The Latest Move: Enova Decides to Skip the Line
If you cannot beat the banking system, apparently the next best option is to purchase it.
That is essentially what fintech lender Enova International is doing with its planned $369 million acquisition of Grasshopper Bancorp, a digital bank with more than $1.4 billion in assets and roughly $3 billion in deposits. The deal gives Enova something far more valuable than a brand name or customer list. It gives the company a national bank charter.
For fintech firms, that charter is the golden ticket. It means access to insured deposits, payment systems, lending authority, and direct relationships with regulators. In other words, credibility.
Enova executives were unusually candid about the appeal. Chief executive Steve Cunningham said the acquisition came with “everything that you need to successfully operate with a bank charter.” That is about as close as corporate America gets to saying, we bought the keys to the kingdom.
Strategically, the combination is straightforward. Enova brings two decades of online lending experience, machine learning underwriting, and a massive customer base. Grasshopper brings regulated banking infrastructure, deposits, and a charter. Together they create what executives describe as a more comprehensive digital financial services platform across more states.
David Fisher, Enova’s chairman, framed it as acceleration rather than reinvention, saying the combination would allow the companies to “grow and innovate faster, together.”
Translation. Why wait for traditional banks to adopt fintech ideas when you can simply own the bank.
Why Buying a Bank Is Suddenly Attractive
Fintech and crypto companies have long wanted entry into the mainstream financial system. But building a bank from scratch is slow, expensive, and uncertain.
Lawyers and bankers say acquisitions offer a shortcut. Chris Daniel of Paul Hastings noted that firms are actively weighing “the build versus buy question.”
Even regulators indirectly reinforce this logic. Michele Alt of Klaros Group explained that acquiring a bank does not reduce scrutiny, but it dramatically reduces time to operation. With an acquisition, a fintech can be functioning immediately after approval instead of spending years building infrastructure.
The advantages are substantial.
– Direct access to payment rails
– Low cost funding from deposits
– Ability to hold loans on balance sheet
– Membership in card networks
– Regulatory relationships
Alt also pointed out a more defensive reason. Relying on partner banks can be risky because fintech companies may be unaware of regulatory problems affecting those partners. Owning a charter removes that vulnerability and “future proofs” the business.
Nobody loves regulation, but survival tends to win that argument.
Other Fintechs That Already Tried the Same Strategy
Enova is not alone. In fact, it is following a playbook that has been quietly developing for years.
One of the earliest modern examples was LendingClub’s purchase of Radius Bank in 2020 for about $185 million. That deal allowed LendingClub to transform from a marketplace lender dependent on capital markets into a full digital bank funded by deposits. It is often cited as the template for fintech bank convergence.
SoFi followed a similar path by acquiring Golden Pacific Bancorp in order to secure a national bank charter. The move dramatically lowered its funding costs and allowed it to hold loans directly on its balance sheet. Industry observers viewed the acquisition as a milestone moment in fintech evolution.
More recently, SmartBiz obtained regulatory approval to acquire Centrust Bank and convert it into SmartBiz Bank. CEO Evan Singer explained the benefit bluntly. The company could now originate loans nationally and fund them with deposits rather than relying on partner banks, making operations more efficient and improving the customer experience.
Even crypto related firms are moving in this direction. Stripe’s acquisition of stablecoin infrastructure firm Bridge and its pursuit of a national trust bank charter reflects a strategy of integrating digital assets directly into regulated banking structures.
Across these examples, the logic repeats. Control funding. Control infrastructure. Control destiny.
The Industry Is Converging Whether Anyone Likes It or Not
Consultants say the broader trend is inevitable. Walter Mix of consulting firm BRG described the current moment as “an inflection point” where banks, payments companies, and digital assets are merging.
Tom Collins of West Monroe believes this convergence ultimately benefits consumers if risks are managed properly, saying it will “raise the bar technologically and digitally and deliver a better client experience.”
In other words, fintech is not replacing banks. It is becoming banking.
The Slightly Amusing Reality: Fintech Has the Money Now
There is also an unspoken dynamic at play.
Fintech companies generate enormous revenue. Many have sophisticated technology stacks, national customer bases, and strong profit margins. Convincing a conservative bank board to adopt radical innovation can be slow and frustrating.
Buying the bank solves that problem instantly.
Instead of persuading legacy institutions to modernize, fintech firms can simply acquire one and install their own systems. It is a bit like buying a restaurant because you did not like the menu.
From a purely economic standpoint, the math can make sense. Deposits provide cheaper funding than capital markets. Owning a charter reduces dependence on partners. And integration allows cross selling of services.
Even the regulatory burden becomes tolerable when the strategic upside is large enough. Cunningham acknowledged this directly, saying, “We’re not afraid of that oversight. We think the strategic opportunities outweigh any of the downsides.”
Experts caution that bank acquisitions are not trivial. They involve heavy oversight, capital requirements, and integration challenges. But conversations are clearly increasing.
Eric Risley of Architect Partners said bank acquisitions are “certainly something that comes up in conversation” with crypto clients, even if still somewhat exploratory.
Still, the direction of travel is obvious.
Fintech once wanted to disrupt banks. Now it is buying them.
And the punchline may be this. The fastest way to change the banking industry might not be innovation alone.
It might be ownership.
