Neobank Dave attributes record performance to AI underwriting.

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New Bank Dave He said it has improved its credit performance over the past year using artificial intelligence (AI).

Between the first quarter of 2023 and the first quarter of 2024, Dave reduced its 28-day delinquency rate from 2.60 percent to 1.83 percent, the company said. The offer It was released in conjunction with its quarterly earnings call on Tuesday (May 7).

According to the presentation, the latest figures were the lowest in Dave's history.

During the same period, the firm grew its revenues by 32 percent, the presentation said.

The presentation noted that tax refunds during the first quarter also saw initial growth of 2% despite seasonality.

Dave attributes improvements in both credit performance and origination to its AI-powered underwriting engine, CashAI.

“We believe CashAI's time-tested and data-rich ability to effectively underwrite through multiple economic cycles creates a powerful proposition that differentiates Dave from new and existing competitors,” said Dave's C.E. Oh Jason Wilk The company said during the quarterly earnings call on Tuesday.

CashAI uses bank account transaction data to assess risk, enabling Dave to track changes in income, spending, savings. And Job – and doing so in near real time, according to the presentation.

This differentiates Dave's underwriting from others, such as FICO-based credit decisions that “rely on heavily lagged bureau data that is often artificially inflated by the effects of the 2020-2021 fiscal stimulus, ” said the presentation.

“With CashAI, we've demonstrated our ability to consistently increase origination volume while improving loss rates, further justifying our ability to continue to scale,” Wilk said during the call. has created more opportunities for member value and improved monetization going forward,” Wilk said during the call.

Wilk also highlighted another AI deployment by Dave during the call: the company's generative AI assistant called DaveGPT.

DevGPT, which was launched in January, responds to customer queries, sets up direct deposits, handles account management. And The company said in January that it resolves customer issues without human assistance. News for the newspaper.

“DaveGPT has helped us reduce costs associated with member success while increasing member satisfaction and member retention, which is a win-win for our members and of the our cost structure,” Wilk said during Tuesday's earnings call. “In the first quarter of 2024, we expanded our live chat hours based on the strong resolution rates we achieved with DevGPT. of.”

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