21 Hats Podcast

Dashboard: Can a Digital Bank Deliver for Business Owners?

14 snips
Mar 6, 2026
Mike Butler, CEO of Grasshopper Bank and a digital-banking veteran, explains a branchless bank that offers full-service lending. He discusses fast digital onboarding, using alternative data and AI to speed lending and find transactions, balancing bank-like rates with quick decisions, and the strategic merger with Enova to scale digital deposits and lending.
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ADVICE

Cut Loan Paperwork With Data Scorecards

  • Do reduce application friction by using data scorecards and asking fewer, targeted questions.
  • Grasshopper cuts SBA and term loan forms to ~15 questions and leverages external data to avoid unnecessary paperwork.
ADVICE

Answer Loan Requests Quickly

  • Do give fast definitive answers to applicants to respect owners' time.
  • Grasshopper aims to respond within less than an hour with yes/no or request for more info rather than leaving applicants waiting for weeks.
INSIGHT

Bank‑Like Rates With Slightly Conservative Credit

  • Grasshopper prices like a traditional bank rather than a non‑prime fintech, favoring prime+ spreads.
  • Butler describes their credit stance as slightly conservative—'11 o'clock' compared with riskier lenders.
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