Sept 8 : Fintech Chime said on Tuesday it will acquire nationally chartered Stride Bank for $590 million, bringing key banking infrastructure in-house as it looks to expand its lending business.Here are some details:• Chime's shares, which are up over 28 per cent this year, jumped nearly 10 per cent in extended trading.• The all-cash deal is expected to help Chime realize more than $100 million in net synergies and close in the first half of 2027.
• Enid, Oklahoma-based Stride was founded in 1913 and provides financial services including consumer and commercial banking. The bank has been a partner to Chime for over seven years.• "The acquisition of Stride Bank provides Chime with a faster and more proven path to full-stack ownership versus pursuing a de novo bank charter," Chime said in a statement.• Chime will manage Stride's balance sheet upon closing and keep its assets below $10 billion for the foreseeable future.• San Francisco-based Chime targets everyday Americans with banking products and has managed to grow its user base by attracting younger customers through its mobile-first products• Chime also raised its full-year revenue forecast and now expects between 26 per cent and 27 per cent growth, from its prior expectation of 25 per cent to 26 per cent.• Morgan Stanley is serving as a financial advisor to Chime, while Piper Sandler & Co is advising Stride.
