A MESSAGE FROM CEO COLIN WALSH TO VARO BANK EMPLOYEES

Varovians,

After careful consideration and analysis, we’ve decided to fully outsource our contact center and a portion of the remote deposit capture group to reduce costs and bring us closer to profitability, while continuing to provide high-quality services to our customers. This decision, along with other changes to streamline our operations, impacts our team by 97 roles.     

This action further strengthens Varo’s financial position. We expect revenue to increase throughout 2023 as customer engagement and the impact of our product-led growth initiatives continue to accelerate. Our decision today will preserve capital and improve our cost structure as we continue to invest in product innovation and customer growth. Varo remains well-capitalized with a Tier 1 leverage ratio among the highest for U.S. banks.

I want to assure you that Varo is committed to managing this transition in a thoughtful and respectful way. All impacted employees have been notified and will be provided transition support, including career resources for new opportunities.

To the valued teammates and colleagues who are leaving us - thank you for working so hard to build our shared vision of a “Bank for All of Us”. Your contributions will continue to guide our future work and we are grateful. . I’m genuinely sorry that we have to say goodbye. Know that you will always be valued alumni of Varo. 

Varo’s mission is audacious. Our unique industry position as the only techbank with a de novo charter, allows us to serve the needs of everyday Americans striving to build wealth. I am confident we are well on our way to building a profitable, self-sustaining business that will help make financial inclusion and opportunity a reality for all.

Sincerely,

Colin