Digital banking app Varo Money announced a significant expansion to its digital banking app.
Varo is building an all-in-one solution with “frictionless, integrated and automated” deposit, budgeting, savings and lending products that help customers bank with ease and achieve better financial outcomes.
The San Francisco-based fintech company raised $34 million with an early funding round led by Warburg Pincus in May 2016.
Currently, bank accounts for Varo Money are provided by The Bancorp Bank.
In July, Vero Money applied to the Office of the Comptroller of the Currency for a national bank charter and to the Federal Deposit Insurance Corp. for federal deposit insurance to form Varo Bank N.A.
Varo Bank N.A. seeks to be the first national bank “designed for people who want to bank on their smartphones.”
The newest product features, announced this week, aim to help customers manage cash flow and build savings.
Varo expanded its core product offering to include mobile check deposit and a Varo Savings account, paying 25 times more interest than the standard 0.01% interest rate on savings accounts.
Varo also introduced a new tool, Varo Forecast, that aims to help customers understand their real cash flow situation and calibrate their spending. According to John Vars, chief product officer at Varo, the “Varo Forecast is a critical step in the ‘financial health lifecycle,’ which ensures that Varo customers can plan better, spend more wisely and save more, making better choices aligned with their goals.”
According to Varo, the Varo Forecast tool is designed to provide insight to help answer basic financial questions quickly, such as “how much money can I spend this month?” and “am I on track to meet my goals?” that most competitors don’t get right.
Varo Forecast provides customers with an overview of current balances, a 30-day view of cash flow health, income and upcoming bill predictions, and recommended actions to manage finances.
—Related on ThinkAdvisor: