Hot on the heels of its $241m Series D round in June, Varo Money now claims that it has saved customers more than $100m in overdraft fees during the past year and takes a shot at traditional banks in the process.
The neobank noted that none of America’s ten largest banks has reduced or waived its overdraft fees as Covid-19 continues to spread across the country.
Citing research from the Center for Responsible Lending, Varo Money said that the largest US banks took $11.7bn in overdraft fees from the accounts of American consumers in 2019.
Varo Money allows its qualified customer to overdraw their bank account up to $50 with no fees.
“Fees, such as overdraft, are often charged to consumers who can least afford them, a model that Varo is fundamentally opposed to,” said Colin Walsh, founder and CEO of Varo Money.
“Over the past year, Varo customers have been able to benefit from our No-Fee Overdraft – offering a short-term bridge to help our customers stretch their finances to the next paycheck. It’s a clear example of our vision for a better way to bank for everyone.”
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