VirtualBank

About VirtualBank

Operating as a division of First Horizon Bank, VirtualBank is a digital-only bank that provides its services entirely online. The bank's history includes its founding by John Textor, who served as a founding director. A significant milestone in its journey was the acquisition by First Horizon Bank, which inherited VirtualBank through its merger with Iberiabank in 2020. Following the acquisition, First Horizon partnered with technology company Wipro to transform VirtualBank's legacy systems into a modern, cloud-based platform with API-enabled offerings, a project that took about eight months to complete.

The business model is centered on providing financial products to individual consumers through a digital-first approach, which allows for lower overhead costs compared to traditional banks with physical branches. This structure enables VirtualBank to offer competitive interest rates on its products. The bank's primary revenue stream is generated from the net interest margin on its deposit and lending products. The target market consists of digitally savvy consumers who are comfortable managing their finances online and are seeking higher yields on their savings.

VirtualBank’s main offerings are eMoney Market accounts and Certificates of Deposit (eCDs). The eMoney Market account is a high-yield savings option that requires a minimum deposit of $100 to open. It offers a competitive Annual Percentage Yield (APY) and allows customers to start earning interest with a minimal balance. Features of the digital banking experience include online access to check balances, transfer funds between VirtualBank and external accounts, view e-statements, and pay bills. The mobile banking application, available for iOS and Android, includes features like mobile check deposit and biometric login for enhanced security.