The Bancorp stock dropped 21% as Chime's $590 million acquisition of Stride Bank signals a potential shift toward in-house banking, jeopardizing a key revenue stream for the fintech-focused lender.
The Bancorp stock fell 20.9% after Chime agreed to acquire Stride Bank, threatening The Bancorp's fintech relationship with Chime.
The Bancorp shares plummeted 20.9% on Wednesday after fintech giant Chime announced a $590 million deal to acquire Stride Bank. The acquisition threatens The Bancorp's critical role as a banking partner for Chime, raising investor concerns that other fintech clients may follow suit by bringing banking operations in-house.
The stock dropped because Chime, a major client, announced it will acquire Stride Bank, which could lead to a reduction in Chime's reliance on The Bancorp for banking services.