Fintech firm Increase gains banking license through Twin City acquisition
Fintech infrastructure provider Increase has made a significant move to redefine financial operations by acquiring Twin City Bank, a bank based in Washington State. This acquisition turns Increase from a backend service into a fully licensed bank, removing the need for traditional middleware that connects modern fintech platforms with outdated banking systems. The change allows Increase to offer direct access to settlement networks such as FedNow and ACH, cutting down on delays and reconciliation errors that often arise in multi-layered systems.
Darragh Buckley, Increase’s founder and a former executive at Stripe, began accumulating shares in the company last year. Since its launch in 2020, Increase has supported platforms like Ramp and Stripe, processing hundreds of billions in transactions. With control over both the banking charter and core infrastructure, Increase can now provide developers with real-time access to financial ledgers and transactions, eliminating inefficiencies caused by asynchronous processing and third-party integrations.
Traditional fintech setups depend on middleware to connect APIs with legacy banking software, creating operational friction. These middlemen introduce delays, expand vulnerabilities, and complicate compliance. Increase’s vertical integration eliminates these layers, allowing for seamless, real-time transaction handling. This approach also reduces the risk of balance mismatches and fraud by embedding monitoring directly into the API layer.
Financial firms will benefit from fewer vendors to manage and enhanced security. Legacy systems often process fraud checks in batches, leaving openings for unauthorized activity. Increase’s model shifts fraud detection to real-time, blocking threats before transactions settle. Additionally, compliance responsibilities now fall under a single banking charter, simplifying audits and regulatory oversight.
This acquisition aligns with a growing trend in fintech, where infrastructure providers seek bank licenses to streamline operations. Companies like Stripe and Ramp, which already rely on Increase’s services, may now experience faster and more transparent financial processing. The shift could accelerate the adoption of real-time payment systems, particularly in markets where regulatory fragmentation has historically hindered progress.
This integration enables optimization for speed, security, and compliance in ways traditional banks cannot match. Developers and security teams gain greater control over financial operations, reducing reliance on workarounds and third-party dependencies.
