Varo Bank, N.A. Applies for a National Bank Charter – Press Release

SAN FRANCISCO–(Business Wire)–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.

This Smart News Release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20170725005537/en/

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.

for Varo Money
Alessandra Nagy, 714-310-4439
alessandra@bospar.com

Leave a Reply

Your email address will not be published. Required fields are marked *

*

17 + nine =