Stripe Veteran's Fintech Increase Acquires Community Bank

Increase, a banking infrastructure company founded by the first employee of payments giant Stripe, has acquired a community bank, according to a report from Finextra. The move marks a strategic shift for the fintech, which provides software for businesses to embed banking services, as it gains direct access to a bank charter.

Community bank acquisitions have become a popular route for fintechs seeking to reduce reliance on third-party banking partners. By owning a bank, Increase can offer services such as deposit accounts and lending under its own license, potentially speeding product development and lowering costs. The deal's financial terms were not disclosed.

The acquisition underscores the ongoing convergence of technology and traditional banking. Increase was co-founded by Kate Heiny, who was Stripe's first employee and later led product for its banking-as-a-service offering. The company has raised substantial venture funding to build infrastructure that enables companies to launch financial products quickly.

With its own bank, Increase joins a growing list of fintechs that have taken the ownership route. Industry observers say the move could help Increase compete with larger players by offering more customizable solutions. The acquisition is subject to regulatory approval and is expected to close later this year.