EL7.AI
Mergers & AcquisitionsMediumUpdated•Originally published 8 September 2026•Updated 8 September 2026•
2 min read

Chime Agrees to Buy Stride Bank for $590 Million to Accelerate Lending Expansion

Key Facts

1The $590 million all-cash deal is structured as a purchase of Stride Bank's parent.
2Chime expects more than $100 million in net synergies, and the price is about 1.5 times Stride's tangible book value.
3Chime plans to keep the bank's assets below $10 billion for the foreseeable future.
4Closing is expected in the first half of 2027, subject to regulatory approvals and other conditions.

Chime has entered a definitive agreement to acquire Central Service Corporation, the parent of Stride Bank, for $590 million in cash. The transaction is intended to bring a key part of Chime's banking infrastructure in-house and support its lending expansion. At closing, the bank would become a wholly owned subsidiary named Chime Bank, N.A.

Stride Bank is nationally chartered and has served as a Chime bank partner for more than 7 years. Chime, which trades on Nasdaq under CHYM, is a financial-technology company rather than a bank before the deal closes; its banking services are currently provided through partner banks, including Stride.

Chime expects more than $100 million in net synergies from lower sponsor-bank fees, expanded lending products and a lower cost of funds. The purchase price is about 1.5 times Stride's tangible book value, and Chime plans to fund the deal with balance-sheet cash without an expected incremental capital contribution.

Economically, Chime is betting that bank ownership will provide more speed and control than its partnership model while reducing handoffs between its technology platform and regulated banking infrastructure. The cost savings and faster credit-product launches remain management expectations that depend on closing, integration and execution.

The transaction would make Chime a bank holding company. Chime plans to consolidate its banking activities at Stride and keep the bank's assets below $10 billion for the foreseeable future, placing its expansion within a directly supervised banking structure rather than solely within a technology platform.

The companies expect the deal to close in the first half of 2027 after approvals from the Office of the Comptroller of the Currency and the Federal Reserve Board, plus other customary closing conditions. Both boards approved the transaction unanimously, but ownership and the projected benefits will not take effect until regulatory review and closing are complete.