Fintech Infrastructure Provider Increase Launches Increase Bank
The API-first provider transitions to a regulated financial institution following the acquisition of Twin City Bank to gain direct control over payment rails.
Fintech infrastructure provider Increase has launched Increase Bank, marking the company's transition from a middleware service to a regulated financial institution. The move follows the 2025 acquisition of Washington-based Twin City Bank.
Increase Bank is now an FDIC-member institution. By acquiring the charter, the company has secured direct connections to the Federal Reserve, The Clearing House, and Visa. This integration merges a regulated banking charter with Increase's existing API-first infrastructure, which currently provides banking services for high-growth companies including Stripe, Ramp, and Gusto.
The Shift to Direct Banking
Founded in 2020 by former Stripe executive Darragh Buckley, Increase began as a platform designed to bridge the gap between fintechs and sponsor banks. For years, the company operated as a layer of infrastructure that allowed technology firms to embed financial services into their products without managing the complexities of a banking license.
Rather than undergoing the lengthy and uncertain process of applying for a new de novo charter, Increase opted for the acquisition of Twin City Bank. This strategy allowed the company to bypass the regulatory waiting period and immediately assume the role of a regulated bank operator.
Implications for Embedded Finance
Owning a bank charter fundamentally changes the economics and operational capabilities for Increase. The company now gains total control over its product development, compliance frameworks, and payment operations, removing the dependency on third-party partner banks that often struggle to keep pace with rapid software iteration.
According to Darragh Buckley, the new entity is a "bank built by a team of product-obsessed operators for ambitious companies" that prioritize the customer experience. This shift allows Increase to capture a larger share of the embedded finance value chain while offering more reliable, programmable services to its clients. The ability for a fintech to scale is often limited by whether their banking partner can move at their pace and provide direct access to payment rails.
Future Outlook
As Increase Bank begins operations, the industry will be watching how the company balances the rigid requirements of federal banking regulation with the agility of a software-first culture. While the acquisition provides the necessary legal and technical rails, the company must now manage the ongoing oversight associated with an FDIC-member institution. It remains to be seen how this vertical integration will influence the broader trend of "fintech-to-bank" conversions as more infrastructure providers seek to eliminate the middleman.