7 ms·

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

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"