Question 1

What is Varo Bank?

Accepted Answer

Varo Bank is a pioneering digital-only neobank headquartered in Draper, Utah. The institution made history in 2020 as the first fintech company to receive a national bank charter from the Office of the Comptroller of the Currency (OCC), transitioning from a technology startup to a fully chartered, FDIC-insured national bank.

Unlike traditional money apps that partner with third-party banks, Varo operates with its own banking charter and holds customer deposits directly. The bank specializes in serving lower-to-middle income consumers, financial beginners, and those with limited or no credit history, offering fee-free banking products designed to promote financial inclusion and stability.

Question 2

When was Varo Bank founded?

Accepted Answer

Varo Bank's parent company, Varo Money, was founded in 2015 by Colin Walsh in San Francisco, California. Walsh, a veteran banker with experience at Wells Fargo, American Express, GE Capital, and Lloyds Banking Group, initially raised $27 million from private equity firm Warburg Pincus to develop a mobile banking platform.

The Varo app launched in 2017 in partnership with The Bancorp Bank, which initially held customer accounts. Almost immediately after launch, Walsh began the three-year process of seeking a national bank charter. In February 2020, the FDIC granted approval for federal deposit insurance, followed by the OCC granting the national bank charter in July 2020. This made Varo the first fintech to achieve this milestone in the United States. Following the charter grant, Varo purchased its two million customer accounts from Bancorp Bank and began operating as an independent national bank.

Question 3

Where is Varo Bank headquartered?

Accepted Answer

Varo Bank is headquartered in Draper, Utah, located in Salt Lake County within the Salt Lake City metropolitan area. The bank relocated its headquarters from San Francisco to Utah in 2020, coinciding with its transition to a chartered national bank.

As a digital-only institution, Varo operates without physical branch locations, conducting all banking operations through its mobile app and website platforms.

Question 4

Where does Varo Bank operate?

Accepted Answer

Varo Bank operates nationwide across all 50 states as a digital-only national bank. The institution serves customers entirely through its mobile banking app and online platforms, eliminating the need for physical branches.

For cash transactions, Varo provides access to over 40,000 fee-free ATMs through the Allpoint network nationwide—more than twice the number offered by many individual large traditional banks. Additionally, customers can deposit cash for free at over 7,500 CVS drugstore locations through a partnership with the Green Dot network.

Question 5

What services does Varo Bank offer?

Accepted Answer

Varo Bank offers a comprehensive suite of digital banking products focused on accessibility and financial wellness. Core services include a free checking account (bank account) with no monthly fees, minimum balance requirements, or overdraft charges, plus early direct deposit access up to two days before traditional banks.

The bank's high-yield savings account offers up to 5.00% APY on balances up to $5,000 (with qualifying direct deposits and positive balance), and 2.50% APY on all other balances. Automated savings tools include "Save Your Pay" for automatic paycheck transfers and "Save Your Change" for rounding up purchases.

Credit-building products include the Varo Believe Visa Credit Card, a secured credit card requiring no credit check or annual fee, with customers averaging a 40-point credit score increase after three months of on-time payments. For short-term cash needs, Varo Advance provides up to $500 with flat fees and no interest, while a line of credit offers up to $2,000 with no subscription or hidden fees.

Additional features include automatic cashback earning up to 6% at over 10,000 merchants, Zelle integration for peer-to-peer payments, free tax filing through Column Tax, mobile check deposit, and real-time spending insights. The mobile app is available on iOS and Android platforms.

Question 6

What makes Varo Bank unique?

Accepted Answer

Varo Bank's most distinctive feature is its status as the first and only consumer fintech to obtain a de novo national bank charter in the United States. This achievement, which required over three years and approximately $100 million in legal and regulatory expenses, plus over 5,000 pages of application materials, provides Varo complete control over product development, regulatory compliance, and customer experience without relying on sponsor banks.

The charter enables Varo to offer a unique value proposition: combining sophisticated fintech features with the trust and security of a nationally chartered, FDIC-insured bank. This allows the institution to provide higher savings rates, lower-cost lending products, and faster product innovation than competitors using banking-as-a-service models.

Varo's mission focuses explicitly on financial inclusion for Americans living paycheck to paycheck, with products designed to eliminate exploitative fees common at traditional banks. The bank's fee-free structure, credit-building tools, and small-dollar lending programs demonstrate this commitment. Notable investors include Warburg Pincus, The Rise Fund, Lone Pine Capital, and celebrity investors Russell Westbrook and Chad Brownstein.

Question 7

What type of financial institution is Varo Bank?

Accepted Answer

Varo Bank is a National Bank chartered by the Office of the Comptroller of the Currency (OCC) and regulated as a full-service depository institution. As a neobank—a digital-only bank with no physical branches—Varo represents the modern evolution of banking, operating entirely through mobile and web platforms.

The institution holds its own national bank charter (CERT 59190) and provides direct FDIC insurance up to $250,000 per depositor, distinguishing it from most fintech companies that rely on partner banks. This regulatory status subjects Varo to the same comprehensive oversight, capital requirements, and safety and soundness examinations as traditional banks, while enabling it to offer the full spectrum of banking products including deposits, lending, and payment services directly to consumers.

Varo Bank

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About Varo Bank in the United States