Varo logo

Varo

Challenger

Varo is the first fintech to receive a U.S. national bank charter — offering no-fee checking, high-yield savings, and credit-building tools to ~5M underbanked customers, with $124M raised in 2025.

Best for: Neobank & Consumer Banking
Financial ServicesNeobank & Consumer BankingWebsiteUpdated May 2026

Company Overview

About Varo

Varo Bank is a San Francisco-based neobank and the first consumer fintech company in U.S. history to receive a national bank charter directly from the OCC (Office of the Comptroller of the Currency), achieving this milestone in 2020. As a fully chartered bank with FDIC insurance, Varo operates with regulatory authority that most neobanks lack, enabling it to offer banking products under its own license rather than through a partner bank arrangement.

Business Model & Competitive Advantage

Varo's product suite targets consumers who are underserved or underbanked by traditional banking, offering fee-free checking accounts, high-yield savings accounts (with no minimum balance requirements), early paycheck access via direct deposit, and the Varo Believe Card — a secured credit card designed to help customers build credit history through responsible usage. The company's mobile-first experience is designed for ease of use and financial transparency, with no hidden fees and automated savings tools.

Competitive Landscape 2025–2026

Varo has raised over $1 billion in total funding since founding, with a $123.9M round in late 2025 co-led by Warburg Pincus and Coliseum Capital Management providing a capital boost amid ongoing profitability efforts. The company reports approximately 5 million customers and a record adjusted operating income of $38.6M in the final quarter of 2025, though it continues to work toward full net profitability. Varo competes with Chime (the dominant US neobank), Current, and Dave, as well as traditional banks extending their digital offerings.

Curated content • Fact-checked and verified

Key Differentiators

Strong Challenger

Varo is an established challenger with significant market presence and competitive offerings in Financial Services.

Frequently Asked Questions

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