Jin S. Lee
Mark Cuban is one of the initial investors in Dave.
- Dave, the Mark Cuban and Diplo-backed fintech startup, rolled out its new Dave banking service in June, announcing a $110 million raise at the same time. I tried out the online-only bank, and my feelings are very positive. I could see myself using it instead of my Chase checking account.
- It is the first checking account to partner with CreditPop, which reports a user's rent payments to credit agencies, allowing them to build credit without taking out any loans. This service could be invaluable for Dave users who are finding it challenging to build credit, and is a definite step forward in banking features.
- The service is similar to other online-only challenger banks. It offers a network of no-fee ATMs, overdraft-protection that includes the option for a $100 advance, and access to the same budgeting features that made Dave popular in the first place.
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Dave, the Mark Cuban and Diplo-backed fintech startup, rolled out its new Dave banking service in June, announcing a $110 million raise at the same time.
I reviewed their original overdraft-killing service, and felt that it had some great features. However, the app also made it very easy for users to give an optional tip that could be equivalent to the highest payday loan rates.
I tried out Dave's new banking service, and my feelings are much more positive. It works similarly to other online-only challenger banks. The user does all of their banking within the Dave app, can access a network of ATMs that require no fees for cash withdrawals, and pays no fees beyond the $1 monthly fee that's already a part of Dave's non-banking services.
The service also doesn't allow overdrafts, protecting users from aggressive fees. As of now, Dave banking is only available to users of their app, who can sign up for a waitlist.
While the market for challenger banks has become increasingly crowded, Dave banking is a little different. It is built ontop of an already popular app, giving it a built-in audience. It also is the first checking account to partner with CreditPop, which reports a user's rent payments to credit agencies, allowing them to build credit without taking out any loans. This service could be invaluable for Dave users who are finding it challenging to build credit, and is a definite step forward in banking features.