Grasshopper Gearing Up To Launch Challenger Bank In New York

Grasshopper, a new bank challenger in New York, is gearing up to go after the banking industry, reported FinTech Futures.

According to the report, the bank formerly went by the name New York Ventures Bank and is in the process of getting a banking license. The report noted that it chose the Temenos T24 banking system, with Grasshopper aiming to provide commercial banking products and services to businesses in New York. FinTech Futures noted that Grasshopper’s CFO is Sangeeta Kishore and the CEO will be Judith Erwin, former executive at Square 1 Financial.

Grasshopper isn’t the only bank challenger that’s trying to enter the U.S. market. After applying for a banking license in Europe, Revolut plans to apply for one in the United States in the near future. CEO Nikolay Storonsky said the startup could apply for a license in California by the end of 2018, Reuters reported.

However, through a banking partner, Revolut plans to roll out services in the U.S. this summer. As of now, the company has five employees in New York and plans to open an office in California. The company, which has 400 employees worldwide, currently offers almost 2 million users a debit card and a mobile app to help make it less expensive to send money.

The news comes a few months after Revolut announced $250 million in a new funding round. In a press release, the U.K. FinTech said that with the $250 million, its valuation has jumped five times in less than a year to $1.7 billion. Revolut noted that it has become one of the fastest tech companies in Europe to reach unicorn status. The Series C round of fundraising was led by DST Global of Hong Kong and included new and existing investors, such as Index Ventures and Ribbit Capital. The company has raised $340 million since its launch three years prior.



The pressure on banks to modernize their payments capabilities to support initiatives such as ISO 20022 and instant/real time payments has been exacerbated by the emergence of COVID-19 and the compelling need to quickly scale operations due to the rapid growth of contactless payments, and subsequent increase in digitization. Given this new normal, the need for agility and optimization across the payments processing value chain is imperative.