Fintech, Varo Money has secured preliminary approval for National Bank Charter from the Office of the Comptroller of the Currency (OCC).
The approval will support the company to advance its plans to open all-mobile national bank in the US.
The new lender will focus on providing low-cost banking services to customers. This will in turn allow them to improve their financial condition.
Varo Money co-founder and CEO Colin Walsh said: “We founded Varo because we saw that banks weren’t serving the majority of their customers very well. We wanted to fix that.
“So we decided to build a bank from the ground up with the goal of improving consumers’ financial health. This will happen through better technology and a more efficient business model.”
Once operational, the all-mobile bank will offer fee-free banking services to customers, who will not be required to pay monthly maintenance fees, foreign transaction fees and ATM withdrawal fees.
Additionally, it will provide personal loans of up to $25,000 and savings account service with no minimum balance requirement.
Furthermore, the Varo banking app will feature automated tools to help customers increase their savings. The app will also come equipped with a customised tracker to set their financial goals.
All Varo customers can utilise around 55,000 Allpoint ATMs located worldwide at popular retail stores.
Varo Money will receive final National Bank Charter after fulfilling all OCC’s conditions and completing the necessary organisational steps.
In addition, Varo Money will have to procure approval from the FDIC to obtain insurance and Federal Reserve membership.