Attaining its own charter will enable Varo to expand its product suite considerably, broadening its appeal and benefitting its bottom line
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. The neobank intends to use its newfound independence as a licensed bank to grow its product offerings by adding credit products such as short-term loans, credit cards, and, further down the line, home financing. The next six to 12 months are going to be pivotal for both Varo and US neobanks more broadly as Varo sets the tone for neobank licensing. As a trailblazing licensed neobank, Varo will be under a lot of pressure to justify the confidence regulators have placed in it.
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