Varo Bank

About Varo Bank

Varo Money: The American Neobank Reinventing Mobile Banking Varo Money (commonly referred to as Varo) is an American neobank that has established itself as a pioneer in the mobile banking sector in the United States. Founded in 2015, Varo made history by becoming, in 2020, the first consumer fintech to obtain a national bank charter from the Office of the Comptroller of the Currency (OCC) and FDIC insurance. This milestone transformed Varo from a simple financial technology application into a fully regulated national bank, offering an unprecedented level of trust and security for its customers. Available primarily through its mobile application, Varo provides fee-free banking services, a high-yield savings account, early direct deposit, and a range of innovative financial tools designed to help Americans better manage their money. The official Varo website is accessible at varomoney.com , and customer support is provided primarily via the in-app contact feature.

Table of Contents Background and history of Varo Varo offerings and pricing Varo features Additional services offered by Varo Security at Varo Varo customer service Customer reviews Comparison with Chime, Current, and Dave Case studies Expansion and future prospects

1. Background and history of Varo The story of Varo begins in 2015, when Colin Walsh, a former executive at Wells Fargo and American Express, founded the company with a clear vision: to create a bank that genuinely works for everyday Americans, free from the excessive fees and predatory practices of traditional financial institutions. This vision was born from a personal observation — millions of Americans were paying too much for basic banking services, trapped in a system that penalized those with the least. In its early years, Varo operated as a fintech application partnered with The Bancorp Bank, offering basic banking services without holding its own banking charter. This model, common among neobanks at the time, allowed Varo to launch quickly while developing its technology and building a customer base. However, Colin Walsh and his team always had the ambition to obtain their own banking license, which would give Varo greater autonomy, regulatory credibility, and the ability to offer a broader range of financial products. The process of obtaining a national bank charter was long and demanding. Varo submitted its application to the OCC in 2018, embarking on an 18-month regulatory review process that was among the most rigorous ever imposed on a fintech company. This process included exhaustive evaluations of Varo's business model, financial stability, risk management practices, technological infrastructure, and ability to comply with banking regulations. During this period, Varo also secured approval from the Federal Deposit Insurance Corporation (FDIC) for deposit insurance, an essential element for any bank seeking to attract consumer deposits. In September 2020, Varo officially received its national bank charter, becoming the first consumer fintech company to achieve this distinction. This milestone was widely covered by the media and hailed as a turning point for the fintech industry, demonstrating that digital-native companies could meet the same regulatory standards as traditional banks. With this charter, Varo became Varo Bank, N.A., a nationally chartered bank with direct FDIC insurance covering deposits up to $250,000 per depositor. The obtaining of the bank charter gave Varo a significant competitive advantage over other neobanks operating solely through banking partnerships. As a regulated bank, Varo has direct control over its products, services, and customer experience, without depending on a partner bank's policies or constraints. This independence also means that Varo is subject to stricter regulatory oversight, which strengthens consumer protection and institutional trust. Since obtaining its charter, Varo has continued to grow and innovate. The company has expanded its product offering, adding features such as Varo Advance (a cash advance service), Varo Believe (a credit-building credit card), and a high-yield savings account with one of the most competitive rates on the market. Varo has also invested in improving its mobile application and expanding its customer support capabilities. Varo's growth has been fueled by several rounds of funding from prominent investors, including Warburg Pincus, The Rise Fund (TPG), and Gallatin Point Capital. These investments have enabled Varo to finance its regulatory approval process, develop its technological infrastructure, and expand its marketing efforts to attract new customers. As of 2024, Varo serves several million