Chime Buys a Bank | The Public Ledger

Hello, Fintech Friends!

After suggesting at an investor conference in May that becoming its own bank was a matter of when, not if, yesterday, after the market close, Chime announced it has agreed to acquire long-time banking partner Stride Bank for nearly $600 million, jumping directly to the front of the line and bypassing a potentially lengthier process of obtaining a de novo charter.

Chime joins a growing list of fintechs that are in the process of securing either an industrial loan company (ILC) or national bank charter, including Affirm, Klarna, PayPal, and Revolut, which received conditional approval from the OCC last week. Block’s* Square obtained an ILC charter in 2020, and SoFi acquired Golden Pacific Bank during 2022. Most analysts attribute the recent wave of fintech banking applications to a friendlier regulatory environment ushered in by the current administration, which promises, and has generally delivered, a streamlined approval process.

Chime sees several potential benefits resulting from a transaction, both strategic and economic. From a strategic standpoint, the unification of Chime’s proprietary technology stack, ChimeCore, with Stride’s banking infrastructure will deliver an end-to-end platform with artificial intelligence as the key enabler for even faster product development and enhanced underwriting capabilities as Chime’s business model tilts increasingly toward lending. Additionally, owning its own bank will allow Chime to reduce third-party fees, serve members in all 50 states, lower its funding costs for loans, and improve unit economics, such as capturing the entirety of interchange generated by spending on its debit and secured credit products. In total, Chime expects to net $100 million in savings and synergies from the deal making it immediately accretive to earnings.

Of course, once upon a time, being a bank was considered unattractive given the capital constraints and regulatory burden. While that view has ebbed of late, there is certainly the potential for this thinking to reemerge as political winds shift.

In the here and now, though, Chime’s business momentum remains strong, highlighted by the increase in 2026 guidance that accompanied the Stride Bank acquisition announcement. Chime now expects revenue to grow 30% during Q3 to $705 million, better than the previous $685 million midpoint. Q3 adjusted EBITDA is now expected at $118.5 million, up $11 million from the previous midpoint. Given we are only about one week into September, and Chime’s history of upside surprises, the possibility exists for even stronger performance to close out the quarter and year. Let the good times roll!

* As of September 9, 2026, I am long Block

Bob Hammel

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