Dave predicts consumer checking account balances and offers customer-friendly paycheck advances to help prevent overdrafts, along with other banking services.
More than a quarter of Americans have overdrafted their account in the past year, with 10% of those people having overdrafted more than eight times. In 2017, U.S. banks made more than $34 billion in overdraft fees alone.
Dave – named after “that friend everyone has who spots you some cash when you need it” – alerts users in advance and can help prevent overdrafts by instantly advancing the user up to $75 at zero percent interest. Dave also:
- Notifies users of important overdraft information via text message, so that they don’t have to keep tabs on overdraft activity on their own.
- Connects directly with users’ checking accounts, and then looks for recurring trends in each user’s spending and income via a set of predictive algorithms.
- Provides a percentage of the user’s upcoming paycheck up to 10 days ahead of time.
FINANCIAL HEALTH FOCUS
Many overdrafts are the result of transactions of less than $20 because people are only looking at current balances, not future ones. Dave believes that predicting and eliminating overdraft fees can improve financial health.