Will New App “Dave” be a Game Changer?
Financial management is essential for every person, especially in the current economy. Knowing how to handle every paycheck is an important skill anyone should have. However, nobody is perfect. Sometimes we end up being caught up in financial issues that we cannot solve unless we borrow extra cash.
Borrowing and lending happen all the time. For as long as trade exists, borrowing has been the option for everyone low on cash. Borrowing is not a problem; the problem is what the terms of borrowing are. In many cases, whenever borrowing a small amount of money, there is a huge interest that comes with it. This is better shown by overdrafts. They come to save you on short notice but with a high price to pay. This is why Dave was invented.
Dave is a new App that brings us to a whole new era of how we manage our finances. In the same way that new and innovative forms of lending can be accessed from your phone, such as online title lending, Dave aims to help you whenever you need financial management.
How it works
Dave is an AI app that intelligently helps you to manage your finances. Once you download the app, it links to your bank account to understand your financial situation. At the start of every week, the app checks your account balance then makes a focus on how low your account can go over the week.
The AI intelligently does this by tracking your spending habits and getting to know how you use your money. By knowing how you spend your money every week, the AI can make a prediction on the lowest balance you can have in your account. This is done by tracking the following events:
- Pending income: The AI can predict if you have the potential to get additional income during that week. The app incorporates the pending income to your balance when making the other predictions.
- Predicted transactions: The AI knows how you spend your money by studying your past spending. Therefore, it knows things like when you pay your rent, cable TV, and other expenses. Therefore, it can anticipate that at a particular time, you will use your money to pay these bills.
- Pending transaction: These are transactions that you are already set to make. They are a guarantee that your account balance will go down. They are crucial in making the weekly predictions.
After studying these three events, the App can now make a prediction on how low your account balance can go over the week. The main goal of the app is to prevent you from making an overdraft. So, if the prediction shows that your account balance can go to the negative in that week, you get notified.
Borrowing from the app
The app gives you notifications to warn you of a low account balance. From there, you can either find a new source of income or cut down on the planned spending. When everything is impossible, the app can fund you. You are allowed to borrow as much as $250 from the app whenever you need it.
You may be wondering why we are back to borrowing again. Here is the thing about Dave. Unlike other lenders, Dave charges 0% interest. Now, this is the game changer. Once you borrow the amount you need, it formulates a repayment plan for you to follow. The payment is automatic so you don’t have to worry about anything. The app notifies in advance before money is cut from your account to repay the soft loan.
At the end of the day, no interest is paid. Almost all other lending services charge some interest fees. Typically, an overdraft has an interest of about $34 including other processing fees. At first, it may seem helpful to you, but it drains money you already don’t have. Well, at least Mark Cuban knows how problematic this can be.
He is among the top investors of this App. When asked why he wanted to support this project, he said that he had the same problems in his 20s. He reveals that he was drowning in overdraft fees that drained his account of money he did not have. He wants everyone to understand that you shouldn’t get yourself in debt to pay other debts.
Making the world a better place
The App charges a fee of $1 every month. All other services are completely free with no strings attached. However, they accept donations if you are a satisfied client. The donation is completely voluntary, and there is no specific amount set. You can donate whatever you want whenever you can.
Regarding your donations, every percentage of your loan that you set as a donation to the organization is used to plant a tree in Africa. For example, if you decide to give them a 5% tip for what you had borrowed, five trees are planted. If the tip is 7%, seven trees are planted. This is made possible through a partnership with trees.org to help the world move to a better place.
If you are ready to save money and manage your finances better, then download the App. It is available for both IOS and Android users. It is time to take charge of your finances. Every dollar counts since how you spend your money counts on how stable your life will be.
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What do you think about Dave and how beneficiary it is for individuals to manage finances? Do let us know what you think. Please share your thoughts and opinions in the comments section below:
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