Breaking News
Varo Bank Doubles Varo Advance to $500
Varo Bank, N.A., the first nationally-chartered consumer techbank in the U.S., today announced an increase to $500 for its Varo Advance 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.
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.
People In This Post
Companies In This Post
- Intesa Sanpaolo Agreement with BlackRock to Develop Digital Wealth Management in Europe Read more
- New Paychex Funding Solution Gives Small Businesses Access to Capital Read more
- Jumio Announces Mike Nawrocki as Chief Revenue Officer Read more
- Visa Flexible Credential Goes Global: Transforming the Card for a Digital Future Read more
- America Loves Instant Payments, as New RTP® Network Records Show Read more