Digital business bank Grasshopper is relaunching with new technology and leadership as well as a fresh focus on startups and small and medium-sized businesses (SMBs), according to a press release.
Michael Butler was recently named CEO, president, and director of the startup challenger bank. Other new executive hires include Chris Tremont as chief digital officer; Grant Skeens as chief risk officer; Mike Lenahan, chief financial officer and Pete Chapman, chief technology officer.
Previously CEO of Boston’s Radius Bank for 13 years, Butler left following its sale last year to LendingClub. While at Radius, he focused on FinTech partnerships to move the bank in the direction of being digital-only.
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To better meet the needs of innovative SMBs, Grasshopper is developing tools that are specifically designed for startups and the venture community. The move comes as the bank experienced significant growth over the past year, with a 19% increase in loans, a 75% jump in deposits, and a 32% rise in total assets.
“Grasshopper is in its best position yet to help small businesses address the key challenge of taking advantage of digital tools to control their finances and deliver value to their customers,” said Butler.
“The past two years have underscored the fact that the small business market has been traditionally underserved by banks, causing many business owners to seek digital solutions to fit their needs — a trend that will continue beyond the pandemic. As serving small businesses is core to our business, and with our leadership and technology, we are uniquely positioned to solve this problem.”
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Aside from new technology, personnel, and products, Grasshopper also formed strategic partnerships with several FinTechs, including FIS, Treasury Prime, Narmi, Alloy, Hummingbird and Autobooks. The partnerships are intended to have a central role in rounding out Grasshopper’s product suite, and ensuring “unique solutions exist for any problem a client may present.”
Chartered in 2019 as a national bank by Judith Erwin, who served as CEO, and headquartered in Manhattan, Grasshopper raised more than $131 million before opening in May 2019. It was the first bank chartered by the Office of the Comptroller of the Currency in the Northeast in over 10 years and the fully digital financial institution in the commercial banking space. Erwin stepped down as CEO and departed the bank in May 2021.
