Varo Bank, N.A., the first nationally-chartered consumer techbank in the U.S., today announced the introduction of two new products designed to help Americans relieve growing financial pressure.
Varo Line of Credit provides a unique way for consumers to access credit. Customers can be pre-approved up to $2,000 to cover unexpected expenses, such as medical bills or car repairs, and pay it back over time. Varo Line of Credit has transparent fixed pricing and no late or hidden fees. Varo Line of Credit uses proprietary technology to underwrite customers based on their banking history with Varo—extending access to credit beyond their credit score. The more customers bank with Varo and establish a track record of regular deposits and on-time payments, the more they might be able to borrow. Unlike other lenders, Varo uses sophisticated daily credit underwriting to determine borrowing limits, giving customers the opportunity to access higher limits by consolidating their banking relationship with Varo.
The bank has also added Smart Bank Account features to enhance how users track and manage their money on a day-to-day basis, all in one place within the Varo Bank app. The account screen will now automatically show a real-time visual trend of their spending during the current and previous month, so they can more easily compare their financial position month over month and plan for upcoming expenses. Customers can filter by spending category in the same place where they review transactions to get the full picture of their monthly spending habits and help them budget smarter without needing outside tools or apps. Monthly real-time spending categories include Food & Drinks, Bills & Utilities, Shopping and more. Soon after launch, customers will also be able to compare various income streams, such as Payroll, Government Benefits, and Tax Refunds.
Far too many Americans face increasing daily challenges trying to make ends meet. Inflation, higher credit card debt, student loan repayments and unexpected expenses take a toll on consumers' well-being. With Varo, there is a more innovative way to reduce money worries and take control of finances from a bank that has built a fully integrated system to support successful money management instead of encouraging spending and growing debt. For example, knowing the ins and outs of spending habits is the first step to effective budgeting, and these spending and income insights are being integrated directly into the Varo Bank Account.
"Varo Bank is continuing to demonstrate its commitment to helping the majority of Americans who are feeling increased fiscal pressure combat money-related stress and improve their financial lives," said Varo Bank CEO Colin Walsh. "Varo Line of Credit is a first-of-its-kind lending product that will help people borrow at a transparent cost when life happens and they need extra cash. And with the addition of new tech-driven smart features to the Varo bank account, customers can learn more about their daily financial habits and take immediate action to ease the anxiety of managing their money and get on track to build wealth over time."
Varo Line of Credit, plus the Smart Bank Account feature and insights, are the latest additions to Varo's comprehensive banking platform, empowering Americans currently living paycheck to paycheck to take control of their money. Additional popular features include Zelle® located in the Varo app, Varo to Anyone to send money instantly to practically anyone - no matter where they bank, free tax filing, no monthly or hidden fees, 40,000+ fee-free ATMs, a credit-builder card, up to 5.00% APY (Annual Percentage Yield) on savings, cashback offers, job opportunities and more. All Varo products are provided by a trusted national bank rather than a software company or non-bank lender. The Varo Line of Credit waitlist is now open, and the product will be available in Q2 2024.