Across the United States, challenger banks are springing up, such as Chime and Simple. But, within the US, most of these don’t actually have their own charter.

Meet Varo Money — the digital bank that wants to become the first challenger bank to receive its own US charter.

I spoke with Wesley Wright, Varo’s COO, on the Payments Innovation podcast to hear about why pursuing their own charter is so important. Wesley’s response?

Because they want to own the entire customer experience.

What we talked about:

Traditional banks haven’t responded to everyone’s needs
Varo focuses on long-term, core banking relationship with customers
Varo’s goal: own the customer experience
The sponsor bank model versus being a chartered bank
What would need to change to become their own charter
How does Varo determine which processes to keep in house and which to outsource?
Varo’s “customer-centric” approach

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Until next time!

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One Challenger Bank’s Mission to Own the Entire Customer Experience w/ Wesley Wright