Search Results for "Varo"
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Varo Bank Raises $123.9M Growth Round for Digital Banking Platform
Varo Bank, a US digital banking platform with its own bank charter, raised $123.9M in a growth round. The funding supports continued development of its consumer digital banking services. Varo is one of the few fintechs to hold a national bank charter, making this raise notable for the BaaS landscape.
Varo Bank Raises $510M Series E at $2.5B Valuation
Varo Bank, the first consumer fintech to receive a national bank charter in the US, raised $510 million in Series E funding at a $2.5 billion valuation. The round was led by Lone Pine Capital with participation from Warburg Pincus, The Rise Fund, Gallatin Point Capital, and others. Funds will support product and technology development as Varo scales its digital banking platform.
Varo Money Becomes First U.S. Consumer Fintech to Win National Bank Charter
Varo Money received full approval from the OCC, FDIC, and Federal Reserve on July 31, 2020, becoming the first consumer fintech in U.S. history to obtain a national bank charter. This allowed Varo to launch Varo Bank, N.A. on August 1, 2020, offering FDIC-insured banking services nationwide. The milestone marked a major shift in the competitive landscape between fintechs and traditional banks.
Varo Money Raises $241M Series D While Pursuing National Bank Charter
Varo Money raised $241 million in a Series D funding round on June 3, 2020, as it moved closer to becoming the first fully digital national bank in the US. The company had received preliminary approval from the OCC for a national bank charter. Full approval from the OCC, FDIC, and Federal Reserve was anticipated by summer 2020. The charter would enable Varo to offer credit cards, loans, and other banking products directly.
Chime Holds 60% of US Digital Banking Market Without Bank Charter
Chime commanded approximately 60% of the US digital banking market as of May 2020, operating entirely through bank partnerships rather than its own charter. This underscored the dominance of the BaaS partnership model for scaling consumer fintech. The report also noted the broader landscape of fintech charter challenges.
Varo Money Receives FDIC Deposit Insurance Approval Toward National Bank Charter
Varo Money received FDIC deposit insurance approval on February 12, 2020, advancing toward becoming a nationally chartered digital bank. Built on Temenos T24 cloud core, Varo offers features like early direct deposit and no-fee overdrafts. This milestone is significant for the BaaS landscape as it represents a fintech pursuing its own charter.
Fintechs Increasingly Partner With Small Banks Instead of Pursuing Charters
A Los Angeles Times investigation reported that fintech companies are increasingly teaming up with small-town banks rather than pursuing their own banking charters. Companies like Square and SoFi faced regulatory obstacles, with SoFi withdrawing its ILC application entirely. The trend underscored the growing importance of bank-fintech partnerships as the foundation of embedded finance.
Federal Court Blocks OCC Authority to Issue Fintech Bank Charters
A U.S. District Court in the Southern District of New York ruled that the OCC lacks authority under the National Bank Act to issue special purpose national bank charters to non-depository fintech companies. The ruling denied the OCC's motion to dismiss a lawsuit brought by the New York Department of Financial Services. This decision effectively stalled the OCC's fintech charter program, which had been open for applications since July 2018.
Varo Money Receives Conditional OCC Approval for National Bank Charter
Varo Money received conditional approval from the Office of the Comptroller of the Currency (OCC) for a national bank charter, making it one of the first mobile-only fintechs to reach this milestone. The approval positioned Varo to eventually become a full-service bank without relying on a partner bank for BaaS infrastructure. This was a landmark moment in the fintech-bank charter debate amid ongoing legal challenges to the OCC's authority to grant such charters.
Varo Money Wins Preliminary Approval for US National Bank Charter
Varo Money received preliminary approval for a national bank charter, becoming one of the first US consumer fintech startups to pursue a full banking license. The company had raised $79 million in funding to support its transition. This milestone had major implications for the BaaS industry as it signaled fintechs could operate independently of partner banks.
Varo Money Closes $45M Series B to Pursue National Bank Charter
Varo Money announced a $45M Series B financing round, publicly disclosed on January 18, 2018. The mobile banking fintech had applied for a national bank charter from the OCC and FDIC in July 2017, aiming to become the first U.S. national bank designed for smartphones. The funding was intended to support its charter application process and product expansion.