What Grasshopper Bank does

Grasshopper Bank, N.A. is a federally chartered, full-service digital bank headquartered in New York that targets small businesses, startups, VC/PE firms, and fintech companies with a platform-plus-modules product architecture. Core offerings include the Innovator Business Checking and Money Market Savings suite (tiered APY up to 3.00%, unlimited 1% cash back on signature debit purchases, no monthly or overdraft fees, and enhanced FDIC insurance up to $125 million via the ICS Deposit sweep), the Accelerator suite for startups, and Grasshopper Treasury (a robo-adviser-powered product built with Waldo that targets yields up to 5% on a $250,000 minimum balance). Lending products span SBA 7(a) loans up to $5 million, SBA 504 loans, an Innovator Term Loan of $10K–$200K, plus Sponsor Finance, Commercial Real Estate, and Yacht Lending through dedicated bankers.

The technology stack is cloud-native and API-first, combining the Narmi digital banking platform, FIS core banking infrastructure, and integrations with Plaid, Quickbooks, Autobooks, Xero, and Hummingbird; a proprietary BaaS / Embedded Finance offering is delivered via Treasury Prime and Increase. Grasshopper's signature innovation is its MCP-based AI Connector, the first Model Context Protocol server launched by a U.S. bank, now supporting read-only integration with Claude and ChatGPT for AI-driven cash-flow and spending insights. Reported scale includes approximately $1.6B in total assets as of mid-2026, 83% asset growth in 2025, and an M&A-driven pending combination with Enova International announced December 2025 at a ~$369M valuation (expected to close H2 2026, creating an $8.8B-asset combined entity).

Revenue is generated primarily through net interest income on deposits and loans (SBA 7(a)/504, Innovator Term, CRE, Yacht, Sponsor Finance), with diversifying contributions from BaaS program fees, treasury management fees (Grasshopper/Waldo), transaction and service fees, and marketplace referral economics (Ramp, Mercantile, and 15+ other fintech partners). The company monetizes across three go-to-market motions: self-serve direct-to-consumer digital onboarding for SMB/startup depositors, an OEM/embedded finance motion via BaaS partners serving fintechs and platforms like InvestNext (1,600+ GPs, $23B AUM), and an enterprise field-sales motion for Sponsor Finance, CRE, Yacht, and VC/PE banking clients. The 2025 funding round ($46.6M led by Patriot Financial Partners) and the Auto Club Trust FSB acquisition supported balance-sheet growth leading into the Enova combination.

Name

Grasshopper Bank

Legal name

Grasshopper Bank, N.A.

Website

https://www.grasshopper.bank

Company type

Private

Founded year

2016

Operating status

Operating

Headcount range

101–250 employees

Short description

Grasshopper Bank, N.A. is a federally chartered digital bank serving U.S. small businesses, startups, VC/PE firms, and fintechs with high-yield deposit accounts, SBA and specialty lending, embedded banking-as-a-service, and an MCP-based AI Connector for AI-driven financial insights.

Ownership category

akta.pro rank

Product category

Digital Business Banking

NAICS

Commercial Banking (522110), Depository Credit Intermediation (5221)

SIC

National Commercial Banks (6021)

akta.pro primary industry

General SME & Middle-Market Commercial Banking (FSABABAA)

akta.pro secondary industries

SME Banking Suite (Business Accounts, Invoicing, Payroll Integrations) (FSAGAAAI), Treasury, Cash Management & Liquidity (SME) (FSAGAJAG), Transaction Analytics & Cash-Flow Insights (risk signals, forecasting) (FSAGACAG)

Keywords

• Digital business banking
• Banking-as-a-service
• SBA lending solutions
• Embedded finance platform
• Small business treasury management

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure, Others

Revenue model

1. Net Interest Income on Deposits and Loans: Primary revenue source from the spread between interest earned on loans/treasury investments and interest paid on deposits. Includes SBA loans (up to $5M), Innovator Term Loans ($10K-$200K), commercial real estate loans, yacht loans, sponsor finance, and high-yield deposit products (Innovator Savings up to 3% APY).
2. Transaction and Service Fees: Fee-based revenue from wire transfers (Domestic Wire Out $10, International Wire Out $25, International Wire In $5), stop payments ($25), dormant account fees ($5/month), account research ($25/hour), and other miscellaneous service charges per the Fee Schedule.
3. Embedded Finance / BaaS Revenue: Revenue from banking-as-a-service partnerships with fintechs (Treasury Prime, Increase, Narmi integrations), sponsor bank arrangements, and API-based banking services. Includes fees from partner integrations such as InvestNext's Transact product.
4. Treasury Management Fees: Revenue from Grasshopper Treasury product (in partnership with Waldo) for business clients with minimum $250,000 balance, providing AI-driven treasury portfolio management with target yields up to 5%.
5. Marketplace Partner Referrals and Card Distribution: Revenue from Ramp corporate cards and Mercantile credit cards offered through the in-app Marketplace, with sign-on bonuses ($1,000 for Ramp) and revenue share arrangements with card partners.

Pricing tiers

Go-to-market motion6 records

Distribution channels5 records

Marketing channels6 records

Core offering

Grasshopper Bank, N.A. is a federally chartered digital business bank that delivers digital operating accounts (Innovator Business Checking, Innovator Money Market Savings, Accelerator Checking, Accelerator Savings), lending products (SBA 7(a) and 504, Innovator Term Loan, CRE, yacht, and sponsor finance), a Visa business debit card with 1% cash back, an AI-powered Treasury product via Waldo, and a Banking-as-a-Service / Embedded Finance platform for fintech partners. The bank serves U.S. small businesses, startups, and venture-backed companies in all 50 states and DC, with a pending acquisition by Enova International expected to close in H2 2026.

Product overview

Grasshopper Bank is a federally chartered, full-service digital business bank offering a platform-plus-modules architecture organized around three core audiences: small businesses, startups, and fintech/embedded partners. The platform centers on the Innovator Business Checking, Innovator Money Market Savings, Accelerator Checking, and Accelerator Savings accounts, complemented by the Grasshopper Treasury product (a robo-advisor-powered treasury management offering built with Waldo) and the Grasshopper Business Debit Card. Lending products layer on top, including SBA 7(a), SBA 504, Innovator Term Loan, Sponsor Finance, Commercial Real Estate Lending, and Yacht Lending. Partner-issued card products (Ramp Corporate Cards and Mercantile Credit Cards) extend the platform via its Marketplace. For fintech partners, Grasshopper offers Embedded Finance, API Banking, and Banking-as-a-Service (BaaS) delivered via integrations with Treasury Prime, Increase, and Narmi, plus a Grasshopper Mobile Banking app and an MCP-based AI Connector (AI Connections) that supports Claude and ChatGPT for AI-driven financial insights. The offering is unified by FDIC membership, enhanced FDIC coverage up to $125 million via ICS sweeps, and SBA delegated lender status.

Differentiator

Problem solved

Functional benefit

Brands

• Innovator: Small business banking suite including Innovator Business Checking, Innovator Money Market Savings, and Innovator Term Loan.
• Accelerator
• Grasshopper Treasury

Products and services

• Innovator Business Checking Digital small business checking account offering tiered APY up to 1.35% on balances of $25,000-$250,000, unlimited 1% cash back on signature-based debit card purchases, no monthly or overdraft fees, free ACH and incoming domestic wires, mobile check deposit, and instant-issue virtual debit cards. $100 minimum opening deposit.
• Innovator Money Market Savings High-yield business money market savings account offering up to 3.00% APY on balances of $25,000+, 1.55% APY on balances $0.01-$24,999.99, unlimited fee-free transactions, FDIC insurance up to $250,000 with enhanced coverage up to $125 million via ICS Deposit sweeps, and a $300 sign-on bundle bonus when paired with Innovator Business Checking.
• Accelerator Checking Startup-focused digital checking account built into the Accelerator Product Suite, offering tiered APY up to 1.35%, unlimited 1% cash back, free ACH and domestic wires, no monthly fees, and integrations with accounting and bookkeeping tools.
• Accelerator Savings (Startup Savings) Startup-focused money market savings account offering up to 3% APY on balances of $25,000+, tiered rates starting at 1.55% APY from $0.01, no monthly fees, unlimited fee-free transactions, FDIC insurance up to $250,000, and enhanced FDIC coverage up to $125 million.
• Grasshopper Treasury Treasury management offering developed in partnership with Waldo, a US-regulated investment adviser. Allocates capital across U.S. and international treasuries, equities, and fixed-income assets with target yields up to 5%, same-day withdrawals, algorithmic risk-hedging, AI-driven insights, and extended SIPC coverage. Requires a $250,000 minimum balance.
• Venture Capital & Private Equity Banking Banking services tailored for venture capital and private equity firms, accessed via a dedicated commercial online banking platform. Targeted offerings include specialized deposit products, custom rate sheets, and bespoke support for fund operations.
• SBA 7(a) Lending SBA 7(a) loans up to $5 million for a wide range of small business needs including working capital, acquisitions, equipment, and renovations. Grasshopper Bank is a delegated SBA Lender offering a digital application process.
• SBA 504 Loan Long-term, fixed-rate SBA 504 financing for major business assets such as commercial real estate or large equipment purchases.
• Innovator Term Loan Small business term loan available exclusively to existing Grasshopper clients (must have held a deposit account for at least 6 months), offering $10,000-$200,000 lump-sum funding within one business day of approval. No hard credit pull or collateral required, but a personal guarantee is required. Fixed 36-month term with no prepayment penalties; rates as low as 6.99% APR.
• Sponsor Finance Financing solutions tailored for financial sponsors and private equity-backed transactions.
• Commercial Real Estate Lending Commercial real estate lending services led by Grasshopper's Head of Commercial Real Estate, providing financing to entrepreneurs, real estate developers, and business leaders.
• Yacht Lending Yacht financing services led by Grasshopper's Head of Yacht Lending, providing personalized loan offerings based on client needs with over 30 years of industry experience.
• Embedded Finance (BaaS / API Banking) Banking-as-a-Service platform that enables fintech companies and partners to leverage Grasshopper's banking infrastructure, APIs, and experienced team for corporate and end-client banking needs. Includes API Banking and BaaS sub-offerings, with routing provided via partners such as Treasury Prime and Increase.
• Grasshopper Business Debit Card Visa-branded business debit card offering unlimited 1% cash back on signature-based purchases, instant-issue virtual debit cards, team-based card management with spend limits and merchant/category restrictions, digital card controls (lock/unlock, real-time alerts), and fee-free ATM access at 37,000+ MoneyPass and 8,500+ SUM ATMs.

Quantifiable outcome

• Up to 5% target yields on treasury portfolios via Waldo
• +5 more outcomes

Named customers6 records

Segments5 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration22 records

AI capability9 records

Feature6 records

Partnerships

40 partnerships are on record, tiered flagship, flagship/acquirer, major, mid and minor.

• WaldoflagshipStrategic or Co-development Partner · 15 June 2026Co-developed Grasshopper Treasury, a treasury management platform with AI-powered portfolio allocation across US and international treasuries, equities, and fixed-income assets. Target yields up to 5%, same-day withdrawals, algorithmic risk-hedging. Minimum $250,000 balance; AI Advisor integration. Waldo is a US-regulated investment adviser.
• InvestNextflagshipStrategic or Co-development Partner · 7 May 2026Co-developed Transact, a purpose-built business account for real estate General Partners during capital raises. Account setup in as little as one business day; zero ACH fees, automatic wire reconciliation, built-in investor KYC/AML. Projected ~$3,000 savings on $10M raise. InvestNext serves 1,600+ GPs with $23B AUM.
• Enova Internationalflagship/acquirerStrategic or Co-development Partner · 11 December 2025Acquirer of Grasshopper Bancorp (parent of Grasshopper Bank, N.A.) in a definitive agreement valued at approximately $369 million (50% cash, 50% newly issued shares). Creates a combined $8.8B-asset bank with $3B in deposits; Grasshopper stockholders receive ~5.3% of combined company. Expected to close H2 2026 subject to OCC, Federal Reserve, and shareholder approvals.
• NarmiflagshipTechnology or Integration · 22 August 2025Co-developed the first MCP (Model Context Protocol) server by a U.S. bank for AI-driven insights. Narmi provides the digital banking platform and integration capabilities that enable Grasshopper's AI Connector for Claude and ChatGPT integration. Case study: 'Grasshopper Bank wins over the SMB market with Narmi.'
• Auto Club Trust FSBmajorStrategic or Co-development Partner · 5 August 2025Acquired by Grasshopper Bank using proceeds from the $46.6M funding round; significantly increased the bank's asset size. Previously, Jai Raju (Chief Data Officer of Grasshopper) served as CIO and CISO of Auto Club Trust.
• Treasury PrimemajorTechnology or IntegrationBanking-as-a-Service integration partner providing core banking infrastructure. Enables fintechs supported by Treasury Prime to leverage Grasshopper's banking services and routing. Featured in case study: 'Future of Banking: Grasshopper Bank' and 'How Grasshopper Bank is Preparing for Growth on Banking as a Service and Fintech Integration.'
• IncreasemajorTechnology or IntegrationBaaS integration partner enabling fintechs supported by Increase to leverage Grasshopper Bank's banking services and routing numbers.
• FISmajorTechnology or IntegrationCore banking technology partner displayed on Grasshopper's homepage partner section.
• MantlmidTechnology or IntegrationTechnology integration partner displayed on Grasshopper's homepage partner section.
• AlloymajorTechnology or IntegrationIdentity verification (KYC/KYB) partner. Case study: 'Grasshopper reduced manual reviews by 58% with Alloy.' Used for client onboarding, fintech partner verification, and compliance automation.
• CablemidTechnology or IntegrationAutomated compliance testing partner. Case study: 'How Grasshopper Bank Saved 50+ Hours per Fintech Partner with Cable's Automated Compliance Testing.'
• NeuroIDmidTechnology or IntegrationFraud detection partner. Case study: 'Grasshopper Bank Closes Fraud Gaps and Maximizes Efficiency with NeuroID.'
• HummingbirdmidTechnology or IntegrationTechnology partner displayed on Grasshopper's homepage partner section.
• GreenlitemidTechnology or IntegrationTechnology partner displayed on Grasshopper's homepage partner section.
• BaselayermidTechnology or IntegrationKYB and lending automation partner. Case study: 'Grasshopper Bank Streamlines KYB and Lending Automation with Baselayer.'
• rPath AutomationmidTechnology or IntegrationAutomation partner. Case study: 'Rapid Automation Response to BIN Attacks at Digitally Native Grasshopper Bank.'
• Fintel ConnectmidGTM or Marketing PartnerMarketing/lead generation partner. Case study published: 'Case Study: Grasshopper Bank.'
• PlaidmajorTechnology or IntegrationAccount aggregation and external transfer integration. Complimentary for Grasshopper clients; used for connecting external bank accounts, initial funding deposits, and payment app integrations.
• AutobooksmajorTechnology or IntegrationAutomated bookkeeping integration partner; complimentary for Grasshopper clients with additional fees for certain functionality.
• QuickbooksmajorTechnology or IntegrationAccounting software integration; complimentary for Grasshopper clients to sync transactions and streamline bookkeeping.
• XeromidTechnology or IntegrationAccounting software integration (Beta) for streamlined bookkeeping and transaction syncing.
• VisaflagshipTechnology or IntegrationDebit card network and rewards partner. Grasshopper Visa Business Debit Card offers unlimited 1% cash back on signature-based purchases with enrollment in Visa SavingsEdge for additional savings at gas, dining, and more.
• RampmajorChannel Partner/ Reseller/ DistributorCorporate card partner offered through Grasshopper Marketplace. Clients get a $1,000 sign-on bonus via Amazon eGift Card after first balance payment of $1,000 within 30 days. Up to 20x higher card limits, 1.5% cash back, and seamless integration with Grasshopper's banking platform.
• Mercantile (Onboard Partners)majorChannel Partner/ Reseller/ DistributorBusiness credit card partner offered through Grasshopper Marketplace. Up to 2% cash back on purchases, exclusive vendor offers, travel perks, unlimited employee cards. Credit card program issued by Hatch Bank pursuant to license from Mastercard. APRs 16.9%-29.65%.
• BooposmidChannel Partner/ Reseller/ DistributorM&A advisory and financing partner offered through Grasshopper Marketplace. Clients receive a free advisory session, free valuation, and dedicated M&A advisor. Boopos offers non-dilutive business acquisition loans for SMBs without personal guarantees.
• BurklandmidChannel Partner/ Reseller/ DistributorAccounting/CFO services partner for startups offered through Grasshopper Marketplace. Clients get 50% off bookkeeping and accounting services for 3 months. Burkland serves 800+ venture-backed startups across SaaS, Healthcare, Fintech, and Consumer.
• CapchasemidChannel Partner/ Reseller/ DistributorGrowth financing partner offered through Grasshopper Marketplace for B2B SaaS companies. Clients get preferential access, a dedicated growth advisor, and 10% rate discount when funds are deposited into a Grasshopper account.
• ChoreminorChannel Partner/ Reseller/ DistributorBack-office operations partner offered through Grasshopper Marketplace. Clients get 15% off first month; Chore manages HR, compliance, finance, and equity for founders.
• Constant ContactminorChannel Partner/ Reseller/ DistributorDigital marketing platform partner offered through Grasshopper Marketplace. Clients get 15% off all paid plans.
• doolaminorChannel Partner/ Reseller/ DistributorBookkeeping, taxes, and LLC formation partner offered through Grasshopper Marketplace. Clients get 10% off doola services.
• FreshBooksmidChannel Partner/ Reseller/ DistributorSmall business management software partner offered through Grasshopper Marketplace. Clients get 60% off for 6 months on Lite, Plus, and Premium plans.
• GustomidChannel Partner/ Reseller/ DistributorHR platform partner offered through Grasshopper Marketplace. Clients get 3 months of free payroll plus integrated HR solution (new Gusto users only). Gusto serves 300,000+ businesses.
• LinearminorChannel Partner/ Reseller/ DistributorProject management partner offered through Grasshopper Marketplace. Clients get 3 months free on any Linear plan.
• RollfiminorChannel Partner/ Reseller/ DistributorInsurance benefits partner offered through Grasshopper Marketplace. Clients get free office hours, quoting, plan design, and dedicated benefits support.
• Sky SystemzminorChannel Partner/ Reseller/ DistributorPayment processing partner offered through Grasshopper Marketplace. Clients get 10% off processing fees for life; no minimum transactions or volume limits.
• SlackminorChannel Partner/ Reseller/ DistributorProductivity platform partner offered through Grasshopper Marketplace. Clients get 25% off Slack Pro and Business+ premium plans for 12 months.
• VismeminorChannel Partner/ Reseller/ DistributorVisual design platform partner offered through Grasshopper Marketplace. Clients get 10% off Visme Pro or Starter annual plans.
• VouchminorChannel Partner/ Reseller/ DistributorBusiness insurance partner offered through Grasshopper Marketplace. Clients get 5% off insurance policy; digital-first insurance for tech startups.
• Mediaplanet (Small Business Month)minorGTM or Marketing PartnerGrasshopper participated as a contributor in Mediaplanet's Small Business Month campaign appearing in USA Today and online (May 2026), highlighting innovation and AI adoption among small businesses.
• U.S. Small Business Administration (SBA)majorStrategic or Co-development PartnerGrasshopper Bank is a delegated SBA Lender; cosponsored SBA National Small Business Week 2026 (May 3-9) including the Virtual Summit on May 5-6 cohosted with America's Small Business Development Center. Grasshopper is featured as a Silver/Bronze level sponsor alongside Amazon, Block, Meta, Lockheed Martin, Visa (Platinum), Google and T-Mobile (Gold).

Scale indicators14 records

Recent moves6 records

Expansion highlights7 records

Direct peers

• Mercury: Mercury provides digital banking, treasury, and credit products to startups and SMBs via partner banks. It is the most direct competitor to Grasshopper's Innovator/Accelerator suite, competing on yield, no-fee checking, and startup-focused tooling.
• Bluevine: Bluevine offers digital business checking, high-yield savings, and working-capital lines to SMBs via partner-bank relationships. It directly competes with Grasshopper's small business checking and SBA lending products.
• Relay Financial: Relay provides digital business banking with multiple sub-accounts, bill pay, and no-fee checking targeting SMBs. It overlaps directly with Grasshopper's Innovator Business Checking and cash-flow management features.
• Brex: Brex offers corporate cards, business banking, and treasury to startups and mid-market companies. It overlaps with Grasshopper on startup banking, corporate cards (via the Ramp marketplace partner), and high-yield treasury.
• Novo: Novo is a digital SMB banking platform built on a partner-bank model, providing no-fee checking, invoicing, and integrations. It targets the same SMB/freelancer segment as Grasshopper's Innovator suite.
• Piermont Bank: Piermont Bank is a New York-based digital community bank offering SBA lending, business checking, and treasury services. It is a similar-profile community/digital bank targeting SMBs with comparable product breadth to Grasshopper.
• Lead Bank: Lead Bank is a sponsor bank providing Banking-as-a-Service infrastructure to fintechs, including deposit and card programs. It directly competes with Grasshopper's Embedded Finance / BaaS offering.

Broad incumbents

• Live Oak Bank: Live Oak Bank is a digitally-native, FDIC-insured bank focused on small business lending (SBA, USDA) and deposit products. It is comparable to Grasshopper's SBA 7(a)/504 and small business deposit offerings, though at meaningfully larger scale.
• LendingClub: LendingClub acquired Radius Bank (Grasshopper CEO Mike Butler's prior employer) in 2021 and operates a national digital bank with consumer/SMB lending. It is a comparable digital-bank-plus-lending platform and direct precedent for Grasshopper's growth trajectory.
• First Internet Bank: First Internet Bank is an established, FDIC-insured digital-first bank offering business checking, savings, and lending to SMBs nationwide. Comparable as a longer-tenured digital commercial bank with national reach and a similar deposit-led model.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks7 records

Key highlights7 records

Customer concentration

• Xx.com/grasshopperbank
• YouTubeyoutube.com/@grasshopperbank
• Facebookfacebook.com/grasshopperbank
• LinkedInlinkedin.com/company/grasshopper-bank
• Instagraminstagram.com/grasshopperbank

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles20 records

Subsidiaries1 record

Funding overview

Funding rounds5 records

Investors10 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments4 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Grasshopper Bank