Chime to Acquire Stride Bank for $590 Million to Secure National Charter

Fintech leader Chime has signed a definitive agreement to acquire Stride Bank for $590 million in cash. The move marks a fundamental shift in the company's operational model, transitioning from a partner-reliant fintech to a vertically integrated financial institution.

Under the terms of the deal, Stride Bank will become a wholly owned subsidiary of Chime and will be rebranded as Chime Bank, N.A. The acquisition is expected to close in the first half of 2027, pending necessary regulatory approvals. Stride Bank has served as a strategic partner to Chime for more than seven years, providing the essential regulatory infrastructure required for the fintech's operations. Following the announcement, Chime shares jumped approximately 10% in after-hours trading.

The Shift to Vertical Integration

Historically, Chime has operated without its own banking license, relying on a network of sponsor banks—including Stride Bank and The Bancorp Bank—to provide FDIC-insured accounts. This partnership model is common among fintechs, allowing them to offer banking services without the heavy regulatory burden of maintaining a charter. By acquiring Stride, Chime brings that national bank charter in-house, effectively removing the middleman from its core financial architecture.

Economic and Operational Impact

This strategic pivot is designed to improve Chime's unit economics. By owning the charter, the company eliminates fees typically paid to partner banks and reduces overall funding costs. Beyond the balance sheet, the move allows Chime to accelerate the development of regulatory-compliant products and potentially increase member trust by operating as a formal bank.

"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," said Chris Britt, CEO and Co-Founder of Chime.

The Path Forward

As the company prepares for the 2027 closing, the focus will shift toward integrating Stride's experienced banking team into the Chime ecosystem. Brud Baker, Chairman and CEO of Stride Bank, noted that the national charter and the existing team will be central to the company's next phase of growth.

While the financial terms are set, the timeline remains subject to the scrutiny of federal regulators. The industry will be watching closely to see if this acquisition triggers a broader trend of major fintechs abandoning the sponsor-bank model in favor of full ownership, a move that would fundamentally alter the competitive landscape of American digital banking.