268: How Mark Cuban backed Dave.com Is Outsmarting Overdraft Fees
But today, I invited him onto the show to talk about his brand new FinTech app Called Dave! The app helps millennials by predicting future expenses and preventing negative balances with a unique spin on borrowing money.
Dave exists because its creators think it’s fundamentally wrong to kick people when they’re down. A coffee should not end up costing you $38 after overdraft and bank fees.
The Problems Dave.com Is Trying To Solve:
- More than 25% of Americans overdrafted in the past 12 months. And 10% have overdrafted more than 8x.
- 17,000% APR is the typical interest rate associated with overdraft fees. Compare that to Dave, which offers advances on your paycheck for 0% interest.
- The vast majority of overdrafts happen on small purchases, like a McDonald’s Happy Meal or a recurring expense like Netflix. Dave alerts you ahead of time and can instantly advance up to $75 at 0% interest to prevent overdraft.
- Big banks made $33B in overdraft fees in 2016 alone.
Upon connecting any checking account, Dave instantly analyzes trends from an individual’s bank history and displays their ‘7 Day Low’, a number which represents the lowest Dave forecasts your account balance will get in the next week. It’s like a weather report for your checking account. If your ‘7 Day Low’ dips below $0, Dave notifies you to take action.
“We invented this new type of account balance because a current balance just doesn’t mean anything if your Netflix bill is due tomorrow and your rent check is going to be cashed tonight.” says Dave CEO Jason Wilk, who is working with Mark Cuban on their 3rd company together.
I chat to Jason Wilk about how Dave.com is aiming to outsmart overdrafts and the story behind the name of this new FinTech App.