Chime signed a definitive agreement to acquire Stride for $590 million in cash, and the company expects the transaction to close in the first half of 2027, subject to regulatory approvals and other customary closing conditions, according to the release.
Upon closing, Stride will become Chime Bank, N.A. and will operate as a wholly owned subsidiary of Chime. Stride is a nationally chartered bank and has been Chime’s bank partner for more than seven years, the release said.
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The addition of Stride’s national charter and bank infrastructure to Chime’s digital core, brand and primary account relationships will enable faster development of regulatory compliant products, increased resilience and member trust that will encourage more consumers to make Chime their primary account, and an even stronger structural cost advantage enabled by the elimination of partner-bank fees, the reduction of funding cost and the improvement of unit economics, per the release.
“This acquisition will make our proven model even stronger,” Chime CEO and Co-Founder Chris Britt said in the release. “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.”
Stride Bank Chairman and CEO Brud Baker said in the release that during the seven years of the companies’ partnership, Stride has seen that Chime puts members first.
“That gives us real confidence in this combination and the future we can build together,” Baker said. “Stride’s national bank charter and experienced team will be central to what comes next. I look forward to continuing to lead Chime Bank, creating new opportunities for our customers, communities and employees.”
When Stride Bank announced in January 2023 that it had extended its private-label banking services partnership with Chime, the bank said the partnership enables the FinTech company to offer fully regulated products and allows consumers to get both innovation and consumer protection.
Britt said during an Aug. 5 earnings call that Chime has been demonstrating “success in developing primary account relationships.”
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