Varo Money applies for national bank charter
Written by Anthony Strzalek
US mobile banking startup Varo Money has 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.
Varo Money helps customers solve financial problems, manage money and reach financial goals. The startup seeks to be the first national bank in US history designed specifically for people who want to bank on their smartphones.
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.
With a national bank charter, Varo will be able to offer its customers access to a full range of products and solutions with the highest standards of consumer protection.
Colin Walsh, co-founder and CEO of Varo Money, said: “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.
“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.”
David Coulter, former Vice Chairman of JPMorgan Chase, added: “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.”