Dave, the mobile personal finance application that helps individuals avoid overdraft charges, is moving into the banking market, announcing the launch of Dave Banking.
It is the latest challenger bank to launch in the United States following on the heels of Monzo of the U.K. last week.
Focused on the younger generations, Dave Banking helps prospects construct their credit by automatically reporting everyday funds, including hire and utility bills. The service, which costs nearly $120 a year, is free to users who deposit their paycheck into the Dave Banking account. The checking account also gives clients with a $100 no-interest overdraft protection, accessible regardless of the consumer’s current credit score.
In conjunction with the announcement of its bank, the LA startup that counts Mark Cuban as an investor raised $110 million in debt led by Victory Park Capital. Co-founder and chief govt Jason Wilk stated the corporate is in talks with investors about raising more capital at a valuation of close to $1 billion.
Dave, which has 3.5 million customers, additionally partners with gig economy firms to provide users with part-time job opportunities in their area. The concept is to be a banking friend to the legions of people who are living paycheck to paycheck, are wary of traditional banks or need a digital experience from their banking associate. The CEO mentioned Dave could differentiate itself from the other banking FinTechs due to its give attention to ache factors in the banking market. “We’ve seen individuals approaching FinTech with different angles. There’s micro investing and no charge trading. Focusing on the overdraft, budgeting, and earnings creation is a profitable technique,” Wilk mentioned.