A San Francisco-based mobile-only banking startup announced Sept. 14 new partnerships as it prepares to launch a beta of its mobile banking product in the U.S. later this year. Varo Money Inc. has signed an agreement with The Bancorp, in which The Bancorp Bank will be providing private-label banking services for Varo’s mobile checking and savings accounts. Varo also signed agreements with Galileo Processing Inc. to process transactions, Cachet Financial Solutions Inc. to provide mobile check deposit and Socure Inc. for digital ID verification.
“Varo is making great progress toward our mission to create a next-generation bank that gives consumers greater control,” said Colin Walsh, Varo CEO and co-founder. The goal of the mobile banking product is to offer features and tools to assist users in developing positive spending, savings and borrowing behavior, according to the company, which had received more than $27 million in a May funding round led by private equity firm Warburg Pincus. Varo plans to offer checking and savings accounts, a debit card and lending products through a mobile app. Varo also will provide access to popular finance apps and analysis of users’ spending and budgeting.
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