Senior Risk Analyst, Varo Bank

With many young customers distrustful of traditional banks, Varo has capitalized on this sentiment and grown to serve more than 7M customers. It does have a number of competitors, including Chime and Step, and it's also in competition with established traditional brick-and-mortar banks. However, as the first consumer fintech to be granted a national bank charter in the US, the company is at the front of the fintech revolution with a path to future success.

In response to ongoing economic uncertainty, the bank implemented cost-reduction measures throughout 2022, delivering a meaningful turnaround. These actions significantly reduced its burn rate, addressing a key area of concern. Notably, a refined marketing strategy has also emerged, with Varo prioritizing customers who use the platform as their primary bank rather than simply expanding overall user numbers, putting the company in a position for more sustainable, long-term growth.