Future Finance
Varo Becomes First Consumer Fintech to Land a National Charter
- CEO calls it ‘a very exciting moment’ in the banking industry
- Fintechs’ entry into the system has met with push-back
Varo app
Source: VaroThis article is for subscribers only.
Varo Money Inc. Chief Executive Officer Colin Walsh encountered skepticism when his technology startup set out five years ago to become a full-service digital bank. “Yeah, right, good luck with that,” he recalled a future partner saying.
Now Varo is the first consumer fintech to receive a new national bank charter from the U.S. government -- joining only a handful of recipients since the 2008 financial crisis. The feat, announced by the San Francisco-based firm Friday, lets the company offer a full range of services backed by the Federal Deposit Insurance Corp.