Varo Bank Doubles Varo Advance to $500

Low-cost loan limit increase helps paycheck-to-paycheck consumers cope with higher holiday prices 

SAN FRANCISCO, Nov. 27, 2023 /PRNewswire/ -- Varo Bank, N.A., the first nationally-chartered consumer techbank in the U.S., today announced an increase to $500 for its Varo Advance¹ cash limit for qualifying customers to help mitigate financial stress over the holidays. This increase doubles the previous maximum limit of $250 and is a five times increase from the $100 offered at the product's launch in late 2020. Varo Advance is one of the lowest-cost short-term loans available among finance apps.²

Varo Advance seamlessly integrates into the Varo mobile app and only takes a few taps to apply, with no impact on credit scores. Customers receive the money in their bank account within seconds. They can make use of a flexible 30-day repayment period², which is an alternative to predatory payday lenders or other money apps that require repayment on the next payday. There are no hidden charges, fees for instant access, nor requests for tips.

"We have increased the maximum limit for Varo Advance because our customers living paycheck-to-paycheck have asked for a way to pay for increased living costs without going into costly debt," said Colin Walsh, the founder and CEO of Varo Bank. "Varo Advance can act as a lifeline to cover their short term cash flow gaps at a low cost, which we hope will be particularly helpful at holiday time."

Varo Advance is the latest example of how Varo Bank has quickly responded to customers' financial challenges in 2023. For example, to solve the issue of unprotected P2P wallets without deposit insurance, it introduced Varo to Anyone to provide Varo customers with fast, free, and secure P2P payments to anybody with a U.S. debit card. Varo also has one of the nation's highest savings APY rates in the country to help build wealth once a customer achieves positive monthly cash flow.

Americans Under Financial Stress: The Data 
Higher costs of living and a cooling job market have hit many parts of the population hard. A recent Varo study in partnership with Morning Consult - Varo Wealth Watch Insights Report - highlights those groups most impacted:

• Women are much more impacted by the hardships of living paycheck-to-paycheck, with 67% identifying as financially fragile and not feeling able to find $2,000 in 30 days if needed.
• People across all walks of political life (30%-plus in groups representing Democrats, Republicans, and Independents) cited the daily cost of living (food, transportation, rent, child care) as the biggest financial obstacle in their lives.
• 52% of people who identify as living paycheck-paycheck have less than a College-level education, yet 48% have at least a College diploma or higher, proving that post-graduate education doesn't guarantee financial security.
• Of all Gen Z respondents (born between 1997-2012), 38% indicated they were too embarrassed or ashamed to ask for financial help.

For more information about Varo Advance, please visit our website: https://www.varomoney.com/cash-advance.

About Varo Bank, N.A.

Varo Bank is a new kind of bank ⎼ the first nationally-chartered consumer techbank in the U.S., built from the ground up with a focus on the needs of Americans living paycheck to paycheck. From credit building to savings to faster payments, Varo has a complete solution to help hard working Americans make progress in their financial lives. Varo combines the capabilities and nimbleness of a technology company with the security and oversight of a regulated financial institution, enabling agile product design that provides technology-first solutions such as Varo Believe, a secured card to help build credit; Varo Advance, to help stretch hard-earned dollars between paychecks; and a high-yield savings account, offering one of the nation's highest APY rates in the country. Varo has been named as one of the Inc. 5000 2023 fastest growth companies in the U.S., CNBC's 2023 list of the World's Top Fintech Companies, one of Forbes' World's Best Banks, and Fast Company's Most Innovative Companies. For more information on Varo Advance, Varo Believe, and other offerings such as Perks, visit www.varomoney.com, like Varo Bank on Facebook, and follow us on Instagram and Twitter @varobank. ©2023 Varo Bank, N.A. Member FDIC.

Media Contact: Audrey Jacobson, Consort Partners
[email protected]

¹ Varo Advance is a small dollar line of credit. To qualify for Varo Advance you must have an active Bank Account and qualifying direct deposits (QDD) of at least $800 during the current or previous calendar month. Once qualified for Varo Advance, you will be assigned a credit limit from $20 to $250. The maximum Advance amount is $500.

² Based on November 2023 internal Varo research among single standalone loans with repayments of 30 days or less, no subscription fees or early wage payment requirements.

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SOURCE Varo Bank