Bancorp teams with Varo for mobile-only banking

WILMINGTON — The Bancorp, a Wilmington company that issues credit cards and services the needs of non-bank financial companies, has signed an agreement with Varo Money Inc., a mobile-only banking start-up, to provide private label banking services.

The Bancorp services will support Varo’s mobile checking and savings products, while other companies will provide processing and verification services.

“Varo is making great progress toward our mission to create a next generation bank that gives consumers greater control, and we look forward to future milestones,” CEO Colin Walsh said. “We are excited to bring on partners of this caliber to support our business.”

Varo, which received a financing round of more than $27 million in May from investors led by private equity firm Warburg Pincus, says it intends to launch its beta product to a closed group of users later this year, and is in active discussions with partners to support its planned lending activities.