Dave Selects Washington-Based Coastal Community as Sponsor Bank

Neobank Dave selected Washington-based Coastal Community Bank as a sponsor bank for its banking products and its ExtraCash demand deposit account.

The neobank’s customers will begin onboarding to Coastal Community Bank as soon as the second quarter, Dave and the bank’s holding company, Coastal Financial Corp., said in a Monday (March 3) press release.

The partnership with Coastal Community Bank and its banking-as-a-service (BaaS) division, CCBX, will accelerate Dave’s business growth and expansion, according to the release.

“Coastal Community Bank is the right partner for our company because of their 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,” Dave CEO and Founder Jason Wilk said in the release.

CCBX President Brian Hamilton said in the release, speaking of the partnership with Dave: “From our first discussions with their team, it was clear that we are aligned in bringing accessible, transparent financial services to traditionally underbanked populations.”

Once Dave has completed a beta launch and is enrolling all new customers, Coastal Community Bank will be Dave’s exclusive provider of program features contemplated by the agreement for new customers and, within 24 months of that time, Dave will transition its existing customers to Coastal, according to Dave’s March 3 filing with the Securities and Exchange Commission.

Dave said in a November press release that its banking partner at the time was Evolve Bank & Trust.

In that same release, Dave said it had entered a non-binding letter of intent to form a strategic partnership with a bank and that it would publicly announce its new sponsor bank partner after entering into definitive agreements.

“Given the scale we’ve achieved and the strong member growth we continue to experience, we believe it is the right time to further diversify our key commercial relationships,” Wilk said in the Nov. 12 press release.

During a November earnings call, Wilk said Dave’s new sponsor bank is “one of the most highly respected FinTech sponsor banks” and that it will allow Dave to launch at least one new credit product in 2025.