Varo Money, a mobile bank, formally announced the closure of a $241-million Series D funding round, led by Gallatin Point Capital, The Rise Fund, HarbourVest and Progressive Insurance.
What Does It Mean?
The funding will help Varo become the first and only fully digital bank to receive a national charter, according to the company.
“The COVID-19 pandemic and the subsequent economic impact have hit the fast forward button on consumer-driven transformation across many industries. Trends we did not expect to see for ten years are happening now. More than ever, consumers are seeking the safety and convenience that digital banking provides,” Colin Walsh, co-founder and CEO of Varo, said in a statement.
Additionally, Varo aims to leverage the funds in spurring financial innovation, helping curate better banking products for the everyday American.
“Since our inception, we have been laser-focused on becoming the first fully digital bank, giving us greater opportunity to deliver the affordable financial services that all Americans need today. This new investment will enable us to complete the chartering process and leverage our modern banking technology to build on our track record of innovation.”
What To Expect
Pending conditions of the OCC, FDIC and Federal Reserve, Varo said it expects to receive approval to be a national bank by summer 2020.
“In the midst of all the economic challenges people are facing right now, the digital economy can still be a force for good. Varo's focus on financial inclusion and the support they offer people to help manage their finances and reduce financial stress really matters at a time when so many American families are struggling in a volatile economy. And that's why RISE chose to partner with the team at Varo,” said Bono, U2 lead singer and co-founder of The Rise Fund.
To learn more about financial wellness with Varo, visit www.varomoney.com.
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