US-based fintech Varo has announced that the Federal Deposit Insurance Corp. has approved its application for deposit insurance.
Varo received conditional approval from the Office of the Comptroller of the Currency for a national bank charter in September 2018. But the company said shortly afterward that it had withdrawn its application with the FDIC to give it time to fill key posts and address other concerns the agency had. Varo refiled its application last summer.
Assuming its gets final sign-offs from the OCC and the Federal Reserve, Varo will have its national bank charter in hand soon. It would be the first fintech provider among several similar applicants to get the green light from federal regulators. The charter will allow it to make loans in all 50 states and more freely view data about customer accounts, which are currently held by a third party, the Bancorp Bank.
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