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On July 31, the U.S. Office of the Comptroller of the Currency
granted Varo Money a national bank charter. This makes Varo the
first FinTech to receive a national bank charter from the OCC. In
an interview about Varo, Brian Brooks, the Acting Comptroller of
the OCC, called the granting of Varo's charter a "come on
in, the water's fine" moment for Fintechs.
FinTechs are starting to line up to take the plunge, but are
having a hard time weighing the advantages and disadvantages. As
Jeff Alberts, co-head of the FinTech Group, discusses in the video
below, there are numerous benefits to getting a bank charter,
including:
Avoiding duplicative state
regulation
direct access to payment systems
Funding through FDIC-insured
deposits
Access to wholesale funding
If you are interested in learning more about the benefits and
challenges of obtaining a bank charter, check out the video.
Originally published August 12, 2020.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
Virtual Currencies Comparative Guide for the jurisdiction of United States, check out our comparative guides section to compare across multiple countries
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