Brigit automatically transfers up to $250 into a user’s account to help them avoid overdraft fees. It claims to save them – on average – $514 a year in overdraft fees.
The cash advance provider, offering an alternative to payday loans, charges $9.99 a month for its Plus Plan, which offers instant credit, as well as identity fraud insurance.
Founded in 2017, Brigit’s CEO – a former Deutsche Bank and Infosys executive – runs the start-up alongside co-founder and chief technology officer, Hamel Kothari, an ex-Palantir Technologies engineer.
Brigit isn’t the only fintech offering cash advances in the US market. UK challenger bank Chime allows users to overdraw up to $100 without fees through its SpotMe feature… And fintech app Dave charges its users $1 a month to cover overdraft fees of up to $75. Both Dave and Chime give users the option to tip the fintechs… Brigit argues, however, that these aren’t direct competitors. Largely because its co-founder Mathews is sure he doesn’t want the fintech to become a digital bank.