US-based Stride Bank has extended its private-label banking services partnership with financial technology company Chime Financial.
Under the renewed collaboration, Stride, an FDIC-member bank, will continue to hold bank and savings accounts for Chime members, in addition to issuing secured credit cards and debit cards.
The agreement allows Chime to offer clients products that are fully regulated and come with the same consumer safeguards as those offered to customers of traditional banks, such as FDIC insurance.
Stride Bank president of payments Jimmy Stallings said: “Consumers should not have to choose between innovation and consumer protection. We are proud to partner with Chime as they continue to create easy-to-use banking products that are loved by millions of Americans.
“Banking customers waited a long time for a company like Chime to come in and disrupt a fee-happy industry. Stride looks forward to continuing to serve the needs of Chime members while also working together to bring the next generation of financial solutions to life.”
Chime was created in 2012 by former Visa executive Chris Britt and Comcast Corp veteran Ryan King.
In August 2021, Chime raise $750m in its Series G funding round at a whopping valuation of $25bn.
Sequoia Capital Global Equities led the round with participation from SoftBank Group Corp’s Vision Fund 2, General Atlantic, Tiger Global, and Dragoneer Investment Group.
In November last year, the fintech reportedly laid off nearly 12% of its workforce citing “current market dynamics”.