Stripe’s First Employee Buys Stake in a Bank: What It Means for Fintech
Darragh Buckley, the first-ever employee at Stripe and now the founder of the fintech startup Increase, has taken a major step that’s turning heads across the industry: he’s quietly acquired a significant stake in Twin City Bank. This move, which triggered mandatory disclosure from the Federal Reserve Board, has raised plenty of questions—and curiosity—about what it means for the future of banking-as-a-service. The focus keyword here is Stripe's first employee buys stake in a bank, and it's quickly becoming one of the most talked-about developments in financial technology. Is Buckley planning to transform Increase into a full-fledged bank? Or is this more about regulatory leverage and infrastructure access? Let’s break down the details and implications behind this calculated move.
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Why Stripe’s First Employee Buys Stake in a Bank
For years, fintech insiders have whispered about Darragh Buckley’s ambition to “buy a bank,” a strategy seen by many as a fast track to navigating banking regulations and infrastructure bottlenecks. That ambition has materialized with the purchase of more than 10% of Twin City Bank, a small community institution located in Longview, Washington. This threshold is critical because it requires public disclosure under Federal Reserve Board guidelines and eventual approval by the FDIC. Although Buckley hasn’t confirmed the exact size of his investment, it’s substantial enough to mark him as a major shareholder.
Many observers believe this acquisition is more than a financial maneuver—it’s a strategic play for Buckley’s company, Increase, which provides banking-as-a-service (BaaS) infrastructure to tech-forward clients. Acquiring a piece of a licensed bank could give Increase access to more control over compliance, payment rails, and product innovation without relying fully on third-party partners. For startups in the BaaS space, having bank ownership offers an edge, potentially reducing friction, lowering operational costs, and increasing trust with customers and regulators alike.
The Rise of Banking-as-a-Service and the Strategic Edge
The fintech landscape has been rapidly evolving, and banking-as-a-service platforms are at the center of this shift. Companies like Increase provide modern APIs that allow businesses to build financial features—like payments, virtual cards, and account management—without becoming banks themselves. But the catch? These startups still depend on traditional banks to hold deposits and enable core financial functions. This is where Buckley’s move to buy into Twin City Bank becomes so compelling.
By becoming a shareholder, Buckley can better integrate Increase’s technology stack with the bank’s operations, potentially streamlining regulatory compliance and accelerating feature rollouts. It’s a long-term strategy: one that prioritizes sustainability, resilience, and greater independence in an increasingly regulated environment. While Buckley insists that this isn’t about using the bank solely for Increase’s growth, his actions suggest otherwise—particularly given that this is his third such investment in a Washington community bank. Each acquisition may serve as a foundational building block for a future where Increase has direct influence over banking infrastructure.
Industry Backlash and Competitive Tensions in Fintech
Not everyone in fintech is celebrating Buckley’s success. Sources close to the matter say a rival player was so concerned about his bank acquisition that they hired a PR firm to spread negative stories about him. This suggests fierce competition in the BaaS sector, where control over banking relationships can determine the fate of an entire startup. While such tactics may seem extreme, they highlight just how high the stakes are when someone like Stripe’s first employee buys stake in a bank—it’s not just a business story; it’s a power play.
Despite the pushback, Buckley remains focused and unfazed. He has not only denied nefarious intentions but also positioned his move as a broader investment into community banking. Whether the industry buys that narrative remains to be seen, but there’s no denying that this acquisition strengthens Increase’s strategic position. With Stripe’s DNA and a solid understanding of what it takes to build scalable financial infrastructure, Buckley may be setting the stage for a new era in fintech where startups don’t just partner with banks—they own them.
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