Fast-growing mobile-banking service kicks off national media campaign
in cities across the country.
Mobile banking company Varo Money, Inc. today announced a multimillion dollar marketing partnership with iHeartMedia, the number one audio company in America. Under the agreement, Varo will launch an extensive three-year campaign across iHeartMedia’s multi-platform audio network, including its broadcast radio, digital, podcast, social, and live events platforms. The deal helps build further awareness of Varo as one of the most-loved challenger banking companies in the United States and will kick off with a seven-week campaign that spans the largest radio metros in the country, including radio talent out of Atlanta, Chicago, Houston, Dallas, Miami, San Francisco, Phoenix, Las Vegas, Los Angeles, and New York.
Varo, whose mission is to help every person feel better about their money and improve their financial health, has nearly one million bank account customers and has seen double-digit growth since the launch of its No Fee Overdraft initiative in August 2019. The first service of its kind, Varo customers can overdraft their bank account balance up to $50 with no fee and no interest when they meet certain eligibility requirements,* offering greater flexibility for paying bills in between paychecks. Incumbent financial institutions charged $34.5 billion in overdraft fees in 2018, and the vast majority of overdraft fee revenue came from customers who could least afford it.
“Building community through our customers who live in great American cities and towns—and who connect to the trusted local radio personalities they hear every day—is central to our mission to not just improve financial standing but also empower communities that may feel underserved and overcharged by the existing traditional banking system,” said Colin Walsh, CEO and co-founder of Varo Money. “We are thrilled to work with iHeartMedia and use their unparalleled range of audio platforms to increase our local presence in cities that have the ‘Varo love.’ Varo’s trusted banking services are flexible enough to meet the diverse needs in every city, from helping transportation workers get paid early** with direct deposit to supporting teachers to save for a rainy day with automated saving tools.”
The multi-year deal with iHeartMedia, which has more than 850 radio stations and reaches a quarter of a billion consumers every month through its broadcast radio assets alone, adds momentum to Varo’s hyper-growth around the country.
“iHeartMedia reaches more than 91 percent of Americans monthly, and Varo’s important mission of financial inclusion and education is a natural fit for our audiences nationwide,” said Peter Volynsky, iHeartMedia’s Executive Vice President of Corporate Development & Ventures. “We are delighted to work with Varo to bring valuable lifetime banking services to tens of millions of Americans.”
Varo customers can save up to hundreds of dollars in bank and overdraft fees. Customers are also eligible to get paid two days faster** with direct deposit through the bank account’s Early Direct Deposit feature. They can also set up auto-savings features to build savings and earn up to 2.80% Annual Percentage Yield*** with no minimum balance requirement with a Varo Savings Account.
Varo is the first fintech company to receive preliminary approval from the Office of the Comptroller of the Currency (OCC) to open as the first mobile-first national bank.
Varo bank account services are provided by The Bancorp Bank; Member FDIC.
About Varo Money
Varo Money, Inc. (“Varo”) is on a mission to help people make progress with their financial lives. In one mobile app, Varo offers customers no-cost† premium bank accounts, high-interest savings accounts, and tech-first features to help people save and manage their money more easily. Bank account services are provided by The Bancorp Bank; Member FDIC. As a fintech leader, Varo has been granted preliminary approval for a de novo national bank charter by the Office of the Comptroller of the Currency (OCC), and is working to become the first mobile-centric national bank in U.S. history. Varo Personal Loans are offered by Varo Money, Inc., under state licenses, subject to application approval. For more information, visit www.nofeeoverdraft.com or www.varomoney.com, like Varo on Facebook, and follow us on Instagram and Twitter@varomoney.
*To be eligible for No Fee Overdraft, customers must make at least 5 qualifying debit card purchases each calendar month; receive payroll or government direct deposits of at least $1,000 each calendar month into their Varo Bank Account or Savings Account; and opt-in to the program via the app on their mobile device.
**Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct Deposit and earlier availability of funds is subject to payer’s support of the feature and timing of payer’s funding.
***To earn 2.80% APY, the Savings Account balance must be $50,000 or less and the customer must meet both of the following requirements. If the Savings Account balance is above $50,000, or both of the following conditions are not met, the APY will be 2.02% on the entire Savings Account balance:
- Receive payroll or government direct deposits totaling at least $1,000 each month into the Varo Bank Account
- Use the Varo debit card to authorize at least 5 purchases each month (excluding ATM or Over-the-Counter Cash Withdrawals and P2P transfers)
New customers seeking to qualify for 2.80% APY will first need to set up direct deposit and receive their debit card in the mail and activate it. Until the qualifying direct deposit(s) are posted and debit card purchase transactions made, they will earn 2.02% APY.
The APYs are accurate as of November 1, 2019; rates are variable and may change. There is no minimum balance required to open the account. Balance in Savings Account must be at least .01 to earn interest.
†Varo charges no fees for banking services. While Varo does not charge fees for ATM withdrawals, some third-party ATM operators may charge a fee. To avoid ATM fees altogether, customers can use an Allpoint® Network ATM. There are more than 55,000 Allpoint locations worldwide.