Chime Inks $590 Million Deal to Buy Longtime Bank Partner Stride

Chime has finalized a definitive agreement to acquire Stride Bank, its longtime bank partner, for $590 million in cash, according to a press release dated September 8, 2023. The acquisition aims to expand Chime's efforts to provide better banking solutions to "mainstream America."

Upon completion, Stride Bank will become Chime Bank, N.A., operating as a wholly-owned subsidiary of Chime. The transaction is expected to close in the first half of 2027, subject to regulatory approvals and customary closing conditions.

Stride Bank, a nationally chartered bank and Chime's bank partner for over seven years, brings valuable assets to the deal. The addition of Stride's national charter and bank infrastructure to Chime's digital core, brand, and primary account relationships is expected to accelerate product development, increase resilience and member trust, and create a stronger structural cost advantage.

Chime CEO and Co-Founder Chris Britt expressed enthusiasm about the acquisition, stating that it will strengthen their proven model and help Chime become the largest provider of primary bank accounts in America. Stride Bank Chairman and CEO Brud Baker also praised Chime's commitment to putting members first, emphasizing the confidence in the combination and the future they can build together.

During the seven years of their partnership, Stride Bank has supported Chime in offering fully regulated products, enabling consumers to benefit from innovation and consumer protection. Chime's success in developing primary account relationships was highlighted by Britt during an August 5 earnings call.