Moven closes consumer-facing business, pushes customers to Varo

As Moven begins shutting down its consumer-facing businesses, the digital banking platform is funneling its customers to Varo Money . “Moven has been a pioneer in the digital banking space and a longtime inspiration. We are excited to welcome their customers and deliver on the types of technology and features they have grown to love,” said Varo CEO Colin Walsh in a statement. “Amidst the beginning waves of consolidation and change in the fintech industry, Varo is focused on becoming the first and only digital bank with a national charter.” Moven launched as one of the first digital banking platforms in 2011, before current players like Varo, N26, Revolut and Chime started gaining millions of customers. Moven founder Brett King told American Banker in March the company planned to spin off the consumer-facing business before the novel coronavirus dried up the funding to do so. Although the shuttering of its consumer platform marks the end of an era for Moven, the news is a vote of confidence for Varo, which is aiming for long-term success with its current application for a bank charter. New York City-based Moven offered consumers traditional banking and personal finance management tools like debit cards, spending insights and savings tools. The company told customers last month it would be closing their accounts by the end of April. Moven Enterprise, the neobank’s sister company that sells its digital banking technology, is still in business. The company’s technology powers spending insights tools for both TD Bank and Westpac , and also counts the Saudi Arabian fintech STC Pay as a client. See also: Varo crosses 1 million customers, with plans to become a bank by 2020 Varo, which is based in San Francisco, was founded in 2015 as a digital banking platform. Like Moven, Varo offers bank accounts, debit cards and savings tools. Although the company currently partners with The Bancorp Bank, Varo has spent years trying to get its own banking license. Varo gained approval from the Federal Deposit Insurance Corporation in February, leaving final approval from the Office of the Comptroller of the Currency and the Federal Reserve as the last steps before it can become its own bank. Walsh previously told Bank Innovation the company aims to have a banking license in the first half of this year. Walsh said a banking license could help Varo expand into credit, joint accounts, wire transfers, money market accounts and certificates of deposit. The two companies said in a statement they will look to partner beyond transitioning Moven’s customers and that Varo will look to use Moven’s enterprise technology to expand its banking services. “We are excited to partner with Varo ahead of their official national charter,” said Marek Forysiak, CEO of Moven, in a statement. “Our patented financial wellness technology aligns with Varo’s efforts to help everyday Americans gain access to better financial insights and opportunities.”

Moven closes consumer-facing business, pushes customers to Varo

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