The Varo start-up launched in 2017, Varo offers various banking services aimed at younger customers comfy with doing all their money-related transactions online, without hassle to visit the physical branches. The Varo is an American mobile that is California based is finally becoming its own bank. The mobile banking company has recently announced on Friday that it has been granted all the permissions from the secured regulatory approvals from the FDIC, Office of the Comptroller of the Currency (OCC) and Federal Reserve to open Varo Bank, N.A.
The mobile banking app also has raised a series D funding of $241 million followed by this news. This amount will help Varo transition its service to its own bank. The company will expand its services and incorporate new banking products and hire more staff so that all the customers get services on time. The new staff help in managing operations, engineering, marketing, risk, and communications.
The California based banking start-up app Varo offers various banking services and aims to provide all the significant banking-related tasks online, without access to physical branches. The banking app competes with a diversity of mobile banking start-ups, including Current, Chime, Cleo, N26, Space, Level, Step, Moven, Empower Finance, and many others.
Varo Bank founder and CEO Colin Walsh, in a statement, said that -“This is a thrilling milestone for Varo, as the bank charter has been a core part of Varo’s disruptive vision from the very beginning,” “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. 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. We are excited to lead a new wave of financial inclusion by offering fair, transparent, intelligent, and comprehensive financial services to all,” he further added.
In addition to above, the Varo offers a range of services that makes it different from its competitors. The mobile banking app is used by people because there are no extra fee charges linked with Varo for accessing the bank account. With the help of Varo, you can access the money through a complex of over 55,000 fee-free All point ATMs globally. It will be the first mobile app that got permission from U.S. consumer fintech. There are various other competitors of Varo that are going to follow the same footsteps to get approval for their application to expand their services.
For now, the company is giving much relaxation to its customers due to the global pandemic situation. The company is planning to expand its services by offering before time access to stimulus deposits and increasing ATM limits to assist customers.