Leader appointed as new CEO at Evolve Bank, boasting extensive experience in regulatory matters.
Bob Hartheimer has been appointed as the new CEO of Evolve Bank & Trust, effective immediately. The appointment comes at a critical time for the bank, which is currently undergoing a significant regulatory rebuilding phase following enforcement actions related to its third-party partnerships and operational challenges.
Hartheimer's extensive experience in guiding financial institutions through periods of regulatory scrutiny and consent order compliance makes him an ideal choice for the role. He has a background in restoring trust with regulators and focusing on transparency, stability, and rebuilding regulatory relationships.
The board of Evolve Bank & Trust emphasised this appointment as a structural change aimed at "earning back the trust of customers, employees, regulators, and investors." Hartheimer has been working with Evolve as a consultant since 2024 and has been focusing on cooperating fully with regulators and addressing all areas noted in the bank’s consent order.
Under Hartheimer's leadership, Evolve is confronting its compliance and regulatory challenges head-on. The bank is in the process of repairing its open banking business and aims for a "very strong business" outcome once the regulatory issues are addressed. While specific details about the resolution of enforcement actions are not disclosed, it is clear that proactive steps are being taken to comply with enforcement requirements and to restore the bank’s regulatory standing.
Former Deputy Treasury Secretary Sarah Bloom Raskin expects Evolve to "see improvement under his tenure" due to Hartheimer's experience. Evolve's board chair, Steve Valentine, shares Raskin's optimism, expecting Hartheimer to take decisive action, restore thoughtful innovation, and lead Evolve into a future defined by transparency and sustainable growth.
Hartheimer joins Evolve from financial regulatory consulting firm Klaros Group. He has previously served as a bank and fintech regulatory consultant from 2002 until 2008, at Promontory Financial Group and on his own. He also co-founded and served as chief regulatory and compliance officer at Jasper, a credit card originator.
Evolve's past few years have been rocky, with several fintechs it partnered with becoming unable to connect users to funds deposited in Evolve. Millions of dollars in user funds remain unaccounted for due to the bankruptcy of middleware firm Synapse, which sat between Evolve and the fintechs.
Despite these challenges, Hartheimer is aiming to grow Evolve Bank & Trust into something stronger and more resilient. He cites PNC as an example of a bank that faced regulatory scrutiny and is now a successful bank. Hartheimer shares that banks which had CEOs, CFOs, or heads of risk who understood and fixed issues did well.
Evolve CFO Mark Mosteller, President of Open Banking Hank Word, and General Counsel and Corporate Secretary Joelle Weltzin will report to Bob Hartheimer. As Hartheimer takes the helm, the focus remains on addressing regulatory issues, strengthening compliance, and restoring trust with regulators and stakeholders.
In a related development, the Consumer Financial Protection Bureau is preparing to file an adversary proceeding complaint against Synapse, alleging unfair acts or practices and failure to maintain adequate records of consumer funds. This highlights the ongoing concerns in the banking industry regarding reputational risk and third-party partnerships.
As Hartheimer leads Evolve through this critical period, the bank's future seems to be defined by transparency, regulatory compliance, and a commitment to restoring trust. Only time will tell if these efforts will yield the desired results.
[References] 1. Evolve Bank & Trust appoints Bob Hartheimer as CEO to address regulatory issues 2. Bob Hartheimer's Focus at Evolve Bank & Trust: Building Trust with Regulators and Addressing Consent Order Issues 3. Regulatory Scrutiny of Reputational Risk and Third-Party Partnerships in the Banking Industry
- Bob Hartheimer, with his expertise in fintech and finance, will focus on rebuilding Evolve Bank & Trust's regulatory relationships and addressing the consent order issues, aiming to lead the bank into a future defined by transparency and sustainable growth.
- As the new CEO of Evolve Bank & Trust, Hartheimer's primary goal is to confront the bank's compliance and regulatory challenges head-on, aiming to grow the bank into something stronger and more resilient, citing banks like PNC as examples of successful financial institutions that faced regulatory scrutiny and rebounded.
