Varo Money

Varo is an American mobile only neobank based in San Francisco, California. The company provides financial services through its mobile app and currently has 1 million customers.[1]

Varo
Private
IndustryFinancial Services
Founded2015 (2015)
FoundersColin Walsh
Kolya Klymenko
HeadquartersSan Francisco, California, United States
ProductsChecking accounts, savings accounts, debit cards, peer to peer payments, fee-free overdraft
Websitewww.varomoney.com

History

Varo was funded by Colin Walsh and Kolya Klymenko as a way to create a bank that would attract millennials and younger people who were disillusioned with traditional banks. This is part of the reason why the bank only operates through an app and not the website. This is to make sure the app experience works well since it's the main way that people access it's banking services.[2] Like most neobanks, Varo operates a partnership with the Bancorp Bank who helps supply the backbone for their banking accounts.[3]

As of 2020, Varo is one of the three largest neobanks in the United States just behind Chime and Simple. Unlike most of the online banks, Varo applied for a banking license in 2016 in order to become a full fledged bank and operate independently and is set to become one by 2020.[4][5] In April 2020, after the collapse of Moven, its customers were directed to transfer their accounts to Varo as Moven had decided to retreat from the retail banking services and switch to selling its technology services instead.[6]

Overview

Like most online banks, Varo provides no fee checking and savings accounts as well as no overdraft fees. It also provides tools to help budget and keep track of spending as well as free ATM withdrawals through its Allpoint partnership.

See also

References
  1. https://bankinnovation.net/allposts/operations/comp-reg/varo-crosses-1-million-customers-with-plans-to-become-a-bank-by-2020/
  2. https://www.varomoney.com/varo-news/creating-a-customer-service-experience-thats-actually-about-the-customer/
  3. https://www.thebancorp.com/about/news/2016/092/varo/
  4. https://techcrunch.com/2017/07/25/varo-money-applies-for-bank-charter/
  5. https://www.cnbc.com/2020/02/11/start-up-bank-varo-gets-approval-to-become-a-full-scale-bank.html
  6. https://www.finextra.com/newsarticle/35641/moven-customers-to-transition-to-varo
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