American mobile-only neobank Varo Bank has introduced a new cash advance service called ‘Varo Advance’.
Varo Advance provides eligible customers with instant access to up to $100 cash advance directly in the Varo Bank app.
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The new product gives qualifying customers with more control over their finances.
It comes with a fixed cost structure and with no hidden fees, and no instant access fees.
Moreover, Varo Advance offers cash advance of up to $20 for free. For $100 cash advance it charges $5.
Customers can repay the advances within 30 days.
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By GlobalDataUsing Varo Advance, customers need not use the overdraft facility on their account. By proactively accessing extra cash they can stretch their paycheck.
Varo Bank founder and CEO Colin Walsh said: “Our No Fee Overdraft programme was a huge success, saving Varo customers well over $100m in its first year.
“Varo customers requested a more proactive solution that offered greater control over their finances, rather than being forced to go into the red to access additional cash.
“Varo Advance was created to meet the short-term credit needs of millions of Americans, and it continues our commitment to provide customers the strongest possible foundation for their financial success, with instant availability and low, transparent pricing.”
Fully integrated into Varo Bank accounts, Varo Advance will allow customers to access cash advances without requiring credit checks.
The new product can be used immediately, and customers need not wait for the pending charges to be settled before they can access their cash.
Varo Bank, which is the only fintech firm with a national bank charter, also offers auto-savings tools like Save Your Pay and Save Your Change.
It also provides up to two days early access to direct deposits, in addition to cash advances.
Last month, Varo Bank tapped Temenos to undergo innovation and offer its customers digital banking products.
