FDIC approves deposit insurance for Varo Bank

Feb 11, 2020

The FDIC approved the deposit-insurance application of Varo Bank, bringing the mobile payments provider a step closer to becoming the first fintech with a full-service national bank charter.

ICBA has used the Varo application as an example of how fintechs that want bank charters should enter banking, rather than through the industrial loan company loophole or the OCC's proposed special-purpose fintech charter. ICBA continues calling on community bankers to tell Congress to close the ILC loophole.