The article discusses the mobile banking startup Varo Bank, which has received a significant investment of $30 million from Lone Pine Capital and other investors. Varo is becoming a real bank by obtaining a national bank charter, which will allow it to offer a wider range of financial services to its customers. The company’s CEO, Colin Walsh, aims to make Varo an iconic brand that does good in the world.
Varo competes with other digital banks operating in the US, including Chime, Current, N26, and others. The company has seen a significant boost in business due to the pandemic, as many people re-evaluated their banking relationships and switched to digital banks offering better value and convenience.
The new investment will be used to continue investing in Varo’s products, risk platform, and design, with the goal of scaling to tens of millions of consumers. The company aims to become a "loved brand recognized for its social impact mission" and is vocal about its intent to help boost financial inclusion for marginalized and underserved communities.
Key points:
- Varo Bank has received $30 million in investment from Lone Pine Capital and other investors.
- The company is becoming a real bank by obtaining a national bank charter.
- Varo competes with other digital banks operating in the US, including Chime, Current, N26, and others.
- The pandemic has boosted business for Varo, as many people switched to digital banks offering better value and convenience.
- The new investment will be used to continue investing in Varo’s products, risk platform, and design.
