- Enova is acquiring Grasshopper Bank for $369 million, creating a full-stack digital financial services provider that blends online lending with modern API-driven banking.
- Grasshopper brings $1.4 billion in assets, $3 billion in deposits, and a growing sponsor-bank portfolio, strengthening Enova’s infrastructure, deposit base, and fintech capabilities.
- The deal show the benefits of digital lenders that move up-market by acquiring bank charters to stabilize funding, expand product suites, and compete in the next phase of fintech.
It may be mid-December, but that doesn’t mean it’s too late to announce a bank acquisition. Online financial services company Enova International revealed that Grasshopper Bancorp has agreed to be acquired in a cash and stock transaction valued at approximately $369 million.
Grasshopper Bank, which offers small business banking and lending tools, as well as embedded finance and BaaS, was founded in 2019 and currently holds more than $1.4 billion in total assets as of September 2025. In addition to small business banking, the digital-first bank focuses on startup banking, venture and tech-forward SMB tools, digital treasury management, and high yield business checking and savings products. Grasshopper Bank is also a sponsor bank, working with fintechs such as Pocketbook, Manifest, and Sydecar. The bank, through its direct banking and BaaS product offerings, holds $3 billion in total deposits.
“We’re thrilled to join forces with Enova, a market leader in digital lending and a true innovator in the use of technology and analytics in the financial services sector,” said Grasshopper CEO Mike Butler. “This combination of enhanced digital lending and banking will enable us to serve an even broader set of customers while expanding and strengthening the product offerings for our current clients.”
Enova anticipates that this transaction will combine its consumer and small business online lending capabilities with Grasshopper’s digital banking infrastructure to help it become a stronger, more diversified financial services provider. With more than 13 million customers, Enova’s portfolio has seven brands, including OnDeck, Headway Capital, The Business Backer, CashNetUSA, NetCredit, Simplic, and Pangea.
“Acquiring and partnering with Grasshopper creates a powerful digital bank that positions us to offer a more comprehensive suite of financial solutions across more states to empower consumers and small businesses with the products they need to succeed,” said Enova Chairman and CEO David Fisher. “Our complementary capabilities and shared customer-first mindset mean we can grow and innovate faster, together. We’re excited to welcome the Grasshopper team to Enova.”
Once the deal is finalized, Enova will be formed as a bank holding company with Grasshopper Bank as its subsidiary. Butler will stay on as President of Grasshopper Bank, reporting to Steve Cunningham, who will be appointed CEO of Grasshopper Bank and will assume the role of Enova CEO on January 1, 2026.
The deal creates a vertically integrated fintech–bank hybrid that combines Enova’s scale in online consumer and SMB lending with Grasshopper’s modern, API-driven banking infrastructure, giving Enova a foothold in embedded finance. The announcement also offers a clue of how digital lenders and digital banks are converging to compete in the next phase of financial services. We may see other digital lenders move up-market by acquiring bank charters to stabilize funding and expand their product sets.
Photo by Roberto Carlos Blanc Angulo
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