Varo Bank goes live on Temenos Transact core banking system
Varo Bank has gone live with Temenos Transact as its core banking technology. The news about this project was first exclusively published by FinTech Futures in 2018.
Varo Bank has picked a handful of Temenos systems
Varo, which launched in 2015, provides no-fee checking and savings accounts with no overdraft fees through its mobile application. It received a national banking charter from the US Office of the Comptroller of the Currency (OCC) in August.
The bank is one of only a handful of recipients since the 2008 financial crisis. It has snapped up accounts from compatriots as part of a growth strategy.
In March it nabbed the accounts of US fintech Moven after the latter saw its funding pipeline dry up. It also agreed to buy the accounts of 2 million customers from Bancorp.
“Varo Bank is now live using our new industry-leading technology stack, developed in partnership with Temenos,” says Colin Walsh, founder and CEO of Varo Bank.
“Varo now has a historic opportunity to deliver the tech-driven banking products and services that will help millions of Americans make progress in their financial lives.”
Temenos has deployed Transact in the cloud. The vendor claims its core banking system enables “rapid innovation and offers a full range of digital banking products”.
Varo Bank is also implementing the Temenos Infinity Origination platform to underpin its loan and account origination.
Synergy
“That synergy in vision and the Temenos leadership set the tone for a strong working relationship from the start,” Deep Varma, Varo chief technology officer, tells FinTech Futures.
“The Temenos cloud based core banking platform allows for real time integration, and supports Varo’s hyper efficient model. Temenos’s core solution also ensures we meet the US’ specific banking and regulatory requirements.”
Alexa Guenoun, president of Temenos Americas, reveals to FinTech Futures that the two firms had worked together since 2017.
“While the Temenos implementation was fast, the journey to passing all regulatory tests to become a fully nationally chartered bank took time and was finally completed this summer,” Guenoun says.
“To be the first consumer fintech granted a national bank charter in the US is testament to Varo’s vision, ambition and leadership, and we are proud to have been their technology partner in this historic milestone.”
