San Francisco-based fintech Chime announced on Tuesday its intention to acquire nationally chartered Stride Bank for $590 million in an all-cash deal. This strategic move is set to bring crucial banking infrastructure in-house, enabling Chime to significantly expand its lending business. Chime targets everyday Americans with banking products, having successfully grown its user base by attracting younger customers through its mobile-first offerings. Following the announcement, Chime’s shares, which had already seen an increase of over 28% this year, jumped nearly 10% in extended trading, reflecting investor confidence.
The acquisition is expected to generate more than $100 million in net synergies and is projected to finalise in the first half of 2027. Enid, Oklahoma-based Stride Bank, established in 1913, provides a range of financial services, including consumer and commercial banking, and has been a valued partner to Chime for over seven years. Chime underscored that the acquisition of Stride Bank provides “a faster and more proven path to full-stack ownership versus pursuing a de novo bank charter.” Post-closing, Chime will assume management of Stride’s balance sheet, with a commitment to keep its assets below $10 billion for the foreseeable future.
Further reinforcing a positive outlook, Chime also elevated its full-year revenue forecast. The company now anticipates growth of between 26% and 27%, an increase from its previous expectation of 25% to 26%. Morgan Stanley is providing financial advisory services to Chime regarding the transaction, while Piper Sandler & Co is advising Stride Bank.
