Increase, a banking infrastructure provider founded in 2020, has announced its transformation into Increase Bank, a federally insured institution designed to cater specifically to the needs of FinTech companies. This strategic pivot aims to enhance the speed, precision, and control with which these companies can develop financial products. With an established banking core linked to the Federal Reserve, The Clearing House, and Visa, Increase Bank offers a robust suite of services that includes real-time transaction reconciliation and account management, vital for FinTechs handling substantial financial flows. The company has already facilitated the movement of hundreds of billions of dollars for notable clients like Gusto, Ramp, and Stripe, underscoring its capability to support high-volume operations.
The concept for Increase was inspired by the founder Darragh Buckley’s experiences at Stripe, where he recognized the critical need for a banking infrastructure that could match the engineering sophistication of the FinTechs it serves. As the FinTech sector continues to expand—projected to generate over $650 billion in revenue by 2025—Increase Bank's launch is timely, addressing a growing demand for agile banking solutions that can keep pace with innovation in financial services. Diede van Lamoen, an advisor and former Stripe executive, emphasized that a FinTech's growth often hinges on its banking partner's ability to adapt and provide tailored solutions, a challenge that Increase Bank is well-equipped to meet.
This development comes at a time when FinTechs are increasingly encroaching on traditional banking territory, particularly in cross-border payments, where small to medium-sized businesses are showing a marked preference for FinTech solutions. According to a recent study, 36% of U.S. SMBs engaged in international transactions expect to utilize FinTechs for cross-border payments by 2026, up from 30% last year. This trend highlights the shifting landscape of financial service provision and the growing acceptance of FinTechs as viable alternatives to established banks.
The concept for Increase was inspired by the founder Darragh Buckley’s experiences at Stripe, where he recognized the critical need for a banking infrastructure that could match the engineering sophistication of the FinTechs it serves. As the FinTech sector continues to expand—projected to generate over $650 billion in revenue by 2025—Increase Bank's launch is timely, addressing a growing demand for agile banking solutions that can keep pace with innovation in financial services. Diede van Lamoen, an advisor and former Stripe executive, emphasized that a FinTech's growth often hinges on its banking partner's ability to adapt and provide tailored solutions, a challenge that Increase Bank is well-equipped to meet.
This development comes at a time when FinTechs are increasingly encroaching on traditional banking territory, particularly in cross-border payments, where small to medium-sized businesses are showing a marked preference for FinTech solutions. According to a recent study, 36% of U.S. SMBs engaged in international transactions expect to utilize FinTechs for cross-border payments by 2026, up from 30% last year. This trend highlights the shifting landscape of financial service provision and the growing acceptance of FinTechs as viable alternatives to established banks.
Source: PYMNTS
