Chime shares rose 7% in morning trading on Wednesday after the fintech company agreed to acquire Stride Bank for $590 million, a deal that would give it a nationally chartered bank and greater scope to expand its lending operations.
The transaction, announced late Tuesday, marks a significant step in Chime’s effort to compete more directly with traditional banks. Over the past several years, the app-based financial services company has built a growing customer base by offering low-cost banking products and challenging established lenders.
The acquisition of Stride would give Chime greater control over its banking operations and allow it to broaden the range of financial products it offers.
Analysts largely viewed the transaction positively. Piper Sandler said the deal could strengthen Chime’s unit economics while giving the company greater control over product development.
“We see this as a bold move with the potential to accelerate Chime’s market share,” William Blair analysts said in a note.
The deal also places Chime among a growing group of fintechs, neobanks and digital-asset companies pursuing bank charters as they seek a larger role across the financial services industry.
Stride, which holds a national bank charter, has worked with Chime as a banking partner for more than seven years. Alongside announcing the acquisition, Chime raised its expectations for third-quarter and full-year revenue and adjusted EBITDA growth.
Chime said it expects to keep its assets below $10 billion for the foreseeable future. Staying below that level allows the company to remain “Durbin-exempt,” meaning it is not subject to the debit-card fee limits that apply to banks under the 2010 Durbin amendment.
Once the transaction closes, which Chime expects to happen in the first half of 2027, the company plans to consolidate its banking activities under Stride.
The announcement had a sharply negative impact on The Bancorp, another banking services partner for Chime. Its shares fell 18% following news of the transaction.
Analysts at Evercore ISI said obtaining its own bank charter could enable Chime to deepen its relationship with customers by capturing a larger share of their financial activity. The move could also expand Chime’s direct depositor base and strengthen the competitive advantages surrounding its platform.
Chime expects the acquisition to deliver more than $100 million in net synergies. The company said the savings and benefits would come from lower fees paid to sponsor banks, the expansion of lending products and a substantially lower cost of funds.
