Varo is a publicly traded company owned by its shareholders, not by a traditional bank holding company or a single founder

Varo Bank is owned by Varo, Inc., a financial technology company that trades on the Nasdaq stock exchange under the ticker symbol VARO. This means the company is owned collectively by its shareholders — anyone who holds stock in the company owns a piece of it. There is no single owner, private equity firm, or traditional bank holding company that controls Varo.

The company went public in March 2021 through a merger with Megalith Financial Acquisition Corp., a special purpose acquisition company (SPAC). Before that, Varo was a private company funded by venture capital investors. The shift to public ownership means that Varo's direction and strategy are now shaped by its board of directors and influenced by shareholder votes on major decisions.

Varo Bank itself — the actual bank charter that holds customer deposits — is a subsidiary of Varo, Inc. The bank operates under a national bank charter issued by the Office of the Comptroller of the Currency (OCC), which is part of the U.S. Department of the Treasury. This charter allows Varo to take deposits and offer banking services directly to consumers.

Key Takeaways

  • Varo, Inc. is a publicly traded company on Nasdaq, meaning it is owned by its shareholders rather than by a single person or entity.
  • Varo Bank operates as a subsidiary of Varo, Inc. and holds a national bank charter from the Office of the Comptroller of the Currency.
  • The company became public in 2021 through a SPAC merger, transitioning from venture capital funding to public stock ownership.
  • Customer deposits at Varo Bank are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account type, regardless of who owns the parent company.

How Varo's Corporate Structure Works

Varo, Inc. is the parent holding company. It owns Varo Bank, which is the entity that actually holds your deposits and processes your transactions. This structure is common in the banking industry — the parent company handles business decisions, technology, and strategy, while the bank subsidiary handles the regulated banking operations.

Because Varo Bank has a national bank charter from the OCC, it is regulated like any other bank. The OCC examines Varo's operations, sets capital requirements, and enforces banking rules. The FDIC insures deposits up to $250,000 per depositor, per account type, per bank. This insurance exists regardless of who owns Varo — it is a federal protection that applies to all FDIC-insured banks.

The board of directors at Varo, Inc. sets the company's overall direction. Board members are elected by shareholders at annual meetings. Major decisions — like acquiring another company, issuing new stock, or changing the business model — require shareholder approval or board authorization depending on the decision's size and scope.

Who Founded Varo and When

Varo was founded in 2015 by Kollin Alves, who serves as the company's Chief Executive Officer. Alves built Varo as a mobile-first bank aimed at serving customers who wanted banking without branches or high fees. The company started as a private venture-backed startup, raising money from investors who believed in the fintech banking model.

In its early years, Varo was funded by venture capital firms and other private investors. These early investors owned shares in the company but did not control day-to-day operations. When Varo went public in 2021, those early investors' shares became tradable on the public market, and new public shareholders could buy in.

What Changed When Varo Went Public

Going public meant Varo had to meet Securities and Exchange Commission (SEC) requirements for disclosure and governance. The company now files quarterly and annual reports showing its financial performance, which are available to the public. It also has a board of directors that includes independent directors — people with no financial stake in the company's day-to-day operations — who oversee management on behalf of shareholders.

Public ownership also means Varo's stock price fluctuates based on market demand and the company's performance. Shareholders can buy or sell their shares at any time during market hours. If you hold Varo stock, you own a fractional piece of the company and may receive dividends if the board votes to pay them (though Varo has not historically paid dividends).

Being public does not change how Varo Bank operates for customers. Your deposits are still FDIC-insured, your transactions still process the same way, and the bank still follows the same regulatory rules. Public ownership affects the company's strategy and long-term direction, not the day-to-day mechanics of your account.

Regulatory Oversight and Customer Protection

Varo Bank's national bank charter means it answers to the OCC, not to state banking regulators. The OCC conducts regular examinations of Varo's capital, lending practices, risk management, and compliance with federal banking law. This oversight exists independently of who owns Varo — it is a legal requirement for any bank with a national charter.

The FDIC insures deposits at Varo Bank the same way it insures deposits at any other bank. If Varo Bank were to fail, the FDIC would step in to protect depositors up to the insurance limit. This protection is backed by the full faith and credit of the U.S. government and does not depend on the bank's ownership structure or the parent company's financial health.

Frequently Asked Questions

Is Varo Bank owned by a big bank?

No. Varo Bank is owned by Varo, Inc., which is an independent fintech company. It is not owned by JPMorgan Chase, Bank of America, Wells Fargo, or any other traditional bank. Varo competes with traditional banks but operates independently.

Can Varo be sold to another company?

Yes. As a publicly traded company, Varo could be acquired by another company if shareholders and the board approved the deal. However, any buyer would have to maintain Varo Bank's national bank charter and FDIC insurance. Your deposits would remain protected regardless of who owns the parent company.

What happens to my money if Varo goes out of business?

Your deposits are insured by the FDIC up to $250,000 per account type. If Varo Bank failed, the FDIC would either arrange for another bank to take over your accounts or pay you directly up to the insurance limit. Your money is protected by federal law, not by the company's ownership or profitability.

Do I own part of Varo if I have an account there?

No. Having a bank account at Varo does not make you a shareholder. You are a customer and a depositor. Only people who buy Varo stock on the stock market own shares in Varo, Inc. Your account is a liability for the bank — money it owes you — not an ownership stake.