Axos to buy San Francisco fintech and its AI technology

https://www.americanbanker.com/news/axos-to-buy-san-francisco-fintech-and-its-ai-technology

Publish Date: 2026-07-07 18:23:00

Key takeaway: Buying Arc will give Axos access to thousands of early-stage and mid-market tech firms, as well as valuable AI technology the bank can use to sharpen its small business-product set.
Supporting data: The deal comes about three months after Capital One closed its $5 billion acquisition of Brex, which has an AI-native payments platform.
Expert quote: “Joining Axos enables us to pair our technology with direct banking infrastructure under one roof.” – Arc CEO Nick Lombardo

Axos Financial in Las Vegas said Tuesday that it plans to acquire Arc Technologies, whose AI-native financial technology platform provides cash management and debt capital markets services to early-stage and mid-market technology companies.

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The $29.2 billion-asset Axos believes it can build on the foundation five-year-old Arc laid to create “a differentiated digital banking solution for businesses across their full lifecycle,” CEO Greg Garrabrants said in a press release.

“Arc brings an exceptional team, a modern technology platform, and deep expertise serving the innovation ecosystem,” Garrabrants said. He touted the “combination of Arc’s product and software engineering capabilities with Axos’ diverse products and services, nationwide distribution, and capital resources.”

For Axos, the deal offers access to the thousands of tech firms Arc counts as clients. It also allows the bank to acquire sophisticated AI-driven technology, including the Archie CFO agent built into Arc’s cash-management service.

The move follows $682.9 billion-asset Capital One’s $5 billion acquisition of Brex and its AI-native payments platform, in a deal that closed in April. Brex also featured an agent that handles tasks traditionally managed by an institution’s back office.

Axos did not disclose the purchase price for San Francisco-based Arc. The buyer did not respond to an interview request by deadline Tuesday.

The deal, expected to close this month, comes about 10 months after Arc spun…

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