Chime to buy Stride Bank for $590M
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Acquiring one of its long-time bank partners offers the fintech "a faster and more proven path to full-stack ownership," compared to pursuing its own charter, Chime said Tuesday. Chime CEO and co-founder Chris Britt said the acquisition will strengthen the company's model while its "member-aligned, technology-driven strategy will remain the same." Founded in 2012, Chime, which had about 10.4 million active members as of the second quarter, sees itself competing largely with incumbent banks for primary account and direct deposit relationships. "By combining Chime's leading brand and deep member relationships with Stride's national charter and team, we will accelerate toward our vision to be the largest provider of primary bank accounts in America," Britt said in the release. Stride, which has about $4 billion in assets, was founded in 1913 and has branch locations in Oklahoma and Salt Lake City. Chime accounts "are already a significant contributor to Stride's deposits," the fintech said Tuesday. "Stride has spent more than a century serving customers and strengthening communities," said Brud Baker, the lender's chairman and CEO, in the release. "For seven years, we have seen firsthand how Chime puts members first and how seriously it takes its mission. That gives us real confidence in this combination and the future we can build together. Stride's national bank charter and...
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