Dave
Dave user accesses their banking account.
- Dave, the Mark Cuban and Diplo-backed fintech startup that just raised $100 million, rolled out its new Dave banking service last week. I tried out its original overdraft-killing service that provides notifications when a user's account balance gets too low, and offers short-term cash advances for an optional tip.
- I loved some aspects of the app, like its feature that forecasts what users' finances will look like before their next payday.
- But overall, it was a little too easy to give an optional tip that's equivalent to a high APR.
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Dave, the Mark Cuban and Diplo-backed fintech startup, rolled out its new Dave banking service last week and said it had raised $110 million. In light of this rollout, I decided to try out their original overdraft-killing service.
Dave was created to help its users avoid overdraft fees. It does this in two ways: By providing notifications when a user's account balance gets too low, and offering short-term cash advances. The service costs $1 a month, and advances are free with an optional tip.
The concept of tipping for a financial product may be counterintuitive, but it works similarly to how tipping works in the service industry. After requesting an advance, the customer is able to add a tip of 0-25% of the amount that they are requesting. Similarly to waitstaff at a restaurant, the tip is Dave's main source of income. This tip, though optional, is highly suggested, and as we'll delve into later, could be hard for a user to fully opt out of.
Overall, I found the app to be easy to set up and use. Even with some technical difficulties (likely from my bank), I was ready to get an advance within 20 minutes. The menus make sense and are simple to navigate, and the app is easy to look at, which puts it far ahead most mobile banking apps. I especially enjoyed the feature that forecasts what users' finances will look like before their next payday.