Darragh Buckley, founder and CEO of the fintech company Increase, has acquired a community bank in Washington state to obtain a banking charter.

The move allows Increase to integrate its technology platform directly with a regulated financial institution. By removing the need for third-party Banking-as-a-Service (BaaS) middleware, the company aims to reduce operational risk and increase control over its financial infrastructure.

Buckley, a former Stripe employee, said the acquisition occurred July 29 [2]. The transaction transforms the fintech entity into Increase Bank, granting it the legal authority to accept deposits and lend money directly. This transition addresses a critical vulnerability in the fintech ecosystem where companies traditionally rely on partner banks to access the federal payment system.

Industry analysts said this strategy avoids the middleware layers that contributed to previous failures in the BaaS sector. By owning the charter, Increase Bank can bypass the intermediaries that often create transparency and compliance gaps between tech platforms and regulatory bodies.

Increase was founded six years ago [1]. The company has spent that time building a platform designed to help businesses manage their money, but the acquisition of a physical bank in Washington marks a shift from being a software provider to becoming a licensed financial institution.

The acquisition follows a broader trend of fintech firms seeking more direct control over their regulatory destiny. Obtaining a charter is a complex process that typically involves rigorous auditing and capital requirements, making the purchase of an existing community bank a faster route to market entry.

“Darragh Buckley has acquired a community bank in Washington state to obtain a banking charter.”

This acquisition represents a strategic shift toward vertical integration in the fintech industry. By eliminating BaaS middleware, Increase Bank is attempting to solve the stability and compliance issues that have plagued the 'fintech-partner bank' model. This move suggests that the future of high-growth fintech may rely less on partnering with traditional banks and more on owning the underlying regulatory infrastructure to ensure long-term viability.