A new financial app named Dave, which aims to prevent you from getting socked with bank overdraft fees, launched today, backed in part by well-known investor (and Dallas Mavericks owner) Mark Cuban.
Available from the Apple and Google Play app stores, “Dave” keeps track of your bank balance as well as your upcoming expenses, then lets you know when trouble may be ahead. If Dave sees you could dip to a balance below zero, it alerts you and even offers you a short-term no-interest loan (up to $250) to cover you until your paycheck arrives.
How does Dave make money from no-interest loans? It doesn’t, but it does give you the opportunity to leave a “tip” in exchange for the temporary bailout it gave you. In short, Dave is betting on your thankfulness as a revenue source. Whether that is a solid business model or not remains to be seen, but it’s a good deal for you if you sometimes live on the edge financially.