has spent more than a century serving customers and strengthening communities. For seven years, we have seen firsthand how Chime puts members first and how seriously it takes its mission. That gives us real confidence in this combination and the future we can build together. Stride’s national bank charter and experienced team will be central to what comes next.” 

According to Chime, AI has increased the speed of product development, and ownership of a subsidiary bank charter would support the creation of regulatory compliant products through a more direct structure. 

It said a direct relationship between Chime and the bank holding member accounts could increase consumer confidence in using Chime as a primary account. 

Chime also noted that owning the bank would remove partner-bank fees, lower funding costs and improve unit economics.  

It added that the combined business would be able to serve consumers in all 50 states and widen its addressable market. 

Chime expects the deal to add to its earnings per share as soon as it closes, with additional upside over time.  

For the full year, the company now expects revenue of $2.76bn to $2.77bn, which would represent annual growth of about 26% to 27%. It also forecast adjusted EBITDA of $481m to $489m, equal to a margin of 17% to 18%. 

The deal is subject to approval by the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System, along with other customary closing conditions. 

Chime CEO and co-founder Chris Britt said: “Our member-aligned, technology-driven strategy will remain the same. This acquisition will make our proven model even stronger. By combining Chime’s leading brand and deep member relationships with Stride’s national charter and team, we will accelerate toward our vision to be the largest provider of primary bank accounts in America.” 

Last year, Chime listed its Class A common stock on the Nasdaq stock exchange under the ticker symbol “CHYM”.