The raise was led by Victory Park Capital and will help to scale the company as it grows from a personal finance app into a challenger bank in the US.
Dave Banking has been billed as the first account to automatically build credit by reporting everyday payments like rent and utility bills to the credit agencies. The account also provides a $100 no interest overdraft advance to cover budget gaps, which is available regardless of a user’s current credit score.
Jason Wilk, co-founder and CEO of Dave, said:
“Banks have failed their customers by building products that put their own interests ahead of the humans who use them. People don’t need predatory fees, they need tools that actually solve their challenges around credit building, finding work and getting access to their own money to cover immediate expenses. Dave is the banking product that works with its customers, not against them.”
Dave Banking accounts will be opened with Dave’s partner bank, Evolve Bank & Trust. The account charges no monthly fees, no overdraft fees and lets people start an account for free using a debit card.