Chime signs $590m deal to acquire Stride Bank and gain national charter
The fintech sector's long-running calculus on charter ownership versus partner-bank reliance has a new reference point. Chime, listed on Nasdaq under the ticker CHYM, has agreed to acquire Stride Bank for $590 million in cash,…
Key takeaways
- Chime has agreed to acquire its longtime partner Stride Bank for $590 million in cash and plans to rename it Chime Bank.
- The acquisition converts a seven-year banking partnership into a wholly owned, nationally chartered subsidiary serving Chime's more than 10 million active accounts.
- Chime says the deal will remove partner-bank fees, lower funding costs, and be accretive to earnings per share as soon as it closes.
- The deal targets completion in the first half of 2027, pending approval from the OCC and the Federal Reserve Board of Governors.
- Chime issued full-year guidance of $2.76–$2.77 billion in revenue (roughly 26%–27% growth) and adjusted EBITDA of $481–$489 million.
The fintech sector's long-running calculus on charter ownership versus partner-bank reliance has a new reference point. Chime, listed on Nasdaq under the ticker CHYM, has agreed to acquire Stride Bank for $590 million in cash, converting a seven-year banking partnership into a wholly owned subsidiary it plans to rename Chime Bank.
Charter economics and funding costs
The funding logic runs through the deal's core. Chime said the acquisition would remove partner-bank fees, lower its funding costs, and improve unit economics across a member base of more than 10 million active accounts. The company expects the deal to be accretive to earnings per share as soon as it closes and to generate additional upside over time.
The technology argument sits alongside the financial one. Chime said AI has accelerated its product development pace, and that owning a nationally chartered subsidiary would allow it to bring regulatory-compliant products to market through a more direct structure, removing the operational handovers that come with a partner-bank model. The combined business, built on Chime's proprietary ChimeCore technology stack integrated with Stride's systems, would be positioned to serve consumers in all 50 states.
Regulatory timeline and full-year guidance
Completion is targeted for the first half of 2027, subject to approval from the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System, along with customary closing conditions.
Alongside the deal, Chime issued full-year guidance. The company expects revenue of $2.76 billion to $2.77 billion, representing annual growth of approximately 26% to 27%. Adjusted EBITDA is forecast at $481 million to $489 million, implying a margin of 17% to 18%.
Stride Bank CEO Brud Baker, whose institution carries more than a century of operating history, said the seven-year working relationship had given him real confidence in the combination. Chime CEO and co-founder Chris Britt described the acquisition as an acceleration toward the company's stated goal of becoming the largest provider of primary bank accounts in the United States.
On balance, the regulatory clock is the live macro caveat. An approval process spanning both the OCC and the Federal Reserve carries timeline risk, and the H1 2027 target stands on that process proceeding on schedule.
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