Varo the US-based financial technology company has launched a new consumer lending tool via its mobile app.
Varo will be issuing credit products in several states through its own lending licenses. With this move, it believes it has created a more holistic offering for its customers' financial needs. Varo recently solidified key strategic partnerships to support this launch including a banking and credit relationship with Silicon Valley Bank and Cloud Lending Solutions.
Jaime Jerusalmi, Varo's Head of Lending Products, said "We are very excited about the suite of lending products we are building and the partnerships we have formed to support Varo's lending capabilities."
"In addition to cutting-edge functionality, we plan to raise the bar in terms of helping customers borrow responsibly. Our Varo Flexible Credit product will be a great alternative for people who don't want to use their credit card to finance large purchases, to accommodate an unexpected expense or that want to build their credit."
The Varo Money app is currently in beta and is expected to launch in the coming months.
In May 2016, Varo announced a $27m funding round led by Warburg Pincus. Varo is working with several partners and a panel of millennial advisors to develop and deliver innovative banking products in the US.