What are the differences between Varo Bank and Varo Money?

Varo Bank and Varo Money are essentially the same entity that underwent a transition, which can create a bit of confusion regarding their differences. Initially, Varo Money started as a fintech startup offering mobile banking services in partnership with The Bancorp Bank. However, in July 2020, Varo Money achieved a significant milestone by becoming Varo Bank, after receiving approval for its own national bank charter. This made it the first consumer fintech to receive a national bank charter in the United States, enabling it to offer FDIC-insured bank accounts independently without needing to partner with another bank for its financial services. As Varo Bank, the company now operates as a full-service online bank providing customers with checking accounts, savings accounts, credit and debit cards, and loans under its own brand. The distinction between Varo Money and Varo Bank lies in their regulatory status and operational capabilities—the former refers to the pre-charter fintech company while the latter is the post-charter nationally recognized bank.