FinTech: Moven’s Consumer Banking Accounts to Move to Varo
Moven will close all its consumer accounts by April 30, 2020.
Moven announced last month plans to focus completely on the enterprise side of its business. It pulled the plug on its consumer banking unit after the coronavirus put paid to financing plans. Moven planned to close customer accounts by April 30. It now transpires that digital banking challenger Varo Money will take over these accounts. (FINOVATE)
Varo Money said it will partner with financial technology innovator Moven to transition the latter’s customer accounts to Varo.
“Moven has been a pioneer in the digital banking space and a long-time inspiration. We are excited to welcome their customers and deliver on the types of technology and features they have grown to love,” said Colin Walsh, CEO of Varo, in a statement.
Walsh told BankingDive that he reached out to CEO Brett King on hearing that Moven intended to pivot to B2B. Walsh offered to provide Moven customers a “soft landing” at Varo.
“We care deeply about our Moven banking customers which is why we made the thoughtful decision, as we transition away from our consumer business, to recommend Varo for their banking needs,” said Moven’s Marek Forysiak.
The partnership may extend to technology
The two companies may also agree to use Moven’s technology in Varo’s banking expansion once it receives a national bank charter.
Founded in 2015, Varo offers customers a high yield savings account and a mobile banking application. It also offers various services such as an early direct deposit. It also offers no free overdraft up to $50, no minimum balances and no monthly account fees.
As of February, the FDIC insures the deposits at the digital bank. It is currently making all efforts to transform into a full-fledged digital bank with a national charter.
“Amidst the beginning waves of consolidation and change in the fintech industry, Varo is focused on becoming the first and only digital bank with a national charter,” said Varo’s Walsh. “This will allow us to provide a greater breadth of digital banking solutions that meet the needs of the way people live and work today.”
“We are excited to partner with Varo ahead of their official national charter,” added Moven’s Forysiak. “Our patented financial wellness technology aligns with Varo’s efforts to help everyday Americans gain access to better financial insights and opportunities.”
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