Flatex : OCC Gives Varo A Bank Charter And Tells FinTechs "The Water Is Fine"

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.

Mr Jeffrey Alberts
Pryor Cashman LLP
7 Times Square
New York
NY 10036
UNITED STATES
Tel: [phone]
Fax: [phone]
E-mail: [e-mail]
URL: www.pryorcashman.com

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