PRESS RELEASE:
Varo Bank, N.A. pursues mission to begin new era of financial services innovation, making it easier and more affordable than ever before for consumers to manage their money
SAN FRANCISCO–(BUSINESS WIRE)–July 25, 2017–
Varo Money, Inc., a mobile banking startup helping customers solve financial problems, manage money and reach financial goals, today announced that its leaders have applied to the Office of the Comptroller of the Currency (OCC) for a national bank charter and to the Federal Deposit Insurance Corporation (FDIC) for federal deposit insurance to form Varo Bank, N.A.
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Varo Money Applies for National Bank Charter, Aims to be First National Bank Designed for Smartphone Users (Photo: Business Wire)
Varo Bank, N.A. seeks to be the first national bank in American history designed for people who want to bank on their smartphones.
“We founded Varo because we believe many people could benefit from an easier, more affordable way to manage their money and reach their financial goals with just a few taps on their mobile phone,” said Colin Walsh, co-founder and CEO of Varo Money. “To do this, we got customers involved in an iterative process from the beginning. We wanted to offer more than just checking, savings and lending products-we wanted to help our customers solve financial problems, fix the fundamentals, and guide them toward a better financial future. As a national bank, Varo will be able to help Americans nationwide.”
21st Century Bank for 21st Century People
Varo recognizes that the smartphone is the indispensable toolbox that can transform the way that people manage their finances.
Last month, Varo Money launched in the Apple App Store through a partnership with The Bancorp Bank. The Varo app allows customers to manage cash-flow, track spending and see all their accounts, while also handling everyday banking.
Varo’s consumer research has shown that when it comes to managing money, most Americans don’t keep detailed budgets or go into a bank branch for guidance. Most people take a “hands-off” approach and check their bank balances a few times a week, with a general sense of how much they can spend each month.
Consumers who get their cash-flow projections wrong can face costly fees, expensive debt and stress. Varo is working to solve this problem by creating a cash-flow dashboard that provides alerts, information and recommendations to help customers avoid falling into a “cash-trap”.
Americans’ Trusted Financial Guide
Varo is building integrated, personalized financial solutions that combine budgeting, deposit and payments, savings and lending products to help customers smooth cash-flow and build savings. Varo is removing the friction surrounding leading a more financially healthy life and providing customers with the tools to get ahead. Varo’s digital model helps eliminate the unfriendly fees that big banks often charge, such as overdraft fees, minimum balance fees and foreign transaction fees. In addition, Varo does not charge ATM fees at a network of over 55,000 Allpoint ATMs worldwide.
With a national bank charter, Varo will be able to deliver on its promise nationwide, offering its customers access to a full range of products and solutions and the highest standards of consumer protection.
“The organizers of Varo Bank, N.A. bring an enormous depth of knowledge in financial services and consumer technology to their endeavor,” said David Coulter, former Vice Chairman of JPMorgan Chase & Co. and former CEO and Chairman of Bank of America Corporation. “Acquiring a national bank charter and federal deposit insurance is difficult and it takes time, but Varo is poised for success and backed by leading investors with a financial commitment to creating the bank of the future. If they succeed, they will truly be in a position to make banking better.”
About Varo Money
Varo Money, Inc. (“Varo”), is for responsible Americans who are hands-off with their money and want a bank that’s going to work for them. Varo is building a banking app that helps customers cover their expenses, pay their bills, and build their wealth over time-so they can stop worrying about their money and get on with living their lives. Unlike traditional banks or fintech apps, Varo is building an all-in-one solution with frictionless, integrated and automated budgeting, deposit, savings and lending products that help customers solve everyday money problems and achieve better financial outcomes. In May 2016, Varo announced a $28 million funding round led by Warburg Pincus, a global private equity firm focused on growth investing. Bank accounts for Varo Money are provided by The Bancorp Bank, Member FDIC. For more information, please visit varomoney.com and follow us on Twitter @varomoney.
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for Varo Money
Alessandra Nagy, 714-310-4439
alessandra@bospar.com