Darragh Buckley, who was one of the first employees at payments giant Stripe, is now moving his fintech startup Increase into full-fledged banking. Buckley has often noted that he understands the difficulties fintech companies encounter when dealing with banks, due to the complex infrastructure required to launch financial products.
Buckley initially acquired a voting stake in Twin City Bank the previous year, and subsequently finalized the full purchase, renaming it Increase Bank. He now intends to leverage this bank charter to grow his company's services for fintech customers. By acquiring this community bank located in Longview, Washington - roughly halfway between Seattle and Portland - Buckley is pushing Increase into a market where Lead Bank and Column already operate, offering fintechs the essential banking infrastructure they need. Buckley intends to maintain the brick-and-mortar branch in Longview and continue its traditional community lending activities.
Increase, founded by Buckley in 2020, started out by providing a software layer that connected banks with fintech companies like Stripe and Ramp, handling tasks such as guaranteeing that workers receive their wages precisely on schedule. However, Buckley decided to push the company further by eliminating the dependency on external banking partners for regulated functions.
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"It's time for us to tie those things more tightly together," he said.
This acquisition reflects a growing trend among technology companies to acquire community bank charters, allowing them to operate with greater independence and reduced compliance overhead. For Increase, owning the bank means it can offer end-to-end payment processing and account management without relying on third-party partners, a model that has proven successful for rivals like Lead Bank.
Increase Bank, with Jon Jones serving as CEO, aims to deliver a banking infrastructure that is inherently digital and more modern for its customers.
"I built it to be the banking technology that I wanted while building Stripe," Buckley said in an interview.
This staged approach allowed his team to work closely with the bank's existing management and ensure a smooth transition to a technology-first banking model. The move mirrors a broader industry trend where fintechs buy small community banks to gain direct access to the payments system and reduce reliance on third-party banking partners.
By owning its own bank, Increase can offer clients a seamless integration of tech and regulated banking without intermediaries. Buckley's deep experience at Stripe - where he helped build core payments infrastructure - gives him a clear understanding of what fintechs need from their banking partners.
Increase now competes directly with companies like Lead Bank and Column, providing a banking platform that combines technology with regulated banking in a single offering.
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