Mobile banking company Varo Money has received approval from the Federal Deposit Insurance Corporation (FDIC) for deposit insurance, as it moves closer to a national banking charter.
With this new approval, Varo moves into the final stage of the approval process. Initially, the banking platform had to receive a preliminary approval from the Office of the Comptroller of the Currency, which it did back in 2018.
When the banking platform receives its full bank charter, it will look to expand to additional types of services including credit cards, loans and other saving products.
The FinTech launched its services in 2017 and aims to improve financial inclusion and help people stretch their money further by having no minimum balance requirement or monthly account fee. Account holders can access their salary two days early and qualified customers can have a no fee overdraft feature for up to $50.
Varo Money CEO Colin Walsh said, “Despite historic economic growth, only 29% of Americans are considered financially healthy. Varo is committed to creating inclusive financial opportunities that deliver measurable benefits to all consumers. Becoming a fully chartered bank will give us greater opportunity to deliver products and services that positively impact the lives of everyday people around the country.”
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