Varo Money has been granted a national bank charter in the US.
The FinTech has approval to open Varo Bank thanks to the OCC and FDIC.
Varo can now offer customers a range of banking services that are FDIC-insured.
It first launched digital banking services in 2017.
What does this mean?
This is a significant milestone not just for Varo, but for the US FinTech landscape as the first FinTech is allowed a national bank charter. Varo was founded to help offer financial products to underbanked Americans, and says the approval will help improve the “financial health of millions”.