Challenger Bank Now On Track To Sign Up 1MM Customers By End of 2020(Dave)
Dave, the challenger bank on a mission to put financial minds at ease, announced an exclusive agreement with Mastercard to power its debit cards as well as new growth figures for its digital banking feature. The news comes amid increased partnerships between digital banks and established players and as more than a third (36%) of Americans plan to increase their reliance on digital banking tools as a result of the COVID-19 pandemic.
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“Given our shared commitment to bringing consumers into the digital economy through next-generation financial products, we’re excited to be working with Dave as the exclusive network for their emerging banking services.”
Launched in 2017, Dave is the finance version of David and Goliath, helping its customers by improving the cost, accessibility, and usability of the legacy financial system. In May 2020, Dave began a limited, early release roll-out of Dave Banking: an app-based spending account and Mastercard debit card with no hidden fees and no minimum balance, available only to customers.
In just two months since the rollout began, 100K customers out of the 220K invited have signed up for the early release—a 45% conversion rate from its waitlist that puts on track to sign up 1MM Banking customers by the end of 2020.
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Dave Banking customers can get up to a $100 advance at no cost from an upcoming paycheck to recharge their account and cover typical expenses like gas and groceries. Through a partnership with LevelCredit, Dave Banking customers can also build credit by reporting on-time rent and utility payments to the credit bureaus. On average, customers who use the credit-building feature boost their credit score by 50 points.
For $1 per month, all Dave customers have access to its industry-leading features, including:
- Automated Budgeting: Dave uses machine learning to tell customers how much they have available to spend until they get paid next. This automated budgeting feature displays upcoming bills and expenses like utility bills and even day-to-day expenses like a weekly pizza night.
- Helpful Texts and Alerts: When Dave’s machine learning budgeting tool anticipates an upcoming expense may cause a customer to overdraft, Dave sends a text or alert to let them know.
- “Side Hustle”: Dave has an exclusive job-finding tool called Side Hustle to help customers find side income opportunities like dog walking and tutoring. On average 500k customers per quarter apply for jobs through Dave, collectively earning more than $70mm since launching in 2019.
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