SAN FRANCISCO–Varo, which operates under the consumer brand Varo Money, has become the first U.S.-based consumer fintech to be granted a national bank charter, meaning it will be able to offer a suite of FDIC-insured services.
Varo was granted the charter by the Office of the Comptroller of the Currency and has regulatory approvals from the FDIC and Federal Reserve to open Varo Bank N.A.
Varo, co-founded by former Wells Fargo executive Colin Walsh, closed a $241 million funding round in June and currently provides a range of savings, loans and other services through a relationship with The Bancorp Bank.
With the national charter now in hand, Varo Bank said it will expand its services to target a broader set of consumer needs, including access to credit, and additional savings products.
"2020 has been challenging for many of us across the country and has highlighted, once again, how the traditional financial system is not meeting the needs of hardworking, everyday Americans,” said Walsh. “The ability to operate as a full-service national bank gives Varo more freedom to deliver the kind of innovation and allyship that many Americans have never had from their bank before."
‘A New Generation’
Added Brian Brooks, Acting Comptroller for the Currency, "Granting a national bank charter to Varo marks an evolution in banking and a new generation of banks, born from innovation and built on technology intended to empower consumers and businesses."
Several other fintechs are also pursuing bank charters, including Square and SoFi.