Fintech Dave Inc. plans to use Coastal Financial as its primary banking partner and eventually drop Evolve Bancorp, which has grappled with
Dave isn't a bank but offers bank-like products such as checking accounts and "ExtraCash," which gives customers as much as $500 without credit checks, interest or late fees. In order to offer those products, Dave must partner with a bank, which has been Evolve Bank & Trust.
Coastal Financial's Coastal Community Bank arm will instead serve as Dave's sponsor bank, including for the ExtraCash product, according to a statement Monday. Customer accounts will begin moving to the new bank in the second quarter, Dave said in the statement.
In making the switch, Dave Chief Executive Officer Jason Wilk cited Coastal's "customer-first mission, deep knowledge across credit and banking products, strong risk management, and our shared ambition to make a difference in the communities that need it most."
Last year was challenging for Evolve. Regulators hit the bank with an enforcement action over its risk management and it was enmeshed in the bankruptcy of fintech Synapse Financial Technologies, a collapse that's triggered closer scrutiny of the relationships fintechs maintain with banks. Evolve is one of several banks that work with fintechs that were hit with enforcement actions last year. Evolve was also hacked last year, with customer data stolen.
Dave
