Colin Walsh reportedly stepping down as Varo Bank CEO
Varo Bank founder Colin Walsh is reportedly stepping down as CEO after nearly a decade leading the US-based challenger, according to American Banker.
Varo Bank founder Colin Walsh is reportedly stepping down as CEO
American Banker reports that Walsh, who will remain a board member at the bank, will be succeeded as CEO by Gavin Michael, who previously served as CEO of digital asset platform Bakkt until March last year.
Varo was founded by Walsh in 2015 and offers savings and current accounts, money transfer and credit-building services, and personal loans.
Five years after its inception, Varo notably became the first fintech in the sector to secure a full-service national bank charter in the US, granted by the Office of the Comptroller of the Currency (OCC) in 2020.
Backed by the likes of Warburg Pincus, The Rise Fund, and Lone Pine Capital, the challenger secured $510 million in a Series E funding round in 2021 at a $2.5 billion valuation; followed by a $50 million raise in 2023 at a heavily discounted valuation of $1.5 billion; and most recently a $29 million raise as part of an investment round with a $55 million target.
A recent report by Fintech Business Weekly highlights that Varo recorded a $65 million net loss for 2024, but notes the bank did see a 22% increase in revenue, over half of which was derived from interchange.
Varo has been contacted by FinTech Futures for comment.
