In a groundbreaking move, New York City-based digital bank, Grasshopper Bank has announced a new AI-powered treasury management offering. The service is developed in collaboration with corporate robo-adviser Waldo and aims to provide Grasshopper’s business banking clients direct access to treasury portfolios via the bank’s digital platform.
Grasshopper and Waldo: A Strategic Partnership
The partnership with Waldo allows Grasshopper users to be connected with Waldo’s AI Advisor. This AI-powered robo-adviser is designed to provide automated insights and investment advice. The move aligns with the banking industry’s current trend of leveraging AI recommendations in client-facing apps. The likes of Bank of America’s Erica and Wells Fargo’s Fargo have been providing such recommendations for tracking spending and banking. However, such applications are less common in business banking, making Grasshopper’s move a noteworthy one.
Eligibility for the New Treasury Investment Service
Grasshopper business customers will need to meet certain eligibility requirements to use the new treasury investing service. These include maintaining a minimum balance of $250,000 to access the treasury system. However, no minimum is required for the investment products themselves. Currently, Grasshopper Treasury is available via waitlist to enterprise users.
“Fast-growing companies need treasury solutions that are flexible, accessible and built around the way they actually manage cash,” said Rob Burnett, director of startup banking at Grasshopper. “Through our partnership with Waldo, we are giving clients a smarter way to put idle cash to work while maintaining the liquidity and control they need to run and grow their businesses.”
Waldo’s Robo-Adviser: Offering Variety and Security
Waldo, an SEC-registered investment advising company, offers a variety of treasury portfolios with same-day withdrawals and target yields of up to 5%. These specifics are on the assumption of an account value over $10 million and an associated 0.1% management fee, according to the service’s terms and conditions. The robo-advisor holds its assets via the Depository Trust and Clearing Corporation and is backed by $75 million of extended Securities Investor Protection Corporation coverage, according to the company.
Grasshopper Bank’s Journey
Grasshopper Bank made history in 2019 when it became the first de novo bank chartered by the OCC in the Northeast since the 2008 financial crisis. The bank specializes in banking for small businesses, startups, and venture capital firms. It also focuses on Small Business Administration and commercial real estate lending, as well as banking-as-a-service.
In 2025, the bank acquired Michigan-based federal savings bank Auto Club Trust to expand into retail banking and gain a new source of deposits from a pool of 13.8 million American Automobile Association customers across 13 states. Later that year, the bank raised $46.6 million to support the ACT acquisition.
The Pending Acquisition by Enova
Grasshopper Bank is also awaiting regulatory approval to sell itself to Enova, a lending fintech with roots in payday lending. The deal was announced back in December 2025, and both companies hope to close the acquisition in the second half of this year. However, due to concerns about Enova potentially dodging caps on interest rates for its loans, consumer advocates have urged regulators to reject the deal or impose restrictions as part of an approval.
In conclusion, Grasshopper Bank’s new treasury investment service is a significant step forward in the integration of AI in business banking. The strategic partnership with Waldo provides a seamless and efficient platform for businesses to manage their treasury portfolios. As the bank awaits approval for its acquisition by Enova, it continues to innovate and provide value to its customers. Source: Here
