SAN FRANCISCO (PRWEB) March 08, 2018 - Mobile banking startup Varo Money, Inc. is demonstrating its commitment to help Americans build real savings with the launch of 1.25% annual percentage yield (APY) on their savings account*. The top 5 largest national banks offer 0.01-0.04%.**
Varo is also announcing a new product feature, SMS Alerts, which make it easier for customers to track their spending and see where their money is going. The company built this feature in response to survey findings that show too many Americans—and millennials in particular—need help with their overall financial health, both to build emergency savings and to avoid a perpetual state of stress about money.
This update comes just two months after Varo closed a $45M Series B funding round led by Warburg Pincus and The Rise Fund, a global impact fund led by private equity firm TPG.
“As a company, we are extremely motivated by our mission of improving consumer financial health,” said Colin Walsh, co-founder and CEO of Varo Money. “A bank account shouldn’t just be a place that holds your money—Americans deserve a bank account that actively helps them achieve their financial goals. By providing alert capabilities and increasing the rate on savings accounts, Varo is helping customers accomplish that very thing.”
Many Americans Are Struggling to Achieve Good Financial Health
A recent survey of more than 1,000 U.S. adults age 18+, conducted by Propeller Insights on behalf of Varo Money, determined that 85 percent of American adults sometimes feel stressed out about money, and a full 30 percent feel stressed out about money constantly.
? About 1 in 5 Americans (19 percent) are living paycheck to paycheck ? More than two-thirds of Americans (69 percent) report having had to dip into their savings to make it to the next payday at least once in the past two years ? 55 percent of millennials have dipped into their savings in the past few months ? About a third (31 percent) of millennials understand what their finances will look like from month to month only “somewhat” or “not at all”
According to the survey findings, two-thirds (66 percent) of American adults—including 71 percent of millennials—do not have a three-month emergency fund, and almost half (46 percent) don’t have any savings set aside for unexpected expenses. Certain events would throw these Americans into financial chaos, particularly job loss (36 percent), personal injury (35 percent), car trouble (33 percent), and even a pet care emergency (18 percent).
Helping Customers to Make More From Their Money
Varo is using mobile technology and intuitive design to change the future of banking. It offers customers a convenient all-mobile bank account through The Bancorp Bank that's designed to help them get ahead financially by featuring integrated banking and savings. Varo also offers lending products to qualified customers to help smooth cash flow and build savings—all from their phones.