Evolve Bank & Trust

Evolve operates as a bank-as-a-service (BaaS) provider — a regulated, FDIC-insured institution that issues debit cards, holds deposits, and provides banking infrastructure for FinTech companies. Key partners include Stripe, Aspiration, Betterment, and others. The bank essentially provides the regulated back-end that allows these digital firms to offer banking products without becoming banks themselves.

Evolve generates revenue from net interest income on its loan portfolio, as well as fee income from its BaaS partnerships. These partnerships include deposit servicing, debit card interchange fees, and lending-as-a-service arrangements. The bank also originates traditional commercial real estate and consumer loans on its own balance sheet.

No. Evolve Bank & Trust is a publicly reportable industrial bank regulated by the Tennessee Department of Financial Institutions and the Federal Reserve. It is not structured as a family office. Its ownership is not concentrated in a single family. It does maintain a commercial banking operation and a technology office in California.

In May 2023, the Federal Reserve issued a consent order against Evolve requiring improvements in risk management and compliance practices related to its FinTech partnerships. The order cited deficiencies in oversight of third-party relationships. Evolve has publicly stated it is cooperating and implementing the required changes.

Publicly disclosed partners include Stripe (through Stripe Issuing), Aspiration, Betterment, and a range of smaller FinTech firms. Evolve also provides banking services to several neobanks and wealth-management platforms. The full list is not public.