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Chatbot developer Kasisto Inc. has agreed to provide a so-called smartbot for Varo Money Inc., a San Francisco-based provider of a mobile-only banking app. Both the app and the bot are in beta testing and expected to launch early next year.
The new bot, called Val, is based on conversational artificial-intelligence software developed by New York City-based Kasisto on its KAI banking platform. Kasisto has been concentrating on the banking market for chatbots. In October, MasterCard Inc. said it is working with the company to develop a bot for issuers that will work on Facebook Messenger and allow cardholders to get answers to questions about spending, offers, and other matters.
Founded only in November 2015, Varo Money is aiming its app squarely at the Millennial market. It calls Val a “digital-money coach” that will work through text messaging and advise users and make recommendations based on their accounts, transactions, budgets, and goals. If given a greenlight by the user, the bot can also take actions on the user’s behalf, Varo Money says.
The company cites statistics from Graylock Partners indicating that two-thirds of the 85 million Millennials rely on mobile banking, scanning their screens 45 times a day. “We are transforming banking to improve the financial lives for a generation of consumers often overlooked by traditional banks,” said Colin Walsh, chief executive and cofounder of Varo Money, in a statement.
“Thousands” of users have signed up for early access to the Varo Money app, according to the company. Sign-up is available at Varo Money’s Web site.
The startup has arranged for private-label mobile checking and savings account products through the Bancorp Bank, with Galileo Processing Inc. for payments processing, with Socure Inc. for digital-identity verification, and with Cachet Financial Solutions Inc. for mobile check deposit.
