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What they doFee-free mobile app that targets under-served banking customers across the United States
Investment Thesis
What they do
Fee-free mobile app that targets under-served banking customers across the United States
Striving to make banking more accessible & inclusive to a target audience of ~180 million 'battlers & builders'; and improving the financial well-being of its clients through:
- Better access to cash & credit
- Programs designed to encourage savings (for emergencies & other long-term goals)
- Tools to help create & build wealth
Investment Thesis
Having its own bank charter is a distinct competitive advantage
- Varo keeps 100% of its revenues - significant economic advantage over its neo-bank peers
- Ability to offer lending products, along with other services such as robo-advising and fractional share ownership
- Direct access to the 'National Payments System'
- FDIC membership
Uniquely positioned to serve the 'battlers & builders' target market
- Demographic of ~180 million has been largely neglected and/or ignored by incumbent banks
- Varo is well-suited to provide a comprehensive banking relationship to this target audience - evidenced by programs such as:
- Varo Believe: a credit building program that bridges customers towards using credit cards, where appropriate
- Early direct deposit & advances: allows customers to receive funds earlier, for a fee
Experienced Management Team with extensive backgrounds in both banking/finance & technology from organizations such as:
- Banking/Finance: Amex, Visa, Capital One, Morgan Stanley, Lloyds of London
- Technology: Apple, Google, Spotify, Dropbox
