OCC Invitation Prompts Fintech to Apply for Traditional Bank Charter
Varo Money, a mobile banking startup, announced this week it has applied to become a national bank.
July 26, 2017 at 04:28 PM
3 minute read
Mobile banking startup Varo Money Inc. announced this week it has applied for a national bank charter.
Although Varo is technically a financial technology company, its application is not for the special charter for nonbanks, or fintechs, that has been proposed by the Office of the Comptroller of the Currency. Varo instead opted to apply for the traditional national bank charter through the OCC and the Federal Deposit Insurance Corp. — a step some attorneys view as a direct result of the OCC acting comptroller's July 19 speech to the Exchequer Club in Washington, D.C., that encouraged fintechs to act as banks.
In a press release issued Tuesday, the San Francisco-based company said it “seeks to be the first national bank in American history designed for people who want to bank on their smartphones,” adding that, “as a national bank, Varo will be able to help Americans nationwide.”
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