According to PYMNTS.com, online lender Enova has agreed to acquire digital bank Grasshopper in a deal valued at $369 million. The transaction, announced in a December 11 press release, is subject to shareholder and regulatory approvals and is expected to close in the second half of 2026. Upon closing, Enova will become a newly formed bank holding company, with Grasshopper Bank operating as its subsidiary. Enova’s current CFO, Steve Cunningham, will become CEO of Enova on January 1, 2026, and then also become CEO of Grasshopper Bank after the deal closes, while Grasshopper’s current CEO, Mike Butler, will become the bank’s president. Enova CEO David Fisher stated the move creates a “powerful digital bank” to offer a more comprehensive suite of financial solutions. The news follows Enova’s strong Q3, where it reported $803 million in revenue and $2 billion in loan originations, up 16% and 22% year-over-year, respectively.
The Banking Charter Endgame
Here’s the thing: this isn’t just an acquisition. It’s a fundamental transformation. Enova, which has built a massive online lending business, is essentially buying a banking license. For any non-bank lender, that’s the holy grail. Why? Because it changes the entire economics of their business. Instead of relying on expensive warehouse lines of credit or securitizations to fund their loans, they can use customer deposits. That’s a cheaper, more stable source of capital. It’s a move we’ve seen before with companies like SoFi, but it’s a huge deal for a player of Enova’s scale. They’re not just adding a product line; they’re rewiring their financial engine.
The Long Road Ahead
But let’s not get ahead of ourselves. A late 2026 closing date? That’s a lifetime in the fintech world. This deal is crawling through regulatory purgatory for the better part of two years. The OCC and the Fed will scrutinize this heavily, looking at Enova’s lending practices, compliance, and overall risk. It’s a complex process, and there’s always a chance something could go sideways. In the meantime, both companies have to operate as if the deal will happen, which is its own kind of managerial challenge. You can read the official announcement in their press release.
Leadership Chess Game
The leadership plan is also fascinating. Steve Cunningham moving from Enova CFO to Enova CEO, and then *also* taking the CEO role at the acquired bank? That’s a huge vote of confidence in him and signals Enova wants tight, integrated control. Mike Butler, Grasshopper’s founder and CEO, stepping into a President role reporting to Cunningham is the classic “founder stays on during transition” play. It suggests they need his knowledge and relationships, but the ultimate strategic driver will be Enova. This leadership shuffle was actually telegraphed months ago, as detailed in Enova’s July announcement. So this acquisition seems like the capstone of a plan that’s been in motion for a while.
What It Really Means
So what’s the bottom line? Enova is betting that the future of digital finance isn’t in being just a lender, but in being a full-stack bank. They want to own the entire customer relationship. Imagine getting a small business loan from them, and then also using them for your business checking account, treasury management, and maybe even payment processing. That’s the vision. It’s about cross-selling, deeper data insights, and ultimately, higher profitability per customer. For Grasshopper’s existing clients, the message is about “expanding and strengthening” products, but big mergers always bring integration headaches. Grasshopper customers might want to keep an eye on communications, similar to the guidance they provided during a previous merger. If Enova can pull this off, it becomes a completely different beast—a digitally-native bank with serious lending chops. That’s a formidable competitor for anyone in the space.
