Varo Money and the Governor’s Office of Economic Development announced the financial technology company will expand to Utah, planning to add several hundred jobs to the community and $2.8 million in capital investment.
“Fintech is an important niche for Utah’s technology industry,” said Val Hale, executive director of GOED. “We look forward to Varo Money’s contributions to the state’s growth as a technology leader.”
Based in San Francisco, Varo Money is an “all-in-one” mobile banking platform aimed at helping credit-worthy millennials manage monthly expenses and accumulate savings. The service combines several money management features including a full financial picture, mobile banking with a Varo Visa® debit card issued by The Bancorp Bank, tools to help customers build savings, and lending solutions. Varo’s product is perfectly suited to help people improve their financial lives and is committed to servicing the needs of the Utah community. The Utah office will contain positions in banking operations and customer service and may at a later date also include risk management and technology functions.
“Varo Money is excited to leverage the great financial services and technology talent in the Wasatch Front market,” said Colin Walsh, co-founder and CEO of Varo Money. “The entrepreneurial spirit in the Salt Lake Valley will be a perfect fit with Varo’s culture. We look forward to growing in Utah.”
The Varo Money project will create up to 331 jobs over the next five years. The total wages in aggregate are required to exceed 110 percent of the county average wage. The projected new state wages over the life of the agreement are expected to be approximately $44,500,000. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $1,681,910 over five years.
“Varo Money’s decision to expand to Utah demonstrates the power of being in front of the right company at the right time,” said Theresa Foxley, president and CEO of the Economic Development Corporation of Utah. “We welcome Varo Money to our growing fintech community.”
Varo Money may earn up to 20 percent of the new state taxes they will pay over the five-year life of the agreement in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) tax credit rebate. As part of the contract with Varo Money, the GOED Board of Directors has approved a post-performance tax credit rebate not to exceed $336,382. Each year as Varo Money meets the criteria in its contract with the state, it will earn a portion of the total tax credit rebate.
Varo Money is working closely with the local community to determine the best location for the expansion. Exact location will be determined at a future date.