Varo Money takes on Moven’s consumer accounts
Varo Money, the San Francisco-based mobile banking start-up, is set to take on Moven’s consumer banking customers.
Moven, a fellow US-based fintech, was forced to shut down all its consumer accounts last month after its CEO Brett King revealed its long-term committed funding pipeline had been “impaired” by the coronavirus.
The blow meant Moven had to spin off its direct-to-consumer business and focus solely on its business-to-business (B2B) banking technology offering.
Customers’ money management accounts with Moven will shut on 30 April 2020. The number of customers set to move to Varo has not yet been revealed.
In February, Varo’s application to accept deposits got approval from the Federal Deposit Insurance Corporation (FDIC), taking it one step closer to becoming the first US mobile player to have a national bank charter.
Using Bancorp to store consumers’ deposits, the start-up is currently in the process of transferring these over to Varo.
Varo is also understood to be in talks with Moven about using its B2B solution.
“Moven has been a pioneer in the digital banking space and a long-time inspiration,” says Varo’s CEO Colin Walsh.
“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.”
Moven has already begun urging its customers to transition to a Varo account, where they will not be required to maintain a minimum balance or pay monthly account fees.