Chime to Acquire Stride Bank for $590 Million to Secure National Charter
The fintech leader will end its reliance on the sponsor bank model by purchasing its longtime partner to internalize banking operations.
Fintech leader Chime has signed a definitive agreement to acquire its longtime partner, Stride Bank, for $590 million in cash. The move marks a pivotal transition for the company as it seeks to internalize its banking operations and secure a national charter.
Under the terms of the deal, the Oklahoma-headquartered Stride Bank will become a wholly owned subsidiary of Chime and be renamed Chime Bank, N.A. The transaction is expected to close in the first half of 2027, pending necessary regulatory approvals. The two organizations have maintained a strategic partnership for more than seven years, with Chime relying on Stride's infrastructure to deliver its consumer financial products.
The Shift from Sponsor Banking
For much of its growth, Chime has operated under a "sponsor model," a common industry practice where fintechs partner with chartered banks to offer regulated services without holding their own banking license. By acquiring the charter directly, Chime is effectively ending its reliance on third-party intermediaries for its core banking functions.
Strategic Implications
This acquisition signals a broader trend toward vertical integration within the fintech sector. By owning its own charter, Chime eliminates the fees typically paid to partner banks and reduces its overall funding costs. More importantly, the move grants Chime direct control over regulatory compliance and the speed of its product development.
This structural shift provides a significant cost advantage and increases operational resilience, allowing the company to compete more aggressively as a primary bank account provider in the U.S. market. The transition allows Chime to move from a service-layer provider to a fully integrated financial institution, removing the friction inherent in the partner-bank relationship.
"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 Chime CEO and Co-Founder Chris Britt.
Future Outlook
As the deal moves toward its 2027 closing date, the focus will shift to the integration of Stride's experienced 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.
Industry observers will be watching to see if this move prompts other major fintechs to pursue similar acquisitions to escape the constraints of the sponsor model. If successful, Chime's blueprint could trigger a wave of consolidation as fintechs seek the stability and autonomy of a national charter to scale their operations and lower their cost of capital.