# Varo Bank Varo Bank is an Asset Manager based in San Francisco, United States. ## Overview - **Organization type:** Asset Manager - **Headquarters:** San Francisco, United States - **Region:** North America - **Founded:** 2015 - **Assets under management:** Undisclosed - **Website:** varomoney.com - **LinkedIn:** https://www.linkedin.com/company/varo-money-inc ## Regulatory record - **Reports private funds:** No ## About Varo is the first fintech to become a nationally FDIC-insured bank, offering an all-digital banking experience with zero surprise fees. It provides products including early direct deposit, cash advances, a credit builder card, and high-yield savings. The company does not rely on partner banks to hold deposits; customer money is FDIC-insured with Varo up to $250,000. Its mission is to make financial inclusion and opportunity a reality for all. ## Sectors - FinTech ## People - Colin Walsh — Chief Executive Officer ## Questions ### What is unique about Varo Bank's regulatory structure? Varo holds its own national bank charter from the Office of the Comptroller of the Currency, granted in July 2020. This allows it to hold customer deposits directly and originate loans on its own balance sheet — a model distinct from most fintechs, which rely on third-party sponsor banks. The charter subjects Varo to the same capital and regulatory oversight as incumbent national banks. ### How does Varo earn revenue differently from non-bank fintechs? Because Varo is the bank of record, it retains the net interest margin on loans it originates instead of splitting income with a sponsor bank. Its revenue model blends interest income on credit products with interchange fees from its debit and credit card programs. The firm does not generate material fee income from monthly service or overdraft charges, which it publicly waives. ### What credit products does Varo currently originate? Varo offers three main credit products: Varo Advance, which provides cash advances up to $500 with flat-fee pricing; a line of credit up to $2,000 with no late or origination fees; and the Varo Believe Visa Credit Card, a secured card designed for credit building. All are booked directly by Varo and reported to the major credit bureaus. ### Who are Varo's primary funding backers? Varo has raised over $1.0 billion in equity from backers including Warburg Pincus, The Rise Fund, Gallatin Point Capital, and Lone Pine Capital. The most recent disclosed round was a $510 million Series E in September 2021, led by Lone Pine, which valued the firm at roughly $2.5 billion at the time (per the firm, September 2021). ### What is Varo's current deposit and lending footprint? Varo does not operate physical branches but serves all 50 US states via a mobile platform with fee-free cash deposits available at over 7,500 CVS locations. Its high-yield savings account offers up to 5.00% APY on balances up to $5,000 and 2.50% APY on amounts above that threshold, per current public terms. ### How does Varo's cost structure compare to a traditional retail bank? Varo forgoes several fee lines that contribute a material share of revenue at incumbent banks, including overdraft, monthly maintenance, and minimum-balance fees. The firm also avoids branch-occupancy costs by maintaining a fully digital interface. This lower cost base is intended to be offset by higher-margin credit products and a direct net-interest-margin capture model. ### Has Varo reached profitability? Publicly, Varo has not reported reaching sustained profitability. In February 2024, the firm conducted a restructuring including workforce reductions specifically aimed at accelerating the path to profitability and shifting focus away from user growth toward unit economics (per American Banker, February 2024). ## Related profiles - [Hawk](https://altss.com/profile/hawk) --- Last updated: 2026-08-11T15:08:22.057Z Canonical page: https://altss.com/profile/varo-bank Maintained by Altss — https://altss.com — methodology: https://altss.com/methodology