Axos Financial (NYSE: AX) has agreed to acquire Arc Technologies, a BANKTECH platform serving technology and growth companies through integrated cash management, capital markets access, and AI-powered financial software, pairing Arc’s modern software stack with Axos Bank’s $29.2 billion balance sheet and direct banking infrastructure under one roof. Founded in 2021 and backed by Y Combinator, Arc built its business converting startup future revenue into upfront non-dilutive capital, then layered on yield-bearing operating accounts, a debt capital markets marketplace, and financial analytics. The deal follows Capital One’s $5 billion acquisition of Brex in April and fits a broader pattern of chartered banks absorbing AI-native startups to deepen their technology layer and reach the millions of small businesses structurally underserved by traditional banking.

Axos Buys AI Fintech Arc Technologies to Bolt Modern Software Onto a Bank