Founder of fintech Increase buys a bank in Washington state

Fintech infrastructure provider Increase has acquired a community bank in Washington state, a move that signals a major shift in how financial technology services are delivered to businesses. For retailers and service providers, this matters because it bridges the gap between modern software and old-school banking stability. Increase provides the 'plumbing' that many platforms use to handle payments and embedded finance features. By owning the bank outright rather than just partnering with one, Increase can offer more reliable services without the risk of a third-party bank suddenly changing its rules or shutting down accounts. This trend towards 'fintechs becoming banks' is a direct response to recent regulatory crackdowns on the banking-as-a-service (BaaS) sector. When fintechs rely on middleman banks, any regulatory trouble at the bank can freeze funds for the merchants using the software. By bringing the banking charter in-house, Increase aims to offer a smoother, more compliant experience for companies that want to integrate financial products directly into their customer platforms. For operators, this means the tools you use to manage money or offer customer terms are becoming more vertically integrated and potentially more secure against market volatility.

Source: Banking Dive

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