In its first product launch since receiving its national bank charter in July, Varo Bank is targeting the small dollar lending market with the debut of Varo Advance.

Varo Advance instantly advances up to $100 to customers who have made at least $1,000 in qualifying direct deposits within the previous 31 days, Chief Technology Officer Deep Varma told Bank Innovation. The new credit product is integrated directly into the Varo Bank app, so that once the approval criteria is verified, customers can access the funds immediately through the mobile app. Customers choose when they’d like to repay the loan within a 30-day window.

No major back-end tweaks were necessary for the launch, Varma said. Advance was in the works before Varo, formerly Varo Money, officially became a bank, and was built into the core technology stack that went live with the launch of Varo Bank during the summer. The new Varo Bank app and the “back-end platform were designed with the capability to offer a cash advance product from the start,” Varma said. As a bank, Varo will lean on its own balance sheet to fund these small dollar loans.

Varo originated a “small personal loan portfolio” in 2019, Varma noted, which helped the bank to develop its overall credit program. Varo Advance builds on the company’s “No Fee Overdraft” program, which saved customers more than $100 million in its first year. “Varo customers requested a more proactive solution that offered greater control over their finances, rather than being forced to go into the red to access additional cash,” founder and CEO Colin Walsh said in a statement.

The San Francisco-based company, which launched in 2017, spent the past three years jumping through regulatory hoops to be the first consumer fintech to obtain a bank charter, which the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation and Federal Reserve approved this summer.

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