Varo Bank is an online-only neobank based in San Francisco that offers digital banking services and investment products to consumers. Founded in 2015, Varo obtained a national bank charter in 2020, becoming the first fintech company to be granted one. With its tech-driven model and lack of physical branches, Varo aims to provide more accessible and affordable financial services. This article will provide an overview of Varo’s key offerings, including its deposit accounts, lending products, and robo-advisory investment platform Varo Invest.
Varo Offers Fee-Free Checking and Savings Accounts
Varo provides online checking and savings accounts with no monthly fees or minimum balance requirements. Its flagship product is a digital checking account with features like early direct deposit, fee-free overdrafts up to $50, and a debit card that enables fee-free withdrawals from over 55,000 Allpoint ATMs. Varo’s high-yield savings account offers an above-average interest rate. Customers can manage their Varo accounts via the mobile app and access services like two-day paycheck advances, automated savings tools, and real-time spending insights.
VaroPersonal Loans and Credit Cards Available to Qualified Customers
In addition to deposit accounts, Varo extends credit products to customers who meet certain eligibility criteria. The Varo Personal Loan allows borrowers to access up to $5,000 with fixed rates and terms. Varo also issues Visa credit cards on a limited basis to customers who demonstrate consistent direct deposits and account activity. The Varo credit card has no annual fee, offers 1% cash back on eligible purchases, and enables cardholders to track spending on the Varo app.
Varo Invest Provides Automated, Low-Cost Investing
Varo Invest is Varo’s robo-advisor platform that offers automated investing with no account minimum. After customers complete a risk assessment questionnaire, Varo Invest builds and manages a globally diversified ETF portfolio tailored to each investor’s goals. Portfolios are rebalanced and optimized over time for a management fee of just 0.25% annually. With its digital tools and fractional share investing, Varo Invest enables easy access to capital markets for retail investors.
Varo Bank Focuses on Accessible, Mobile Financial Services
As a mobile-first digital bank, Varo aims to make financial services more convenient and accessible through tech-driven products. By reducing physical footprints and overhead costs, Varo can offer fee-free accounts, credit products, and low-cost investing to its customers. However, the lack of in-person banking may deter some consumers who prefer more traditional models. Overall, Varo’s offerings show the capabilities of digital banking and robo-advisors to disrupt personal finance.
In summary, Varo Bank provides a suite of digital banking and investment services focused on convenience and affordability. Its key offerings include fee-free checking/savings accounts, personal loans, credit cards, and a robo-advisor investing platform. Varo’s mobile-based model aims to reduce costs and improve accessibility in personal finance.