Axos Financial has agreed to acquire Arc Technologies, an AI-native financial technology platform serving technology and growth companies, in a move aimed at expanding the bank’s digital banking capabilities and strengthening its position in commercial financial services.

Financial terms of the transaction were not disclosed.

The acquisition will bring Arc’s cash management, capital markets and AI-powered software platform under the Axos umbrella. The companies said the combination will accelerate Axos’ digital strategy by pairing Arc’s technology with the bank’s balance sheet and banking infrastructure, according to Axos’ June 7 release.

The deal is expected to close this month, subject to customary closing conditions.

Founded in 2021, San Francisco-based Arc provides financial software and banking tools tailored to technology startups and growth-stage companies. Its platform combines cash management, financing and treasury capabilities with artificial intelligence designed to help finance teams manage liquidity and capital more efficiently.

Greg Garrabrants, president and chief executive of Axos Financial, said Arc’s technology and customer base will help the company build a more comprehensive digital banking platform for businesses as they grow.

“Arc has built an exceptional AI-native platform that aligns with our vision of delivering innovative financial solutions through technology,” Garrabrants said in a statement.

Arc CEO Nick Lombardo said joining Axos will allow the company to combine its software with a regulated banking platform while continuing to develop products for business customers.

The transaction reflects a broader trend of banks acquiring AI-focused fintech firms to enhance digital capabilities rather than building those technologies internally. For Axos, the acquisition also provides access to thousands of technology companies already using Arc’s platform, expanding the lender’s commercial banking reach while adding AI-powered financial tools to its product portfolio.

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