Varo Breaks New Ground With FDIC Approval For National Bank Charter

Due to the regulatory environment in the US digital banking startups have opted to partner with banks to offer banking services; however there is a path for a digital bank to be a standalone bank through a national bank charter; Varo had plans to pursue this path from the very beginning and is now the first fintech to receive approval from the FDIC; from here they will still need to get final approval from the OCC and Federal Reserve; According to CEO and  co-founder Colin Walsh pursuing this route has cost the company $100 million; once approved Varo will no longer need their banking partner Bancorp Bank and will be able to themselves offer a full suite of banking products. Lend Academy

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