Stripe’s Initial Employee, the Founder of Fintech Increase, Acquires a Bank

It is widely known in the fintech industry that Darragh Buckley, the founder and CEO of the startup Increase, has been striving to acquire a bank for quite some time. Recently, he has achieved this goal by purchasing a significant stake in Twin City Bank, which led to a public disclosure by the Federal Reserve Board. This community bank is located in Longview, Washington, and the acquisition required approval from the FDIC due to the stake being over 10%.

### Silicon Valley Finds a Banking Shortcut

Increase operates an API platform that enables programmable financial services, such as automated clearing house transactions and real-time payments. The company’s clients mainly consist of other fintechs like Ramp, Check, and Pipe. As Stripe’s first employee, Buckley is highly regarded in the engineering community and even receives referrals from competitors when they are unable to handle certain tasks.

### The Dangers of Fintech Partnerships

Despite the competitive nature of the BaaS market, Buckley has no intention of turning Twin City Bank into a partner bank for Increase. He recognizes the risks associated with such partnerships, as demonstrated by past incidents like the ransomware attack on Evolve Bank. Buckley believes in the value of community banks and their strengths in building relationships and local knowledge.

This investment in Twin City Bank reflects Buckley’s admiration for community banks and his belief in their potential for growth. While his competitors in the BaaS space may be keeping a close eye on his activities, Buckley has already obtained approval from the FDIC for the acquisition, signaling the deal’s successful completion.