The new funding supported Grasshopper Bank’s merger with Auto Club Trust in April, and it will drive the ongoing expansion of its banking solutions for businesses and consumers, according to a Tuesday (Aug. 5) press release.
“From the beginning, our vision has been to redefine what digital banking can do for entrepreneurs, modern businesses and the ecosystem that supports them,” Grasshopper CEO Mike Butler said in the release. “With our recent acquisition, we are excited to expand that vision to serve consumers through our affinity banking partnership with The Auto Club Group.”
Grasshopper is maintaining “enormous growth” from last year in the wake of the Auto Club Trust acquisition, which helped drive total asset growth of 53%, to $1.33 billion, for the first half of the year, per the release. Deposits were up 81%, to $2.37 billion, with a 49% uptick in loans compared to Dec. 31, 2024.
“With the infusion of new capital, Grasshopper is poised to accelerate its upward trajectory, scaling its technology, expanding its product offerings, and deepening its commitment to delivering leading-edge, digital banking solutions that meet the evolving needs of both businesses and consumers,” the release said.
Meanwhile, traditional banks are responding to increasing digital expectations by taking a “singular, modernized approach to payments rather than a disparate collection of legacy systems,” PYMNTS wrote Tuesday.
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The PYMNTS Intelligence report “Payment Hubs Fuel Digital Modernization for Banks” examined how payment hubs are becoming critical for traditional financial institutions trying to clear the high bar set by FinTechs and digitally-focused challengers.
“For today’s banking customers, speedy, secure and frictionless payment experiences are no longer optional; they’re fundamental to their choice of bank,” PYMNTS wrote.
The research found that 60% of banks have implemented payment hubs or are in the process of implementing them. These hubs provide benefits not only for customers but for the banks themselves. By swapping out fragmented payment workflows with a single, intelligent command center, these hubs optimize operational efficiency, lower the need for manual intervention and errors, and reduce maintenance costs that come with disparate systems.
“The shift enables banks to enhance transparency, improve compliance, and free up resources for innovation and customer service, rather than being bogged down by complex infrastructure,” PYMNTS wrote.
