Chime has finalised the acquisition of the nationally chartered Stride Bank for USD 590 million, bringing the latter’s key banking infrastructure to the American Fintech major’s operational setup, as the venture eyes expanding its lending business.
Chime’s shares, which are up over 28% this year, jumped nearly 10% in extended trading after the acquisition news arrived.
The all-cash deal is expected to help Chime realize more than USD 100 million in net synergies and close in the first half of 2027.
“Upon closing, Stride will become Chime Bank, N.A. and operate as a wholly owned subsidiary of Chime,” the duo announced.
Chime termed the deal as an important milestone in the company’s evolution from a finance industry challenger to a category leader.
“Chime’s technology-driven, payments-led model has reshaped the industry and now helps well over 10 million active members in making financial progress. The integration of Chime’s digital core, trusted brand, and primary account relationships with Stride’s national charter and bank infrastructure will establish a comprehensive platform designed for the AI era. This will strengthen key competitive advantages that have driven Chime’s industry-leading growth,” the business noted.
Chime will be integrating “ChimeCore”, the company’s AI-native, proprietary technology stack, with Stride’s banking infrastructure, which will help the fintech in unifying data, decisioning, and reducing handoffs.
“AI is allowing Chime to build faster than ever, and a subsidiary bank charter will allow for even more streamlined development of regulatory-compliant products,” Chime said.
“Combining Chime’s modern technology with Stride’s scaled banking foundation will make the platform even more reliable and resilient. A direct connection between Chime and the bank behind member accounts will also deepen trust and give more consumers the confidence to make Chime their primary account,” Stride remarked.
As per Chime’s estimates, owning the Stride Bank will eliminate partner-bank fees, reduce funding costs, and improve unit economics.
The combined entity will be able to serve consumers across all 50 states and expand the addressable market.
“We founded Chime because mainstream America deserved better banking. 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 profound 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,” said Chris Britt, CEO and co-founder of Chime.