13 ms·

BankSimple: We have cards

346 points by timf 15y ago

Aloisius 15y ago
Can someone please tell me the benefits of BankSimple over all the other online banks or your local credit union? I'm afraid I don't get it.
- olivercameron 15y ago
  They list all the advantages here: https://banksimple.com/#vision https://banksimple.com/#vision In short, no surprise fee's and simple online banking (with extensive mobile support).
  - jsm386 15y ago
    Obviously different banks have different issues but Chase (third largest US by deposits) already does everything in that vision. I really don't get Bank Simple. Integrating planning in a way that looks like Mint is nice, but Mint brings in your other accounts - and if they are trying to out Mint Mint, that is a pretty tall challenge. I can't speak for other banks but I don't see anything special here. - The plain simple language bullet admits that of course there will always be legalese - Real support. I've never had trouble at any hour getting a human being on the phone, empowered to deal with my issues. Facetiming or Skyping with my bank? I really don't see the point. - Mobile from the ground up - Chase has great mobile apps that allow you to deposit checks by taking a photo. I believe other banks do as well and it seems like this will probably be pretty standard going forward. - No fees. In four years I've been hit with a surprise fee once. It has been resolved. "We provide access to the largest fee-free nationwide ATM network and our mobile app will locate an ATM closest to your current location." Not sure what that network is but is it more ATMs than Chase or BofA or Wells Fargo have?
    - eli 15y ago
      largest fee-free nationwide ATM network That's gotta be Allpoint. They run nearly all of the non-bank ATMs (Think: 7/11, pharmacies, gas stations). ING Direct has the same deal: http://app.ingdirect.com/atmlocate/index.html http://app.ingdirect.com/atmlocate/index.html That's actually a significantly worse deal than the banks and credit unions that refund ATM fees (to a point) so you can use literally any ATM on any network.
      - smackfu 15y ago
        Agreed, I have an online savings account from HSBC and they even refunded a $5 ATM fee from a Vegas casino. I just make sure to carry that ATM card with me for the cases where I need money and can't get to my bank's ATMs, and this or the Ing product don't add anything to that.
      - devicenull 15y ago
        I have an ING Direct account, and I've never been terribly happy with the allpoint ATM's. They tend to .. not look trustworthy. When you've got an awful looking ATM tucked away in a corner somewhere, I really don't want to give it all my account info.
    - noodle 15y ago
      1) their intent is to do for banking what mint did for financial information. mint wasn't the first site to do what it did, it just did it very well and sold itself well. banksimple isn't looking to solve the backend of banking, their sales pitch is a good user experience and customer support structure. 2) just because you don't have those problems doesn't mean that others don't. in the past 4 years, i've probably hit upon each of those problems. perhaps they aren't enough of a pain point for me to switch away from my bank, but they're valid points nonetheless. 3) their ATM network is the largest because its any ATM (i believe, based on what i've read). use their card in any ATM and they waive all fees. this exists in some other cards already, though usually in a limited capacity (my HSBC card waives the first 3 ATM transaction fees iirc)
- known 15y ago
  https://banksimple.com/faq/ https://banksimple.com/faq/ gives their USP
- WettowelReactor 15y ago
  Agreed. usaa.com already addresses all of these pain points.
  - younata 15y ago
    USAA is also available only to members of the military and their families (they've been getting more lax over the years, though).
    - mschwar99 15y ago
      That is apparently no longer the case. The only major services non-military are ineligible for are auto and property insurance. Eligibility description here: https://www.usaa.com/inet/pages/why_choose_usaa_eligibility_main?wa_ref=wcu_main_is_usaa_for_you https://www.usaa.com/inet/pages/why_choose_usaa_eligibility_...
      - nhangen 15y ago
        You are correct. It's just the insurance that's restricted to military. They are the best bank you'll ever use IMO.
        rdl 15y ago
        Navy FCU and Pentagon FCU are also great (and open to anyone for a charity donation of around $25). I notice a trend!
      - Goronmon 15y ago
        But from what I can tell, the smartphone deposit feature requires that you be eligible for the auto and property insurance.
- mdasen 15y ago
  In some ways, they're over-reaching. Sure, people hate the banks right now and it seems like a cash-cow industry that one could really disrupt. However, banking has a lot of competitors including not-for-profit ones in the form of credit unions. It will be very difficult to offer higher rates, better service, etc. than a non-profit credit union while one is trying to make a profit. However, if I were BankSimple and you said what you and I have said to me, I'd respond that banks are crap at IT. I'd say that we (BankSimple) are basically a better IT department for your bank. We're going to create a banking technology stack that you'll enjoy using while getting you better rates than the large banks (BofA, Chase, etc.) offer you and better terms (like ATM refunds). We're going to do this by using wholesale banking offers from FDIC-insured institutions. Will it work? Maybe. I'm skeptical. Refunding ATM fees and better terms are going to eat into margins a lot. The wholesale bank is going to take their margin. That doesn't leave much for good rates. Plus, some banks are starting to get good at IT. Wells Fargo and Bank of America have deposit-scanning ATMs. Chase has an iPhone app that lets you scan checks. When it comes to terms, I already have a bank that offers me 0.55% checking and 1.25% savings with ATM refunds. It isn't an easy road for them, but what they're trying to do is create a better technology package for users. That might mean making a card that can do both credit and debit in one card - I've wanted that. That might mean NFC payments faster than banks will support them. That might mean better Mint.com-like tools than Mint. That might be the plainer, easier to understand language they're pushing. And, even if they don't completely succeed with a retail venture, they might end up with a great OEM package for banks and credit unions to outsource their web and mobile technology stack to. Most small banks do outsource their interfaces and BankSimple might be creating the best OEM package for small banks (if/when their retail ventures fail) inadvertently in the process. I've seen plenty of banks with horrid web interfaces and very few allow for check scanning on either desktop or mobile. BankSimple could do well in the OEM market even if it fails to convince consumers of its retail ambitions. /just to clarify, I'm not affiliated with BankSimple, it was just a pleasant way of phrasing that paragraph.
  - ydant 15y ago
    In reading your second paragraph I did a bit of a double-take. You started to summarize almost exactly what Josh wrote to me in an email back when I contacted them with some questions. My point was that while I like the idea of a bank driven by new minds, ultimately I can't think of anything that they will give me that my current bank (Ally, if it's important) isn't giving me right now. So much of the banking decision for me is based on how well the bank gets out of my way, low fees, and high interest rate. My current bank manages the last two perfectly well, has excellent customer service, and the few issues I have with the web presence are minor. Josh mentioned that they won't be targeting the absolute rate chasers, but that they will be providing an experience that changes everything (my words, not his). I'm skeptical, but I've been surprised by plenty of other startups. I'm sure there's innovation to be had in the banking industry, I just don't know how much of a draw that innovation will end up being. Unfortunately every time I look at their site I don't see much that I don't get out of my current bank and my email conversation with Josh was heavy on the criticism of my current bank but light on exactly WHAT they are doing wrong. So for now I'll have to ride the hype with everyone else and just see what comes out.
- olalonde 15y ago
  The fact that it's a tech startup? Seriously, any startup that aims to disrupt our stagnant banking industry has my support.
- mixmastamyk 15y ago
  Right, there are already good alternatives to consumer-hostile banks, such as the fantastic Charles Schwab. I always recommend them to people because they pay my banking fees, are insured, ethical/reputable, pioneered the discount brokerage, and have great 24/7 customer service. They've helped me out of numerous jams over the years.
  - cpeterso 15y ago
    > Right, there are already good alternatives to consumer-hostile banks, such as the fantastic Charles Schwab. Do you mean Charles Schwab is the "good alternative" or the "consumer-hostile bank"?
    - encoderer 15y ago
      It's no longer offered, but I have a credit card from Schwab that gives me a flat 2% cashback every month on every purchase, no opt-ins every month, no tiers, no limits. The cash gets ACHd into my checking account. The card has 0% foreign exchange fees, free concierge service, 90 day price-drop match guarantee, doubles every manufacturers warranty up to 5 years (aside from things like cars), and has $0 annual fee. And the Schwab checking account isn't half bad either.
      - tentonwire 15y ago
        As another owner of this card, I have to note that Schwab is no longer "subsidizing" this card, and has completely been disassociated from it. I believe the reason was that they weren't making any money off of it, but my memory is a bit foggy now. It is now serviced by FIA Services, no longer available to new customers, and of course terms and conditions are subject to change. So far, nothing has changed, but still, the point is that this card was and is an anomaly.
        encoderer 15y ago
        The card doesn't stand alone, though. The point is there are tertiary banks that are more consumer friendly. Schwab, yes, and for them the credit crisis put their 2% card on the chopping block. But another tertiary bank, Fidelity, still offers the card that's always been like the Sister Card for the Schwab Visa: The Fidelity Amex is also an FIA card that is nearly identical in terms. It's reward structure involves tiers but it's very clearly a 2% card. And it has a 1% FETF. Aside from that, it's identical. And it doesn't change the fact that Schwab put together the terms of this card (certainly with the help of FIA) and that a more traditionally mainstream bank has not. I also have the British Airways Chase card that literally has netted me a free Biz Class ticket to Europe. Very generous. But that's a signing bonus. If I were to keep this card as my daily-driver for a couple years Chase would make a lot more money off me than Schwab ever would've off the card that's now the "FIA Cash Rewards Visa"
olivercameron 15y ago
If any industry was waiting for a startup to come along and revolutionize it, it's the banking industry.
- dublinclontarf 15y ago
  That's already happened you didn't notice (yet), it's called bitcoin.
  - beedogs 15y ago
    lol
    - code_duck 15y ago
      Good to see the older users raising the level of discourse here.
  - nzadrozny 15y ago
    You might make a case for "happening" with bitcoin, but the banking industry is far from "revolutionized" in the past-tense. Besides which, currency and customer support are two very different pieces of a much larger pie. At best, currency is the "implementation detail" behind a much larger set of day-to-day usability concerns inherent in banking.
    - dublinclontarf 15y ago
      Well given that just with the bitcoin client alone many banking services are either no longer needed or already provided by the bitcoin network. Savings, transfers(much faster than any bank transfer, I mean my bitcoin reaches it's destination before I can finish filling in the bank transfer forms), security. All there. I don't need customer support when there's no problems. I've never had something so easy to use to buy on the internet before.
      - philfreo 15y ago
strlen 15y ago
The use of the phrase leaning into it is highly appreciated.
RexRollman 15y ago
BankSimple sound interesting but they will have to be offering something really awesome for me to even remotely consider doing business with a commercial bank ever again. (There days, I only deal with credit unions.)
- jonprins 15y ago
  They themselves aren't a bank. They partner up with banks that provide FDIC insured products. They just provide the customer service and the user interface.
  - r00fus 15y ago
    This may sound like a perfect match, but honestly most banks can't be trusted: http://www.amazon.com/Best-Way-Rob-Bank-Own/dp/0292706383 http://www.amazon.com/Best-Way-Rob-Bank-Own/dp/0292706383 BankSimple, not being terribly large, can't force the incumbents to play their game (like say, Apple could with AT&T to some degree - and they got lucky getting in with Cingular). It will be interesting to see how this fares when the "financial service" supplier(s) starts yanking the chain.
    - mseebach 15y ago
      What exactly would the chain-yanking look like? "Make your online banking suck!" "Charge random fees in an opaque manner!" "Make your customer service worse!" ? And if they do have their chains yanked, they can switch their provider. It's not like banks have "coverage" to lock you in, like mobile networks.
- cagenut 15y ago
  agreed, someone needs to start a 'creditunionsimple' (and figure out a better name).
  - skyo 15y ago
    How about SimpleCU
- 15y ago
truthseeker 15y ago
I am surprised that so many people are willing to open a bank account with someone you've never heard of. I couldn't even find if they are FDIC insured. I know several friends who wouldn't use mint.com. For them, it is a single point of failure. You can explain all the technical details you want but there is no way to get past their fears. When shit hits the fan, you can expect the US govt. to bail out Bank Of America. SimpleBank? I am not so sure.
- jonprins 15y ago
  It's right on their page. Under 'Find a new alternative:' "However, BankSimple is not a "bank." We partner with chartered banks who provide FDIC-insured products, leaving us free to concentrate on designing the complete consumer banking experience, via the web and your smartphone."
  - RexRollman 15y ago
    I hope that never leads to a "hot potatoe" situation when there is a problem.
    - lotusleaf1987 15y ago
      FUD.
      - owenmarshall 15y ago
        Sure, it might be fear, uncertainty, and doubt on the part of adopters. But rightly so -- if there's one place where people are going to be conservative, it's with their banks. The very first thing I did when I hit BankSimple.com was CTRL+F "FDIC". One tiny mention in a blog preview 2/3ds of the page down. That doesn't cut it. It's BankSimple's job to inspire confidence in their offering. Their front page seems to spends more time talking in vague terms about how their service is going to be mobile centric, and how they're going to put me first. What their service is all about, and how it works -- the things I care about -- are buried and quite vague.
      - 15y ago
steve_b 15y ago
I've always wondered why after winning something (or in this case, getting 50k sign ups), people say "I'm humbled." I think the truth would be the opposite: "Wow, looks like I'm pretty awesome after all."
- edash 15y ago
  http://en.wiktionary.org/wiki/false_modesty http://en.wiktionary.org/wiki/false_modesty
  - gbog 15y ago
    Yes, and it becomes to be a kind of cliché here and around. We could list them. Years ago we had the "X reasons to" lists, now we have "I'm very humble to be the best". It is a "preciosity" (not sure if this word applies correctly in English, I need to read Les Précieuses Ridicules, Molière, in English to make sure). Really intersting guys like PG do not usually have these preciosities themselves, but it is something that flourish during interesting times (like was Molière's).
- lurker14 15y ago
  It's either misuse of English, or deliberate double-talk. Original: http://www.jewishsightseeing.com/jewish_humor/punchlines_and_their_jokes/2006-06-01-Number%2054.htm http://www.jewishsightseeing.com/jewish_humor/punchlines_and...
- ronnoch 15y ago
  In some ways the more awesome you are the more humility you have to signal, to avoid seeming arrogant.
- brianpan 15y ago
  Success (like getting a startup off the ground) takes a lot more than just personal skill/intelligence/hardwork- there's fortunate timing and circumstances, the hardwork and contributions of others, time and monetary investment of others, plain old chance luck. Recognizing that some part your achievements depended on others and things beyond your control both requires humility and can humble you. That's not a bad state of mind, and it doesn't have to be just false modesty.
bluegene 15y ago
In traditional banking, UX is an afterthought but from what I see, for BankSimple, banking takes the backseat but UX rules. I say this coz there's no details on FDIC, interest rates, etc. IMO, instead of doing Banking; they can sell their product to banks
- fossuser 15y ago
  "BankSimple account plus BankSimple debit card replaces your existing personal bank account. Make deposits, withdraw cash, pay bills, earn interest, and more. However, BankSimple is not a "bank." We partner with chartered banks who provide FDIC-insured products, leaving us free to concentrate on designing the complete consumer banking experience, via the web and your smartphone. "
orijing 15y ago
As I understand it, banks make a large amount of revenues from fees and such. How will BankSimple succeed if it doesn't use that? How will overdrafts work? Will the check just not go through? I love that they are trying to revolutionize the banking industry, and I wish them well. But I'm afraid that they'll succumb to adverse selection to the greatest degree. The reality is that most of a bank's customers are not profitable (without the fees), which is why they institute these ridiculous fees to either drive them off or make them profitable. If BankSimple can make these previously-unprofitable people profitable again without surprise fees, they'll be a great success. Let's hope that happens.
- mahyarm 15y ago
  The 1.5% they get from every single credit (and debit) card transaction as the issuing bank. I also understand that they'll have no branch locations. My local credit union has no fee checking and savings accounts, and in the years of using them they have only given me fees for the occasional coverdraft and absolutely nothing else. Just like how netflix is usurping cable companies $100 bills for a $10 + Internet bill, they'll do just fine.
  - i2pi 15y ago
    It's actually closer to 1.1% of card transactions (our cards are debit cards). We also earn income as we pay out interest to our customers. We'll do fine.
  - aquark 15y ago
    Do debit cards typically incur the same fees as credit cards? I thought many places here (Canada) accepted debit but not credit because it was a fixed fee per transaction not a %
    - mahyarm 15y ago
      In the US (and the UK I believe), debit card transactions are done through mastercard/visa and can incur similar fees. You can also type your debit card number on online purchases and it will work correctly, vs. interac where that doesn't work. Interac is very nice for retailers in canada since it's just one flat .25 fee for any transaction, just limited by your daily card limit.
achompas 15y ago
I'm pulling for BankSimple's success thanks to the abysmal nature of banking customer service. Hidden fees, long wait times on phone calls, ATM fees, ridiculous procedures to dispute charges... With that said, how is BankSimple anything but a middleman? In my eyes, they fill one of two potential roles: 1. They're a customer service wrapper for banks, which means banks pay them to provide support. So banks are their customers, right? 2. They actually manage your money for you---a "broker for personal accounts." How do they generate revenue in this case? #1 and #2 are both problematic. In a way, I'm the opposite of Aloisius: I clearly see BankSimple's benefits (Mint + support + SmartyPig), but I cannot understand how they will generate revenue while staying loyal to customers.
- thomasgerbe 15y ago
  I've had a very different experience with customer service. I was able to do a lot of things like dispute charges, change address, and get information very easily on the phone with less than outlandish waiting times. And I never incurred ATM fees either by using ATM's from my bank or just by using a credit card when I didn't have any cash. The only real advantage I'd want is more ATM availability and higher interest rates. Otherwise, I can't say I've had that bad of an experience with a bank.
- jrockway 15y ago
  I cannot understand how they will generate revenue while staying loyal to customers By skimming off a percentage of the interest your money is earning in their institutional account.
  - achompas 15y ago
    I thought about this, but I wonder if it is legal given that they're not a financial institution. Alternatively, what kind of margin would they take off? 50 basis points? 100? Interest rates are already low, so a small cut right now looks very big to consumers. EDIT: posts above suggest BankSimple will offer better rates than industry competitors. Where are the margins, then?
    - 15y ago
DanI-S 15y ago
I'd love to see someone like this be the first place to seamlessly incorporate a Bitcoin exchange into personal banking.
paulitex 15y ago
Only 4 days after losing their Lead Engineer. http://twitter.com/#!/KirinDave/status/70217986962751488 http://twitter.com/#!/KirinDave/status/70217986962751488
- Lewisham 15y ago
  That's a tweet that suggests acrimonious split if I've ever seen one.
  - tptacek 15y ago
    Yes, clearly it means the opposite of what it says, because Dave is like that. I love drama, don't you?
    - KirinDave 15y ago
      After all, I am known for my reserved, duplicitous, and very guarded twitter account.
  - phlux 15y ago
    Twitter blocked by evil firewall at work. What does this tweet say?
    - kanak 15y ago
      "I've stepped down from my position as lead engineer of BankSimple. I wish them good luck, with or without me." by KirinDave (Dave Fayram)
    - mikeklaas 15y ago
      > I've stepped down from my position as lead engineer of BankSimple. I wish them good luck, with or without me.
- newman314 15y ago
  Anyone know the reason why? I'm not asking because the popcorn factor but rather to understand if there's something fundamentally broken about the concept & company.
jimktrains2 15y ago
So, this prob isn't the place, but instead of cards or short range radio, I thought plugging into headphone jacks and having the phone do transactions (akin to what short range radio would do). Doesn't require any modification to phone and is backwards compatible with almost all phones (that have their won sdk (Symbian, iOS, Android, RIM) or use J2ME or BREW. I wouldn't be able to bring this up myself (I just do code, hardware and banking is beyond me at times), but I would never object to being included with people who could:-D Anyway, ::shrug::, just thought I'd place the idea out there since I feel it's good and like to see someone do it.
meterplech 15y ago
This is very intelligently done. I'm glad they are releasing the cards to just a small set of people first to check that everything works. People are very wary of any issues with their money/with their bank and absolutely any problem at the beginning would seriously hurt user adoption. Start slow and make sure it works.
- foobarbazetc 15y ago
  How is this "intelligent" and not obvious, common sense before you roll out a bank?
  - thinkcomp 15y ago
    But I thought BankSimple wasn't a bank, despite the confusing name.
    - palish 15y ago
      "BankSimple: Personal banking from a company that respects you." That's not a bank?
      - salver4m 15y ago
        From the FAQ: So, what’s the deal... are you really a bank? We are not a bank. We work with partner banks (soon to be announced) to provide FDIC insured products. What this means for you is that your money is safely insured with our partners. Our wholesale partners provide the financial products, we provide the customer service and experience.
        dreamdu5t 15y ago
        They're "simple" but they like to play semantics. I mean, really, they have "bank" in the name and they provide banking services. To me, the consumer, they are a bank.
      - stellar678 15y ago
evo_9 15y ago
Interesting idea. I wish it were 'MortgageSimple' though - the mortgage industry is in serious need of an overhaul even more than banks right now.
hvass 15y ago
Competition is always good!
uniclaude 15y ago
This sounds great. Props to them if they can disrupt banking. The fact that they're not a real bank but some entity that works with partners to provide FDIC insured products is reassuring from a customer point of view. Not sure about how they will do their marketing though. Now, I hope that we, non-American customers, won't have to wait too long for this service.
reftvfds112 15y ago
Poor site design. I can't read the vision statement. White out. Fixit. Simple
oofabz 15y ago
What's the big deal about BankSimple? They look about the same as most credit unions. My credit union has a good website & iPhone app, and doesn't charge hidden fees. They pay interest on my checking account.
Aloisius 15y ago
Wait. I think I get it now. They're like mint, but with account management?
zitterbewegung 15y ago
Is it just me or does it seem sort of odd that they don't mention the FDIC anywhere on the page (whether they will be insured) You can't advertise that you will be FDIC insured?
- eridius 15y ago
  See the FAQ (https://banksimple.com/faq/ https://banksimple.com/faq/). > Will my deposits be insured by the FDIC? > Yes, all deposits will be insured to the FDIC limit (currently $250,000) through our partner banks at launch, just like with any other major bank (or credit union through the NCUA). FDIC insurance guarantees the safety of your deposits.
- pbreit 15y ago
  It's you.
c00p3r 15y ago
Looking at what they have on github convinces me that they will fail. They are playing with Javascript and Java toys. This is a wasting of time and money. ^_^
joshfraser 15y ago
Judging by the IIN of the card in the picture it looks like they are using Visa behind the scenes.
pbreit 15y ago
I think BankSimple is going to struggle to find customers with its current proposition. The fact is that people are not as unhappy with their banks' fees, customer support or websites as BankSimple thinks (or at least suggests). People like branches and brands. The one thing people do like is products which is how ING broke into the business but an approach that BankSimple appears not to be pursuing.

346 points by timf 15y ago

Can someone please tell me the benefits of BankSimple over all the other online banks or your local credit union? I'm afraid I don't get it.

olivercameron 15y ago
They list all the advantages here: https://banksimple.com/#vision https://banksimple.com/#vision In short, no surprise fee's and simple online banking (with extensive mobile support).
- jsm386 15y ago
  Obviously different banks have different issues but Chase (third largest US by deposits) already does everything in that vision. I really don't get Bank Simple. Integrating planning in a way that looks like Mint is nice, but Mint brings in your other accounts - and if they are trying to out Mint Mint, that is a pretty tall challenge. I can't speak for other banks but I don't see anything special here. - The plain simple language bullet admits that of course there will always be legalese - Real support. I've never had trouble at any hour getting a human being on the phone, empowered to deal with my issues. Facetiming or Skyping with my bank? I really don't see the point. - Mobile from the ground up - Chase has great mobile apps that allow you to deposit checks by taking a photo. I believe other banks do as well and it seems like this will probably be pretty standard going forward. - No fees. In four years I've been hit with a surprise fee once. It has been resolved. "We provide access to the largest fee-free nationwide ATM network and our mobile app will locate an ATM closest to your current location." Not sure what that network is but is it more ATMs than Chase or BofA or Wells Fargo have?
  - eli 15y ago
    largest fee-free nationwide ATM network That's gotta be Allpoint. They run nearly all of the non-bank ATMs (Think: 7/11, pharmacies, gas stations). ING Direct has the same deal: http://app.ingdirect.com/atmlocate/index.html http://app.ingdirect.com/atmlocate/index.html That's actually a significantly worse deal than the banks and credit unions that refund ATM fees (to a point) so you can use literally any ATM on any network.
    - smackfu 15y ago
      Agreed, I have an online savings account from HSBC and they even refunded a $5 ATM fee from a Vegas casino. I just make sure to carry that ATM card with me for the cases where I need money and can't get to my bank's ATMs, and this or the Ing product don't add anything to that.
    - devicenull 15y ago
      I have an ING Direct account, and I've never been terribly happy with the allpoint ATM's. They tend to .. not look trustworthy. When you've got an awful looking ATM tucked away in a corner somewhere, I really don't want to give it all my account info.
  - noodle 15y ago
    1) their intent is to do for banking what mint did for financial information. mint wasn't the first site to do what it did, it just did it very well and sold itself well. banksimple isn't looking to solve the backend of banking, their sales pitch is a good user experience and customer support structure. 2) just because you don't have those problems doesn't mean that others don't. in the past 4 years, i've probably hit upon each of those problems. perhaps they aren't enough of a pain point for me to switch away from my bank, but they're valid points nonetheless. 3) their ATM network is the largest because its any ATM (i believe, based on what i've read). use their card in any ATM and they waive all fees. this exists in some other cards already, though usually in a limited capacity (my HSBC card waives the first 3 ATM transaction fees iirc)
known 15y ago
https://banksimple.com/faq/ https://banksimple.com/faq/ gives their USP
WettowelReactor 15y ago
Agreed. usaa.com already addresses all of these pain points.
- younata 15y ago
  USAA is also available only to members of the military and their families (they've been getting more lax over the years, though).
  - mschwar99 15y ago
    That is apparently no longer the case. The only major services non-military are ineligible for are auto and property insurance. Eligibility description here: https://www.usaa.com/inet/pages/why_choose_usaa_eligibility_main?wa_ref=wcu_main_is_usaa_for_you https://www.usaa.com/inet/pages/why_choose_usaa_eligibility_...
    - nhangen 15y ago
      You are correct. It's just the insurance that's restricted to military. They are the best bank you'll ever use IMO.
      - rdl 15y ago
        Navy FCU and Pentagon FCU are also great (and open to anyone for a charity donation of around $25). I notice a trend!
    - Goronmon 15y ago
      But from what I can tell, the smartphone deposit feature requires that you be eligible for the auto and property insurance.
mdasen 15y ago
In some ways, they're over-reaching. Sure, people hate the banks right now and it seems like a cash-cow industry that one could really disrupt. However, banking has a lot of competitors including not-for-profit ones in the form of credit unions. It will be very difficult to offer higher rates, better service, etc. than a non-profit credit union while one is trying to make a profit. However, if I were BankSimple and you said what you and I have said to me, I'd respond that banks are crap at IT. I'd say that we (BankSimple) are basically a better IT department for your bank. We're going to create a banking technology stack that you'll enjoy using while getting you better rates than the large banks (BofA, Chase, etc.) offer you and better terms (like ATM refunds). We're going to do this by using wholesale banking offers from FDIC-insured institutions. Will it work? Maybe. I'm skeptical. Refunding ATM fees and better terms are going to eat into margins a lot. The wholesale bank is going to take their margin. That doesn't leave much for good rates. Plus, some banks are starting to get good at IT. Wells Fargo and Bank of America have deposit-scanning ATMs. Chase has an iPhone app that lets you scan checks. When it comes to terms, I already have a bank that offers me 0.55% checking and 1.25% savings with ATM refunds. It isn't an easy road for them, but what they're trying to do is create a better technology package for users. That might mean making a card that can do both credit and debit in one card - I've wanted that. That might mean NFC payments faster than banks will support them. That might mean better Mint.com-like tools than Mint. That might be the plainer, easier to understand language they're pushing. And, even if they don't completely succeed with a retail venture, they might end up with a great OEM package for banks and credit unions to outsource their web and mobile technology stack to. Most small banks do outsource their interfaces and BankSimple might be creating the best OEM package for small banks (if/when their retail ventures fail) inadvertently in the process. I've seen plenty of banks with horrid web interfaces and very few allow for check scanning on either desktop or mobile. BankSimple could do well in the OEM market even if it fails to convince consumers of its retail ambitions. /just to clarify, I'm not affiliated with BankSimple, it was just a pleasant way of phrasing that paragraph.
- ydant 15y ago
  In reading your second paragraph I did a bit of a double-take. You started to summarize almost exactly what Josh wrote to me in an email back when I contacted them with some questions. My point was that while I like the idea of a bank driven by new minds, ultimately I can't think of anything that they will give me that my current bank (Ally, if it's important) isn't giving me right now. So much of the banking decision for me is based on how well the bank gets out of my way, low fees, and high interest rate. My current bank manages the last two perfectly well, has excellent customer service, and the few issues I have with the web presence are minor. Josh mentioned that they won't be targeting the absolute rate chasers, but that they will be providing an experience that changes everything (my words, not his). I'm skeptical, but I've been surprised by plenty of other startups. I'm sure there's innovation to be had in the banking industry, I just don't know how much of a draw that innovation will end up being. Unfortunately every time I look at their site I don't see much that I don't get out of my current bank and my email conversation with Josh was heavy on the criticism of my current bank but light on exactly WHAT they are doing wrong. So for now I'll have to ride the hype with everyone else and just see what comes out.
olalonde 15y ago
The fact that it's a tech startup? Seriously, any startup that aims to disrupt our stagnant banking industry has my support.
mixmastamyk 15y ago
Right, there are already good alternatives to consumer-hostile banks, such as the fantastic Charles Schwab. I always recommend them to people because they pay my banking fees, are insured, ethical/reputable, pioneered the discount brokerage, and have great 24/7 customer service. They've helped me out of numerous jams over the years.
- cpeterso 15y ago
  > Right, there are already good alternatives to consumer-hostile banks, such as the fantastic Charles Schwab. Do you mean Charles Schwab is the "good alternative" or the "consumer-hostile bank"?
  - encoderer 15y ago
    It's no longer offered, but I have a credit card from Schwab that gives me a flat 2% cashback every month on every purchase, no opt-ins every month, no tiers, no limits. The cash gets ACHd into my checking account. The card has 0% foreign exchange fees, free concierge service, 90 day price-drop match guarantee, doubles every manufacturers warranty up to 5 years (aside from things like cars), and has $0 annual fee. And the Schwab checking account isn't half bad either.
    - tentonwire 15y ago
      As another owner of this card, I have to note that Schwab is no longer "subsidizing" this card, and has completely been disassociated from it. I believe the reason was that they weren't making any money off of it, but my memory is a bit foggy now. It is now serviced by FIA Services, no longer available to new customers, and of course terms and conditions are subject to change. So far, nothing has changed, but still, the point is that this card was and is an anomaly.
      - encoderer 15y ago
        The card doesn't stand alone, though. The point is there are tertiary banks that are more consumer friendly. Schwab, yes, and for them the credit crisis put their 2% card on the chopping block. But another tertiary bank, Fidelity, still offers the card that's always been like the Sister Card for the Schwab Visa: The Fidelity Amex is also an FIA card that is nearly identical in terms. It's reward structure involves tiers but it's very clearly a 2% card. And it has a 1% FETF. Aside from that, it's identical. And it doesn't change the fact that Schwab put together the terms of this card (certainly with the help of FIA) and that a more traditionally mainstream bank has not. I also have the British Airways Chase card that literally has netted me a free Biz Class ticket to Europe. Very generous. But that's a signing bonus. If I were to keep this card as my daily-driver for a couple years Chase would make a lot more money off me than Schwab ever would've off the card that's now the "FIA Cash Rewards Visa"

olivercameron 15y ago

If any industry was waiting for a startup to come along and revolutionize it, it's the banking industry.

dublinclontarf 15y ago
That's already happened you didn't notice (yet), it's called bitcoin.
- beedogs 15y ago
  lol
  - code_duck 15y ago
    Good to see the older users raising the level of discourse here.
- nzadrozny 15y ago
  You might make a case for "happening" with bitcoin, but the banking industry is far from "revolutionized" in the past-tense. Besides which, currency and customer support are two very different pieces of a much larger pie. At best, currency is the "implementation detail" behind a much larger set of day-to-day usability concerns inherent in banking.
  - dublinclontarf 15y ago
    Well given that just with the bitcoin client alone many banking services are either no longer needed or already provided by the bitcoin network. Savings, transfers(much faster than any bank transfer, I mean my bitcoin reaches it's destination before I can finish filling in the bank transfer forms), security. All there. I don't need customer support when there's no problems. I've never had something so easy to use to buy on the internet before.
    - philfreo 15y ago

strlen 15y ago

The use of the phrase leaning into it is highly appreciated.

RexRollman 15y ago

BankSimple sound interesting but they will have to be offering something really awesome for me to even remotely consider doing business with a commercial bank ever again. (There days, I only deal with credit unions.)

jonprins 15y ago
They themselves aren't a bank. They partner up with banks that provide FDIC insured products. They just provide the customer service and the user interface.
- r00fus 15y ago
  This may sound like a perfect match, but honestly most banks can't be trusted: http://www.amazon.com/Best-Way-Rob-Bank-Own/dp/0292706383 http://www.amazon.com/Best-Way-Rob-Bank-Own/dp/0292706383 BankSimple, not being terribly large, can't force the incumbents to play their game (like say, Apple could with AT&T to some degree - and they got lucky getting in with Cingular). It will be interesting to see how this fares when the "financial service" supplier(s) starts yanking the chain.
  - mseebach 15y ago
    What exactly would the chain-yanking look like? "Make your online banking suck!" "Charge random fees in an opaque manner!" "Make your customer service worse!" ? And if they do have their chains yanked, they can switch their provider. It's not like banks have "coverage" to lock you in, like mobile networks.
cagenut 15y ago
agreed, someone needs to start a 'creditunionsimple' (and figure out a better name).
- skyo 15y ago
  How about SimpleCU
15y ago

truthseeker 15y ago

I am surprised that so many people are willing to open a bank account with someone you've never heard of. I couldn't even find if they are FDIC insured. I know several friends who wouldn't use mint.com. For them, it is a single point of failure. You can explain all the technical details you want but there is no way to get past their fears. When shit hits the fan, you can expect the US govt. to bail out Bank Of America. SimpleBank? I am not so sure.

jonprins 15y ago
It's right on their page. Under 'Find a new alternative:' "However, BankSimple is not a "bank." We partner with chartered banks who provide FDIC-insured products, leaving us free to concentrate on designing the complete consumer banking experience, via the web and your smartphone."
- RexRollman 15y ago
  I hope that never leads to a "hot potatoe" situation when there is a problem.
  - lotusleaf1987 15y ago
    FUD.
    - owenmarshall 15y ago
      Sure, it might be fear, uncertainty, and doubt on the part of adopters. But rightly so -- if there's one place where people are going to be conservative, it's with their banks. The very first thing I did when I hit BankSimple.com was CTRL+F "FDIC". One tiny mention in a blog preview 2/3ds of the page down. That doesn't cut it. It's BankSimple's job to inspire confidence in their offering. Their front page seems to spends more time talking in vague terms about how their service is going to be mobile centric, and how they're going to put me first. What their service is all about, and how it works -- the things I care about -- are buried and quite vague.
    - 15y ago

steve_b 15y ago

I've always wondered why after winning something (or in this case, getting 50k sign ups), people say "I'm humbled." I think the truth would be the opposite: "Wow, looks like I'm pretty awesome after all."

edash 15y ago
http://en.wiktionary.org/wiki/false_modesty http://en.wiktionary.org/wiki/false_modesty
- gbog 15y ago
  Yes, and it becomes to be a kind of cliché here and around. We could list them. Years ago we had the "X reasons to" lists, now we have "I'm very humble to be the best". It is a "preciosity" (not sure if this word applies correctly in English, I need to read Les Précieuses Ridicules, Molière, in English to make sure). Really intersting guys like PG do not usually have these preciosities themselves, but it is something that flourish during interesting times (like was Molière's).
lurker14 15y ago
It's either misuse of English, or deliberate double-talk. Original: http://www.jewishsightseeing.com/jewish_humor/punchlines_and_their_jokes/2006-06-01-Number%2054.htm http://www.jewishsightseeing.com/jewish_humor/punchlines_and...
ronnoch 15y ago
In some ways the more awesome you are the more humility you have to signal, to avoid seeming arrogant.
brianpan 15y ago
Success (like getting a startup off the ground) takes a lot more than just personal skill/intelligence/hardwork- there's fortunate timing and circumstances, the hardwork and contributions of others, time and monetary investment of others, plain old chance luck. Recognizing that some part your achievements depended on others and things beyond your control both requires humility and can humble you. That's not a bad state of mind, and it doesn't have to be just false modesty.

bluegene 15y ago

In traditional banking, UX is an afterthought but from what I see, for BankSimple, banking takes the backseat but UX rules. I say this coz there's no details on FDIC, interest rates, etc. IMO, instead of doing Banking; they can sell their product to banks

fossuser 15y ago
"BankSimple account plus BankSimple debit card replaces your existing personal bank account. Make deposits, withdraw cash, pay bills, earn interest, and more. However, BankSimple is not a "bank." We partner with chartered banks who provide FDIC-insured products, leaving us free to concentrate on designing the complete consumer banking experience, via the web and your smartphone. "

orijing 15y ago

As I understand it, banks make a large amount of revenues from fees and such. How will BankSimple succeed if it doesn't use that? How will overdrafts work? Will the check just not go through? I love that they are trying to revolutionize the banking industry, and I wish them well. But I'm afraid that they'll succumb to adverse selection to the greatest degree. The reality is that most of a bank's customers are not profitable (without the fees), which is why they institute these ridiculous fees to either drive them off or make them profitable. If BankSimple can make these previously-unprofitable people profitable again without surprise fees, they'll be a great success. Let's hope that happens.

mahyarm 15y ago
The 1.5% they get from every single credit (and debit) card transaction as the issuing bank. I also understand that they'll have no branch locations. My local credit union has no fee checking and savings accounts, and in the years of using them they have only given me fees for the occasional coverdraft and absolutely nothing else. Just like how netflix is usurping cable companies $100 bills for a $10 + Internet bill, they'll do just fine.
- i2pi 15y ago
  It's actually closer to 1.1% of card transactions (our cards are debit cards). We also earn income as we pay out interest to our customers. We'll do fine.
- aquark 15y ago
  Do debit cards typically incur the same fees as credit cards? I thought many places here (Canada) accepted debit but not credit because it was a fixed fee per transaction not a %
  - mahyarm 15y ago
    In the US (and the UK I believe), debit card transactions are done through mastercard/visa and can incur similar fees. You can also type your debit card number on online purchases and it will work correctly, vs. interac where that doesn't work. Interac is very nice for retailers in canada since it's just one flat .25 fee for any transaction, just limited by your daily card limit.

achompas 15y ago

I'm pulling for BankSimple's success thanks to the abysmal nature of banking customer service. Hidden fees, long wait times on phone calls, ATM fees, ridiculous procedures to dispute charges... With that said, how is BankSimple anything but a middleman? In my eyes, they fill one of two potential roles: 1. They're a customer service wrapper for banks, which means banks pay them to provide support. So banks are their customers, right? 2. They actually manage your money for you---a "broker for personal accounts." How do they generate revenue in this case? #1 and #2 are both problematic. In a way, I'm the opposite of Aloisius: I clearly see BankSimple's benefits (Mint + support + SmartyPig), but I cannot understand how they will generate revenue while staying loyal to customers.

thomasgerbe 15y ago
I've had a very different experience with customer service. I was able to do a lot of things like dispute charges, change address, and get information very easily on the phone with less than outlandish waiting times. And I never incurred ATM fees either by using ATM's from my bank or just by using a credit card when I didn't have any cash. The only real advantage I'd want is more ATM availability and higher interest rates. Otherwise, I can't say I've had that bad of an experience with a bank.
jrockway 15y ago
I cannot understand how they will generate revenue while staying loyal to customers By skimming off a percentage of the interest your money is earning in their institutional account.
- achompas 15y ago
  I thought about this, but I wonder if it is legal given that they're not a financial institution. Alternatively, what kind of margin would they take off? 50 basis points? 100? Interest rates are already low, so a small cut right now looks very big to consumers. EDIT: posts above suggest BankSimple will offer better rates than industry competitors. Where are the margins, then?
  - 15y ago

DanI-S 15y ago

I'd love to see someone like this be the first place to seamlessly incorporate a Bitcoin exchange into personal banking.

paulitex 15y ago

Only 4 days after losing their Lead Engineer. http://twitter.com/#!/KirinDave/status/70217986962751488 http://twitter.com/#!/KirinDave/status/70217986962751488

Lewisham 15y ago
That's a tweet that suggests acrimonious split if I've ever seen one.
- tptacek 15y ago
  Yes, clearly it means the opposite of what it says, because Dave is like that. I love drama, don't you?
  - KirinDave 15y ago
    After all, I am known for my reserved, duplicitous, and very guarded twitter account.
- phlux 15y ago
  Twitter blocked by evil firewall at work. What does this tweet say?
  - kanak 15y ago
    "I've stepped down from my position as lead engineer of BankSimple. I wish them good luck, with or without me." by KirinDave (Dave Fayram)
  - mikeklaas 15y ago
    > I've stepped down from my position as lead engineer of BankSimple. I wish them good luck, with or without me.
newman314 15y ago
Anyone know the reason why? I'm not asking because the popcorn factor but rather to understand if there's something fundamentally broken about the concept & company.

jimktrains2 15y ago

So, this prob isn't the place, but instead of cards or short range radio, I thought plugging into headphone jacks and having the phone do transactions (akin to what short range radio would do). Doesn't require any modification to phone and is backwards compatible with almost all phones (that have their won sdk (Symbian, iOS, Android, RIM) or use J2ME or BREW. I wouldn't be able to bring this up myself (I just do code, hardware and banking is beyond me at times), but I would never object to being included with people who could:-D Anyway, ::shrug::, just thought I'd place the idea out there since I feel it's good and like to see someone do it.

meterplech 15y ago

This is very intelligently done. I'm glad they are releasing the cards to just a small set of people first to check that everything works. People are very wary of any issues with their money/with their bank and absolutely any problem at the beginning would seriously hurt user adoption. Start slow and make sure it works.

foobarbazetc 15y ago
How is this "intelligent" and not obvious, common sense before you roll out a bank?
- thinkcomp 15y ago
  But I thought BankSimple wasn't a bank, despite the confusing name.
  - palish 15y ago
    "BankSimple: Personal banking from a company that respects you." That's not a bank?
    - salver4m 15y ago
      From the FAQ: So, what’s the deal... are you really a bank? We are not a bank. We work with partner banks (soon to be announced) to provide FDIC insured products. What this means for you is that your money is safely insured with our partners. Our wholesale partners provide the financial products, we provide the customer service and experience.
      - dreamdu5t 15y ago
        They're "simple" but they like to play semantics. I mean, really, they have "bank" in the name and they provide banking services. To me, the consumer, they are a bank.
    - stellar678 15y ago

evo_9 15y ago

Interesting idea. I wish it were 'MortgageSimple' though - the mortgage industry is in serious need of an overhaul even more than banks right now.

hvass 15y ago

Competition is always good!

uniclaude 15y ago

This sounds great. Props to them if they can disrupt banking. The fact that they're not a real bank but some entity that works with partners to provide FDIC insured products is reassuring from a customer point of view. Not sure about how they will do their marketing though. Now, I hope that we, non-American customers, won't have to wait too long for this service.

reftvfds112 15y ago

Poor site design. I can't read the vision statement. White out. Fixit. Simple

oofabz 15y ago

What's the big deal about BankSimple? They look about the same as most credit unions. My credit union has a good website & iPhone app, and doesn't charge hidden fees. They pay interest on my checking account.

Aloisius 15y ago

Wait. I think I get it now. They're like mint, but with account management?

zitterbewegung 15y ago

Is it just me or does it seem sort of odd that they don't mention the FDIC anywhere on the page (whether they will be insured) You can't advertise that you will be FDIC insured?

eridius 15y ago
See the FAQ (https://banksimple.com/faq/ https://banksimple.com/faq/). > Will my deposits be insured by the FDIC? > Yes, all deposits will be insured to the FDIC limit (currently $250,000) through our partner banks at launch, just like with any other major bank (or credit union through the NCUA). FDIC insurance guarantees the safety of your deposits.
pbreit 15y ago
It's you.

c00p3r 15y ago

Looking at what they have on github convinces me that they will fail. They are playing with Javascript and Java toys. This is a wasting of time and money. ^_^

joshfraser 15y ago

Judging by the IIN of the card in the picture it looks like they are using Visa behind the scenes.

pbreit 15y ago

I think BankSimple is going to struggle to find customers with its current proposition. The fact is that people are not as unhappy with their banks' fees, customer support or websites as BankSimple thinks (or at least suggests). People like branches and brands. The one thing people do like is products which is how ING broke into the business but an approach that BankSimple appears not to be pursuing.