Enova’s tech, data to speed Grasshopper innovations, CEO says
Fintech acquiring digital-first Grasshopper Bank for $369M
Enova’s $369 million acquisition of Grasshopper, announced Dec. 11, is expected to boost the digital bank’s innovation efforts.
“Enova’s technology and data and analytic capabilities, especially around lending, will accelerate Grasshopper’s product innovations in small business and consumer lending,” David Fisher, Enova’s chief executive, told FinAi News.
Accelerating lending capabilities was already on the digital bank’s roadmap, Steve Kerr, chief credit officer at Grasshopper, previously told FinAi News.
For example, Grasshopper has deployed agentic AI in its underwriting process, streamlining much of discovery, Kerr said.
Fintech gains banking license
With the Grasshopper acquisition, Enova becomes the latest fintech to gain a banking license.
The following fintechs have already led the way:
- SmartBiz, a fintech providing loans to small and medium-sized businesses, acquired United Community Bancshares and its subsidiary, Centrust Bank, in March in a deal estimated at $31.6 million.
- In 2022 SoFi acquired Golden Pacific Bank for $750 million.
- In 2018 online lender Tandem acquired Harrods Bank for $103 million.
Enova’s Fisher had been looking for the right acquisition opportunity for a while.
“This has been part of Enova’s strategic plan for some time — it was simply a matter of identifying the right partner,” Fisher said. “As an innovative fully digital bank, Grasshopper is a fit for Enova.”
The deal is expected to close in the second half of 2026 pending regulatory approval.
“First, we will focus on providing the regulators a clear and effective application and business plan to support the approval process. During this time, both companies will operate their business as usual,” Fisher said. “Once we obtain approval and close the deal, Enova will integrate its near prime and SMB business into Grasshopper.”
Hear more from Andrew Braun, Grasshopper’s director of engineering, at the FinAi Banking Summit. Register here for early-bird pricing for the inaugural FinAi Banking Summit, taking place March 2-3 in Denver. View the full event agenda here.
