Startup Varo Money has raised $45 million for its plans to become a full-fledged, “national bank,” the startup announced yesterday.
The funds will go towards marketing its service as well as for laying “the foundation” to become a bank, company CEO Colin Walsh told TechCrunch. Varo, a mobile banking startup that provides an FDIC-insured bank account to its users, is currently backed by The Bancorp Bank, but has applied for its own bank charter.
As well as bank accounts, Varo also provides loans to its customers through the platform. Most importantly for the company’s business model, the company does not charge overdraft, foreign transaction, or minimum balance fees on its accounts.
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