Stripe’s First Employee Buys a Bank, Totally Not for His Fintech Startup, Wink Wink

Darragh Buckley, the founder of banking-as-a-service startup Increase and Stripe’s first employee, quietly acquired a significant stake in Twin City Bank in Longview, Washington.

The transaction, disclosed by the Federal Reserve, surpassed the 10% threshold that triggers regulatory scrutiny, although Buckley refused to confirm the exact figure.

Despite the obvious optics, Buckley insists the move has nothing to do with Increase, which partners with regulated banks to power services for fintech clients like Ramp and Pipe.

Twin City Bank is reportedly Buckley’s third investment in a Washington-based community bank, all part of his claimed devotion to the underdog world of small-town banking.

His surprise acquisition prompted such concern among competitors that an unnamed rival even tried to torpedo the deal by peddling hit pieces to the media.

While Increase continues working with Grasshopper Bank and First Internet Bank of Indiana, some in fintech are ditching partnerships entirely by snapping up community banks themselves — a trend made popular by Plaid co-founder William Hockey and others.

Buckley’s move, however, is totally not that, according to Buckley, who swears Increase will not use Twin City for sponsor banking or even as a primary partner.

Citing cautionary tales like the ransomware-riddled Evolve Bank and the imploded Synapse, Buckley said such partnerships are fraught with risk and not suited for traditional community banks.

He claims the purchase was motivated purely by a deep respect for the grassroots grit of community lenders, which he believes can thrive without fintech sugar daddies.

Despite the theater, Buckley has already secured FDIC’s “non-objection for control,” meaning his fintech nemeses will just have to stew in their envy — or start shopping for banks themselves.