Chime Plans $590 Million Stride Bank Acquisition
Chime Plans $590 Million Stride Bank Acquisition
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Key Points
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The $590 million purchase price represents approximately 1.5 times Stride Bank’s tangible book value. Chime said Stride is profitable and well-capitalized and that it expects to fund the acquisition with cash already on its balance sheet, without an incremental capital contribution.
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Chime said it plans to integrate ChimeCore, its AI-native proprietary technology stack, with Stride’s banking infrastructure to unify data and decision-making and speed the development of regulatory-compliant products.
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Alongside the acquisition announcement, Chime raised its third-quarter revenue outlook to $705 million, up from its previous forecast of $680 million to $690 million.
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Stride Bank, founded in 1913 and headquartered in Enid, Oklahoma, operates branches in Oklahoma and Salt Lake City, giving the transaction a physical-bank component in addition to Chime’s digital platform.
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Chime CEO and co-founder Chris Britt said the company’s member-aligned, technology-driven strategy would remain unchanged, describing the combination of Chime’s brand and member relationships with Stride’s charter and team as a way to accelerate its goal of becoming the largest provider of primary bank accounts in the United States.
Fintech giant Chime agreed to buy Stride Bank's parent company for $590 million in cash, bringing its banking partner in-house for the first time. PYMNTS The deal would transform Stride into Chime Bank, N.A., and let Chime control its own banking infrastructure rather than paying fees to a partner. The acquisition is expected to close in the first half of 2027 and would unlock over $100 million in annual savings.
Chime raised its 2026 revenue forecast to $2.76 billion–$2.77 billion following the announcement. American Banker The company expects the deal to immediately boost earnings, though some investors worry about the cash outlay, integration risks, and Chime's path to consistent profitability. TipRanks Chime also bumped its third-quarter revenue outlook to $705 million, up from $680–$690 million.
Why Chime Is Buying Its Bank Partner
Chime has relied on Stride Bank as its banking partner since launching. PYMNTS Now the company wants to own that infrastructure outright. Chime CEO Chris Britt said the acquisition aligns with the company's goal to become the largest primary bank account provider in America. The deal lets Chime ditch partner-bank fees, shrink funding costs, and launch new products faster across all 50 states.
Stride Bank Brings Physical Locations and History
Stride Bank was founded in 1913 and is based in Enid, Oklahoma. KSL The bank operates branches in Oklahoma and Salt Lake City, giving Chime a rare physical footprint to match its digital platform. American Banker Stride is profitable and well-capitalized, with a purchase price of roughly 1.5 times its tangible book value. Chime plans to fund the deal with cash already on its balance sheet.
How Chime Plans to Merge Technology and Banking
Chime will blend ChimeCore, its AI-powered technology platform, with Stride's banking systems. PYMNTS The goal is to unify data and decision-making across the combined bank. This integration should speed up the creation of regulatory-compliant products and strengthen Chime's competitive edge. The move represents a major shift from Chime's model of paying other banks to handle its accounts.
Investors Question Timing and Profitability Path
Some investors worry about the $590 million cash spend, potential integration headaches, and regulatory risks. TipRanks The deal doesn't close until mid-2027, leaving time for market conditions to shift. Chime remains unprofitable as a whole, even as it grows its member base rapidly. American Banker The acquisition is subject to approval from the Office of the Comptroller of the Currency and other regulators, adding another layer of uncertainty.
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