In the Media

A disruptive vision: Varo is officially a bank

July 31, 2020

Member Robert Savoie (Cleveland) is quoted in “A disruptive vision: Varo is officially a bank” in Bank Innovation (subscription required). The article details how Varo recently became the first fintech to gain a national bank charter without acquiring a bank.

More fintechs will look to gain bank charters as their businesses mature, according to Robert Savoie, an attorney at McGlinchey. He added that a national bank charter helps fintechs avoid state by state regulations “even though the overall level of regulatory scrutiny is much greater on chartered depository institutions.”

“Given the increasing encouragement of innovation at the federal level, I do think you will see more de novo charters and acquisitions involving the fintech industry,” Savoie said.

Read the full article here (subscription required).