Chime Makes $590M Bet on Stride Bank Acquisition

Chime Financial (CHYM) is buying its longtime banking partner Stride Bank for $590 million in cash. The deal gives Chime a national bank charter and greater control over its banking infrastructure, paving the way for the fintech company to expand into products and services long dominated by traditional lenders.

The acquisition, which is expected to close in the first half of 2027 pending regulatory approval, has sparked a wave of price target hikes from analysts. Barclays, Loop Capital, KeyBanc, and UBS have all raised their targets, with some analysts describing the deal as 'strategically compelling'.

Chime CEO Chris Britt said the acquisition builds on the company's founding mission to provide better banking services to mainstream America. The company has emerged as a major challenger to traditional banking heavyweights over the past few years, chipping away at their market share with app-based, low-cost financial services.