Varo competes with Chime, Current, N26, Level, Step, and Moven, among other startups, today. Varo’s decision to obtain a charter distinguishes it from the crowd in that, rather than partnering with a bank, it became one.
Varo has been given a national bank charter and has acquired regulatory approvals. This makes Varo the first all-digital nationwide consumer bank in the United States.
Its banking services were launched in 2017 to make younger consumers feel confident about doing all their banking online. Since its inception in 2015, the company has raised nearly $1 billion and was valued at $2.5 billion at the time of its last raise in 2021. Institutions such as Lone Pine Capital, Warburg Pincus, and The Rise Fund, as well as U2 front man Bono and NBA player Russell Westbrook, have backed the company.
Varo competes with a variety of startups, including Chime, Current, N26, Level, Step, and Moven, among others. Rather than partnering with a bank, Varo became one in obtaining a charter, separating it from the pack.
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