Meet “Dave”, the finance app, which predicts upcoming expenses, and issues alerts to customers when their balance is at risk. Powered by high-end artificial intelligence, Dave is saving hundreds of consumers from expensive overdraft fees and is issuing warnings about the high costs charged by the banks.
Co-founder of this Los Angeles, California-based business, Jason Wilk says the ultimate objective of Dave is to help consumers avoid bank overdrafts because it is one of the most “expensive forms of credit”. Wilk describes Dave as the “weather forecast for money management”.
Not just that, Dave is even promoting payday loans, saying that it is cheaper than bank overdrafts and more customer-friendly.
There is a lot of evidence that shows payday lending is one of the best forms of credit. Let us take a few cases and analyze them to understand why.
Case #1 – Overdraft Fees and How the Banks Abuse Their Consumers
Let’s take an example to understand this better. Assume that a person is a little short of cash and needs only $200 for say making utility payments. No conventional lending agency will offer a loan for such a small amount. So the person has to write checks for the bills, knowing that there is no money in the bank to cover the payment. This is when the bank will charge its overdraft fees.