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US fintech company Chime announced that it will acquire Central Service Corporation, the parent company of its long-term partner Stride Bank, for $590 million in cash. After the transaction is completed, Chime will transform from a fintech platform reliant on partner banks into a financial holding company with a regulated banking subsidiary, thereby gaining the ability to expand its consumer credit business. Stride Bank will be renamed Chime Bank and operate as a wholly-owned subsidiary of Chime. Chime expects that this acquisition will boost earnings per share and generate net synergies exceeding $100 million, primarily from savings on partner bank fees, expansion of loan products, and reduced funding costs. The transaction is expected to be completed in the first half of 2027, pending regulatory approval.
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