Enova Withdraws Application for Grasshopper Bancorp Acquisition
Enova International has withdrawn its applications with the Federal Reserve and Office of the Comptroller of the Currency to acquire Grasshopper Bancorp. The fintech cited regulatory uncertainty around nonbank entities seeking banking licenses as a key reason, noting that political pressure influenced the process rather than statutory factors. The decision follows significant opposition from state attorneys general who expressed concerns about Enova's potential circumvention of usury laws by partnering with banks in states without interest rate caps. Lawmakers like Senators Elizabeth Warren and Chris Van Hollen also urged regulators to deny the application, citing a history of predatory lending practices at Enova. Enova’s CEO emphasized that becoming a bank is no longer essential for its growth strategy, shifting focus instead toward leveraging existing capabilities and innovation.
