“Can Varo — the only OCC-chartered consumer neobank — leverage its banking license to profitably serve financially underserved Americans without a sponsor bank intermediary?”
Founded in 2015 as a mobile banking app for underserved Americans, Varo initially operated as a fintech on top of The Bancorp Bank's charter. It pursued and won a full OCC national bank charter in 2020 — a landmark first for a consumer neobank — eliminating its dependency on a sponsor bank and allowing it to hold deposits directly. After raising over $1 billion cumulatively and reaching a $2.5B peak valuation in 2021, Varo faced a down round in 2023 and a difficult fundraising environment. In 2025, founder CEO Colin Walsh stepped down, replaced by Gavin Michael, as the company works to reach profitability on a leaner cost base.
Varo discloses Varo Bank, N.A. (in-house) as its banking provider, according to the Embedded Finance Index 2026.
Varo does not disclose a bank charter of its own; its banking services are provided through Varo Bank, N.A. (in-house).
Varo processes payments through Varo Bank (self-operated).
Varo's cards are issued through Marqeta.
Varo connects to bank accounts through Plaid.
Varo uses WorldRemit for FX and cross-border payouts.
The Embedded Finance Index 2026 maps 6 layers in Varo's stack: Payments / PSP (Varo Bank (self-operated)); Banking / BaaS (Varo Bank, N.A. (in-house)); Card issuing (Marqeta); Lending (Varo Advance (cash advance up to $500) and Varo Line of Credit (up to $2,000, flat fee, no interest)); Open banking (Plaid); FX & payouts (WorldRemit).
Varo was founded by Colin Walsh and is founded in 2015, headquartered in Salt Lake City, Utah (corporate office also listed at San Francisco, CA).
Varo has raised $1B+ in total (latest round: Series G (partial close), February 2025; valuation: $1.85B post-money (2023 Series F/equity round)).
Get a read on where your own stack stands against Varo and the rest of its category — what they built versus bought, which providers they use, and where the gaps in your own strategy and competitive set actually are.