Fintech firm Increase gains full banking license through Twin City

Increase has completed the purchase of Twin City Bank in Washington State, allowing the fintech firm to operate as a fully licensed bank. This acquisition removes the need for middleware, a common bottleneck in fintech infrastructure that connects modern applications with legacy banking systems. The change directly addresses inefficiencies created by outdated frameworks that were not designed for real-time, API-driven workflows.

The company was established in 2020 by Darragh Buckley, a former executive at Stripe, and has already facilitated financial transactions worth hundreds of billions of dollars for clients such as Ramp and Stripe. Its platform was specifically engineered to resolve the mismatch between contemporary software architectures and traditional banking infrastructure. By acquiring Twin City Bank, Increase has eliminated the need for intermediaries, integrating banking operations seamlessly into its own technology stack.

This approach introduces three major vulnerabilities: delays from asynchronous processing, increased security risks due to third-party dependencies, and fragmented compliance responsibilities spread across multiple vendors. Increase’s new model eliminates these challenges by providing a unified system where developers interact directly with banking functions—removing intermediaries, reducing reconciliation delays, and consolidating security under a single framework.

Real-time banking meets API-driven efficiency

For financial engineers, this transition enables faster transaction execution, stronger security protocols, and streamlined compliance reporting. Fraud detection can now operate at the API level before transactions settle, while audit trails remain centralized under one regulatory charter. The shift also minimizes third-party risk assessments, as all banking and technical operations are managed internally.

In practical terms, fintechs will no longer need to assemble separate systems for different functions. A single API request can now trigger both a payment and a corresponding ledger update, eliminating the risk of data inconsistencies between layers. Regulators benefit from clearer visibility, as all transactions flow through a single, auditable system rather than a chain of third-party connectors. The architecture also aligns with real-time payment networks like FedNow, which require direct, low-latency connections.

This development directly advantages Increase’s current clients while establishing a new standard for fintech infrastructure providers. The industry may see a broader push toward vertical integration, where banking licenses and software development are combined to reduce operational complexity. For companies subject to US or UK regulations, infrastructure capabilities will increasingly determine competitive positioning alongside user experience. The reliance on middleware as an unavoidable component of fintech operations may soon become obsolete.

End-to-end fintech: Compliance and speed unified

With full regulatory control, Increase can now deliver an end-to-end solution, from API development to compliance, without external banking partnerships. The outcome is a system optimized for speed, security, and scalability, purpose-built for the digital economy.

The integration of banking and software functions also simplifies onboarding for fintech clients. Increase’s unified approach reduces the complexity of compliance, as all transactions and records are governed by a single banking charter. This consolidation aligns with regulatory expectations for transparency and reduces the administrative burden on fintech firms.

The acquisition also strengthens Increase’s ability to support high-volume transaction processing. Legacy systems often struggle with real-time demands, leading to delays and errors. The new structure ensures that payments and ledger updates occur simultaneously, reducing the risk of discrepancies. This capability is particularly valuable for businesses relying on instant settlements, such as e-commerce platforms or digital payment processors.