Chime Financial has entered into a definitive agreement to acquire its long-time partner, Stride Bank, N.A. for $590 million in cash.
Financial technology firm Chime has agreed to acquire Oklahoma-based Stride Bank for $590 million in cash, securing direct control over full banking operations rather than relying on third-party institutions.
Under the terms of the transaction, Stride Bank will become a wholly owned subsidiary operating as Chime Bank, N.A. The deal is expected to close in the first half of 2027, subject to regulatory approvals.
For over seven years, Stride Bank operated as a key financial partner behind Chime, holding customer deposits and issuing debit cards.
Historically, technology platforms like Chime were required to partner with traditional banks to offer official account services.
By purchasing Stride, Chime gains a direct national bank charter. Company executives noted that acquiring an established banking partner offers a faster, clearer path to direct operational control compared to applying for a completely new banking license.
The all-cash transaction is projected to generate over $100 million in net cost savings for the combined company. Managing its own banking infrastructure allows Chime to eliminate external sponsor bank fees, lower its overall funding costs and expand its direct consumer lending products.
The company plans to maintain Chime Bank’s assets below $10 billion for the foreseeable future. Staying under this threshold preserves higher fee revenues from debit card transactions allowed under existing federal regulations.
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Additionally, Brud Baker Chairman and Chief Executive Officer of Stride will remain in place to lead Chime Bank post-acquisition.
Following the transaction announcement, Chime raised its full-year revenue guidance to between $2.76 billion and $2.77 billion, representing an expected annual growth rate of up to 27 percent.
Following the report, Chime’s stock rose in extended trading. Market analysts view the move as a major structural shift for digital platforms moving from simple technology interfaces to integrated financial institutions with direct control over their balance sheets.
