Jake Miller
Cross River Bank is an American financial services organization that provides technology infrastructure to fintech and technology companies. It was founded in 2008 by French-born entrepreneur Gilles Gade as a community bank. Cross River maintains partnerships with local elected officials, community-based organizations, and fintech platforms to provide charity, financial literacy services, and financial solutions. The bank has received investments from notable private equity and venture capital firms, including KKR & Co. Inc. and Battery Ventures. Cross River is also known for its involvement in the U.S. Small Business Administration's Paycheck Protection Program during the COVID-19 pandemic, where it provided forgivable loans to small businesses.
| Characteristics | Values |
|---|---|
| Type of Organization | Financial services organization |
| Focus | Technology infrastructure |
| Services | Embedded payments, cards, lending, cryptocurrency |
| Type of Lending | Consumer, business, government-funded |
| Regulatory Standards | FDIC member |
| Location | Fort Lee, New Jersey |
| Year Founded | 2008 |
| Founder | Gilles Gade |
| Number of Employees | 500 |
| Notable Investors | Battery Ventures, Andreessen Horowitz, Ribbit Capital, KKR & Co. Inc. |
| Notable Partnerships | Current, Visa, Stripe, Operation HOPE Inc., New Jersey Legislature |
| Community Initiatives | Financial literacy, charity, grant programs |
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What You'll Learn
Cross River Bank's parent company and investors
Cross River Bank is an American financial services organization that provides technology infrastructure to fintech and technology companies. It was founded in 2008 by French-born entrepreneur Gilles Gade as a community bank. Cross River Bank is headquartered in Fort Lee, New Jersey, and services its clients with embedded payments, cards, lending, and cryptocurrency.
CRB Group, Inc. is the parent company of Cross River Bank and CRB Securities, LLC (“CRBS”). CRBS is a wholly owned subsidiary of CRB Group Inc, a bank holding company. CRBS is an SEC-registered broker-dealer and FINRA member. It was created to solve the financing needs of clients looking to access the capital markets through the issuance of securities. Through CRBS, Cross River clients can diversify their funding strategy in a flexible and operationally efficient manner.
Cross River has received investments from several notable private equity and venture capital firms. On November 1, 2016, Cross River Bank announced it had completed a $28 million growth equity investment led by investment firm Battery Ventures, with participation from Andreessen Horowitz and Ribbit Capital. In 2018, private equity firm KKR & Co. Inc. led a $100 million investment in the bank, including $75 million of its own capital. In 2022, Cross River Bank raised $620 million in financing, with Eldridge and Andreessen Horowitz co-leading the round. This funding round also included participation from existing investors and significant partners, as well as new investors such as T. Rowe Price Investment Management, Whale Rock, and Hanaco Ventures.
Cross River has also made acquisitions to expand its business. In 2021, it acquired Seed, a Portland, Oregon-based firm specializing in small business banking. This move expanded the firm's small business banking and technology services and provided its first presence on the West Coast. Cross River also established a venture capital arm, Cross River Digital Ventures, to invest in start-ups operating in sectors including lending, payments, investing, and fintech.
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The bank's community initiatives and partnerships
Cross River Bank is a community-focused bank that maintains partnerships with local elected officials and community-based organisations to provide charity and financial literacy services. The bank has been quick to adapt to changing market requirements and demands, embracing technological advancements while adhering to regulatory requirements.
In 2019, Cross River Bank initiated the Cross River Financial Literacy Initiative, collaborating with New Jersey-area public schools and legislators. This initiative later partnered with Operation HOPE, Inc. in March 2020, to provide financial literacy services to the community. Cross River also actively participates in volunteer programs and charity events, supporting workshops, learning sessions, and grant programs.
The bank has been recognised for its role in New Jersey's innovation economy, receiving a Grow NJ grant from the New Jersey Economic Development Authority (NJEDA) in 2019 to expand its operations. Cross River has also established partnerships with notable private equity and venture capital firms, including a $28 million investment led by Battery Ventures in 2016, and a $100 million investment led by KKR & Co. Inc. in 2018.
Cross River has a strong focus on technology and has developed its own banking core, the Cross River Operating System (COS), to meet the needs of its fintech banking partners. This system enables efficient processing of transaction-based payments via APIs, providing partners with a comprehensive suite of banking offerings. The bank also offers traditional banking services, such as deposits and accounts, while maintaining high regulatory, compliance, and consumer protection standards.
In 2023, Cross River partnered with Current, a leading US fintech platform, to launch a credit-building product aimed at empowering underserved communities to improve their financial well-being. This partnership combines Current's core technology with Cross River's proprietary operating system and banking infrastructure to facilitate financial inclusion.
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Cross River's lending partners
Cross River Bank is a financial services organization that combines the services of a bank with the innovation and offerings of a technology company. Its lending partners include Affirm, Rocketloans, and Upstart.
The bank's proprietary banking core, the Cross River Operating System (COS), was built in-house to meet the needs of its fintech banking partners. Cross River offers a comprehensive suite of products encompassing lending, payments, risk management, and Banking-as-a-Service (BaaS) offerings. It provides support to its third-party partners in all aspects of lending, including credit and underwriting, origination, payments, compliance, balance sheet capacity, and capital market capabilities.
Cross River has been an active participant in volunteer programs and charity events, partnering with organizations to support workshops, learning sessions, and grant programs. In 2019, the bank started the Cross River Financial Literacy Initiative in collaboration with New Jersey-area public schools and members of the New Jersey Legislature. In March 2020, the initiative partnered with Operation HOPE, Inc. to further promote financial literacy.
During the COVID-19 pandemic, Cross River pivoted to help small businesses through the U.S. Small Business Administration's (SBA) Paycheck Protection Program (PPP). The bank built an automated lending system to provide forgivable loans to small businesses, becoming the second-largest PPP lender in the country.
In 2023, Cross River partnered with Current, a U.S. fintech platform, to launch a new credit-building product. This partnership aims to provide access to building credit history for underserved communities, empowering individuals to improve their financial well-being through a secured charge card.
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The bank's technology infrastructure and proprietary systems
Cross River is a financial services organisation that combines the expertise of a bank with the innovation of a technology company. It provides technology infrastructure to fintech and tech companies. Cross River has been focused on incorporating technology to improve efficiency and synergy since its inception. Its proprietary banking core, the Cross River Operating System (COS), was built in-house to meet the needs of its fintech banking partners.
The company has continued to expand its technology and diversify its offerings, with a specific focus on payments solutions. It has developed an in-house mechanism that allows systems to process transaction-based payments via APIs, providing partners with a full suite of banking offerings via its proprietary, API-based core. This includes additional payment capabilities such as automated wires, push-to-card, and real-time payments.
Cross River's technology infrastructure enables it to provide embedded financial solutions, such as embedded payments, cards, lending, and cryptocurrency. The company is also able to facilitate lending across various industries, including debt consolidation, point of sale, home improvement, medical, and small businesses.
Cross River's nimble and agile approach has allowed it to adapt to regulatory requirements and market demands. During the COVID-19 pandemic, the company quickly pivoted to help small businesses through the U.S. Small Business Administration's (SBA) Paycheck Protection Program (PPP). Cross River built an automated lending system to provide forgivable loans to struggling small businesses, becoming the second-largest PPP lender in the country.
The company's technology infrastructure and proprietary systems have enabled it to shape the way banking services are provided, combining the trust and security of traditional banking with cutting-edge technology solutions. Cross River's ability to stay forward-looking has helped it meet the changing needs of its clients and partners.
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Cross River's regulatory and compliance standards
Cross River Bank is a New Jersey state-chartered FDIC-insured bank with a focus on traditional community banking activities, including taking deposits, making loans, and providing technology services. The bank has a strong commitment to regulatory and compliance standards, which are built into its technology infrastructure.
Regulatory and Compliance Standards
Cross River understands the complex and ever-shifting regulatory landscape and embraces regulatory requirements and technological advancements. The bank operates under a Compliance Framework that serves as a protective measure for its customers, employees, and shareholders. This framework is designed to meet the diverse needs of its fintech banking partners, offering a full suite of banking offerings through its proprietary, API-based core.
To ensure compliance, Cross River has developed its own banking core, the Cross River Operating System (COS), which allows it to improve efficiencies and scalability for its partners. This in-house system enables the processing of transaction-based payments via APIs, providing partners with a comprehensive range of banking services.
In May 2023, Cross River Bank entered into a consent order with the FDIC to address allegations of unsafe fair lending compliance practices. As a result, the bank was required to strengthen its lending and third-party compliance controls, increase supervision and oversight of internal controls, and improve its information systems and credit underwriting practices.
Cross River also maintains high standards of consumer protection and actively gives back to its community. The bank has partnered with local elected officials and community-based organizations to provide financial literacy services and support charitable initiatives. Additionally, Cross River has established Foundation@ Cross River to fund community development and educational projects, further demonstrating its commitment to social responsibility.
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Frequently asked questions
Cross River Bank is an American financial services organisation that provides technology infrastructure to fintech and technology companies.
Cross River Bank is affiliated with a number of companies and organisations. It has received investments from private equity and venture capital firms such as Battery Ventures, Andreessen Horowitz, Ribbit Capital, and KKR & Co. Inc. It has also partnered with companies like Current, Visa, and Stripe. Additionally, Cross River Bank maintains relationships with local elected officials and community-based organisations to provide charity and financial literacy services.
Cross River Bank was founded in 2008 by French-born entrepreneur Gilles Gade as a community bank. It entered into its first tech partnership in 2010 and has since grown and diversified its offerings, focusing on incorporating technology to improve efficiencies and synergies.
Cross River Bank offers a range of financial services, including embedded payments, cards, lending, and cryptocurrency. It also provides banking-as-a-service products, traditional banking services like deposits and accounts, and support in various aspects of lending such as credit, underwriting, origination, and payments.
Cross River Bank is committed to staying nimble, agile, and forward-looking, adapting to regulatory requirements and technological advancements. It aims to merge the trust, security, and legacy of traditional banking with cutting-edge technology solutions. Cross River Bank also has a strong focus on financial inclusion and giving back to the community through initiatives like the Cross River Financial Literacy Initiative and Foundation@ Cross River.
