Varo, mobile-centric national bank charter in the U.S. integrates Temenos Cloud technology

By Pavithra R

Temenos, the banking software company, has announced that its cloud-native technology platform has gone live with Varo Bank.

Varo, the first mobile-centric national bank charter in the U.S., is using Temenos Transact as its core banking technology. The technology is enabling Varo to rapidly innovate and offer a full range of digital banking products, from saving and deposit accounts to credit and loans at reduced cost, supporting the firm in its mission to advance the financial wellbeing of Americans underserved by traditional banks. 

“Varo was founded with a clear vision to deploy a more efficient business model and cutting-edge technology in order to create a new kind of bank – one that is wholly designed around the financial health and wellbeing of the everyday American consumer. From the start, we knew this vision needed to be supported by having a national bank charter and an innovative technology partner like Temenos. After a three and a half year journey, I’m thrilled that Varo has made history as the first U.S. consumer FinTech to receive a national bank charter. Varo Bank is now live using our new industry-leading technology stack, developed in partnership with Temenos. Varo now has a historic opportunity to deliver the tech-driven banking products and services that will help millions of Americans make progress in their financial lives,” said Colin Walsh, Founder, and CEO of Varo Bank.

Temenos Transact core banking software technology hosted in the cloud supports Varo’s digital banking services. Its advanced cloud-native platform enables Varo to continuously deploy new features and products and innovate rapidly. Temenos’ platform also allows the bank to automate its back office, lower costs and benefit from lower-cost/income ratio, supporting Varo’s ability to scale based on customer demand and offer an expanded portfolio of services at a reduced cost such as checking and saving accounts with no monthly fees. The technology provider’s U.S. model bank approach has helped Varo meet the specific business and regulatory needs of the market in a cost-effective and efficient way. 

Varo is currently implementing Temenos Infinity Origination, a solution tailored to support loan and account origination in North America for banks and credit unions.

“Congratulations to Varo for achieving this unprecedented banking charter milestone. This marks a new beginning for digital banking in the U.S. and Temenos is proud to have supported Varo on this exciting journey. Temenos cloud technology will help Varo accelerate its impressive track record of growth, innovation, and social impact. We are pleased to see strong traction in the U.S. market across all our products as we continue to support banks to deliver value to their customers. We’re delighted to have accomplished this revolutionary milestone with Varo and look forward to supporting their continued growth in this next exciting phase,” said Max Chuard, Chief Executive Officer, Temenos.

The national bank charter allows Varo to expand its offering of comprehensive, FDIC-insured banking services and accelerate the pace of product innovation. The Temenos’ APIs Temenos technology support is expected to help the bank to launch its next generation of new banking products and features with reduced time to market and at a lower cost.

Founded in 2015, Varo’s mission is to redefine banking, enabling everyone to make smart choices with their money. The FinTech has built its fully digital banking solution from the ground up faster than originally planned. Launched its banking services officially in July 2017, offering premium banking products through The Bancorp Bank, Varo helps Americans stretch their money with bank and savings accounts that have no minimum balance requirement and no monthly account fees.