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BankSimple invites first customers; rebrands itself as Simple
- cleverjake 15y agoAh, wonderful. I hope I can get in soon. I've been waiting forever. Congrats to them for finally getting public.
- cynicalkane 15y agoI thought BankSimple was a great brand, because it tells you what it is and fits well with the current zeitgeist. What is "BankSimple?" A way to bank that's simple. Sounds interesting! Everyone hates how complicated banking is, right? Let's go to the website to find out more. What is "Simple?" Who knows. A website that has something to do with banking--or so I'm told--with yet another web 2.0 one-word "brand", a really uninspiring one too. Hey, I wonder what's on Reddit.
- gyardley 15y agoWhatever Simple is, I suspect it doesn't have to comply with every single state's regulations on exactly what can call itself a bank.
- schraeds 15y agoMint, Square, Ally. I think the naming convention fits other examples of successful startups in this space.
- chc 15y agoEh, Ally isn't just "Ally Inc," it's "Ally Financial," and it uses the term "Ally Bank" in advertising its banking services. And Mint doesn't do banking at all — they're purely an analytics service.
- gojomo 15y ago'Ally' is not a successful startup. Ally is the rebranded GMAC, whose founding dates back to 1919. GMAC was renamed (and officially transformed into a registered bank) as part of a series of changes which included receiving over $16 billion in federal bailout assistance. http://en.wikipedia.org/wiki/Ally_Financial http://en.wikipedia.org/wiki/Ally_Financial Though I suppose 'Ally' was a spectacular renaming, and their advertising is working, if it gives people the impression Ally is a can-do startup!
- samstave 15y agoAvoid GMAC (Ally now) like the plague. Rife with fraud internally (My mother used to work there and told some horrible stories of how they screwed over customers).
- rapind 15y agoColor...
- vaporstun 15y agoWhile I think this may be true at first, if they gain any critical mass, the "Bank" in BankSimple would become redundant and wasteful. I think it is good and forward looking to rebrand it Simple before launch so that becomes synonymous with banking. Imagine if Google was instead called GoogleSearch? Google became synonymous for Search and therefore the Search portion of their name is superfluous. I for one applaud this move and think the branding is nice, clean, and, of course, simple ;)
- evan_ 15y agoLike how the "bank" in "Bank of America" is redundant and wasteful? To clarify, I don't really care either way- I'm sure they had other reasons for dropping the "Bank" from their name, especially since they're not really a bank.
- tdoggette 15y agoWells Fargo and Suntrust are well-known banks, too.
- corin_ 15y agoOfficial name "SunTrust Bank", owned by "SunTrust Banks, Inc." Official name "Wells Fargo Bank, N.A." owned by "Wells Fargo & Company".
- chc 15y agoThat's precisely the point vaporstun was making — we commonly omit the "Bank" from those names because it's seen as redundant.
- corin_ 15y agoBut I was replying to tdoggette not vaporstun, who was making (I think) the opposite point. So my response was to point out that actually the banks we think of as not having "bank" in the name do, and it hasn't stopped us from referring to them without it. So if they stuck with Bank Simple, it would help people initially understand what they do, then once (if) they become a household name, people could refer to them as "Simple". Of course, this is all ignoring the whole legislation stuff.
- benatkin 15y ago> What is "Simple?" Shoes.
- stefs 15y agobut only shoes with velcro straps, binding bootlaces is complicated.
- al3x 15y agoThe "Bank" in "BankSimple" was problematic for us. We're technically not a bank. We also don't want to be associated with the way people have approached banking, particularly in the US. Sorry you're not crazy about the new name, but we're happy with it. It gives us a lot of room to grow.
- Umalu 15y agoThere are actually laws prohibiting non-banks from using the word "bank" in their name. A lot of bank holding companies (which are not, technically, banks) got around this by replacing the "k" in "bank" with a "c" -- such as "BancAmerica Corp". I'm sure we all breathed a sigh of regulatory relief seeing that "c" there.
- al3x 15y agoYup. Those laws are pretty loosely enforced and vary on a state-by-state basis, but they're definitely a concern.
- deleted 15y ago[deleted]
- rapind 15y ago1-600-DOCTORB ("The B is for 'Bargain'")
- nickpinkston 15y agoThanks Dr. Nick!
- dman 15y agoIs avoiding regulation as simple as changing what you call yourself?
- steve918 15y agoIf the regulation governs naming, then yes.
- rapind 15y agoI preferred BankSimple too, but I guess having Bank in the name would present too many problems. Simple seems very generic, no offense guys.
- al3x 15y agoNone taken. "Simple" is a generic term, and it's up to us to build it into a strong brand over time.
- rapind 15y agoWhich I'm sure you will. Looks like a great idea and I look forward to the day you come to Canada. By the way, the on-page anchors in your footer aren't working atm (#features, #vision, #sign-up, etc.).
- firefoxman1 15y agoThis may be one of the few times I like the original name better than the one a company re-brands itself as. I wish companies could so something like a pretend re-brand and make a fake post on their blog, submit it to HN and then see what the feedback is before just jumping in. HN provides some of the best and most brutal feedback I've seen in a community that simply can't be replicated by a focus group or board meeting.
- kleiba 15y agoIn some regions of Germany, the noun "Simpel" means idiot (it still means "simple" as an adjective). Also note that the spelling is slightly different, but the pronunciation is pretty much the same. Just in case these guys ever want to reach around the globe...
- oemera 15y agoCan I who told you that? I'm German and I have never heard that "Simpel" as the German noun is associated with idiot or idiotic thinks. Simpel just means simple. Maybe it is not seen like the simpleness which American people try to express with the word but either it just means simple. I love to have more simpleness in Germany. Please do consider to expand to Germany or Europe!
- jamesbritt 15y agoSame in English; calling someone "simple" is short for "simple-minded" or "a simpleton". Don't hear it used much though, and it's unlikely to be the first thing that pops into someone's head.
- citizencain 15y agoYou have a cheesy nickname, so it doesn't count. An organization that handles money doesn't need to be experimental on the name. I think it needs to be more on the safe side. It's money after all.
- app7399 15y agoThat is akin to asking: "What is 'Apple'? A fruit company?"
- steve8918 15y agoDoes someone know exactly what they are? If we deposit money with them, how do we know we will get our money back? What does it mean when they say: "we're not a bank, but we deposit your money in FDIC-insured funds"? I'm all for introducing new types of banking entities, and I'm willing to even try this company out, but in the age of post-Madoff and personally having my identity stolen, how do I know who these guys are, and that they will protect my money and my information?
- noodle 15y ago> What does it mean when they say: "we're not a bank, but we deposit your money in FDIC-insured funds"? it means that "simple"/"banksimple" is not a bank itself. you deposit your funds through their interface into actual banks while simple provides an interface to track and visualize your money. thats my understanding, at least. they definitely can't bill themselves as a bank when they aren't one.
- esrauch 15y agoDoesn't that mean that you don't actually get any of the legal protections (insurance and assurances) that comes with keeping your money in a bank or credit union?
- noodle 15y agohttps://www.simple.com/faq/ https://www.simple.com/faq/ > your cash is deposited with our bank partners in FDIC-insured products.
- steve8918 15y agoI still don't get it. When I deposit $1000 into Simple, will I get a statement from Simple or the "banking partner". Can I go directly to the "banking partner" and withdraw my money or must I always go through Simple?
- 15y ago
- smarmius 15y agoHonestly, I don't understand this rebranding. Are they making things other than banking simple? I love the idea of making banking more simple and easier, and that's why I thought their previous name, BankSimple, was better. Can someone help me understand this?
- spencerfry 15y agoMaybe things like healthcare and benefits?
- adestefan 15y agoI have a feeling there are jurisdictions where they would be regulated if they used the name BankSimple and took peoples' money.
- roc 15y agoI think this is just a PR (over-)reaction to the current negative image of "banks" and provides some space between Simple and the "banking" practices it skewers in its marketing. (It is somewhat problematic to say "banks are bad for you" and "we're not a bank" when your name screams "we're a bank") I guess it's also somewhat logically defensible, since FDIC-insured credit unions are just as qualified to be Simple's back-end partners. Though it still feels like a dodge, given how foggy the relationship is between Simple and their partner institutions. It feels like they want people to not think about Simple accounts supporting places like BofA, while still being free to partner with BofA in the background. That said, I wonder if they've considered a "community-focused" account option, where people can specify that they only want their funds to be deposited with credit unions, accepting whatever slightly worse terms come with less competition.
- al3x 15y agoHi, cofounder of Simple here. It's extremely unlikely that we'd ever partner with an institution like BofA. We chose bank partners who are comfortable with our vision, and that includes not charging outrageous fees and engaging in other customer-hostile practices. The big banks have shown time and again that they're not in business to act in the best interest of their customers, and that makes them poor partners for us. We don't currently have plans to allow customers to select the institution with which their funds reside, but it's something we'll take under consideration. Thanks for your thoughts.
- smackfu 15y agoI wonder if there were issues with calling themselves BankX when they are not regulated as a bank. Edit to add, there are definite laws against this in some states, for instance CT (I'm not sure if this would apply in this case, but it's indicative of what is out there): "No partnership, common law trust or association, or individual using a trade name, shall use, either as a part of its name or as a prefix or suffix thereto or as a designation of the business carried on by it, the word "bank", "banking", "banker", "bankers", "trust" or "savings", " http://www.cga.ct.gov/2011/pub/chap620.htm#Sec35-2.htm http://www.cga.ct.gov/2011/pub/chap620.htm#Sec35-2.htm
- al3x 15y agoThat was a concern, but not the sole reason for our rebranding.
- deleted 15y ago[deleted]
- cfontes 15y agoHow did they got hold of such a generic domain ? how much did it cost ? was it still freely available ? I agree some of my friends here in HN and also think BankSimple.com was way better than Simple.com But good luck anyways, you are doing something I wish I could do here in Brazil without behind crushed. Cheers
- buro9 15y agoI'm not sure I understand the proposition now. Who is the relationship with? As in... who has my money? I read it as them hiding that from you for simplicity... you get this one interface and customer service which is wonderful, but to achieve this they are the proxy to your bank? So... do they set up the bank accounts, or do you? Do you have the ability to go straight to your bank, or does Simple preclude that ability? In this text: > Simple is not a bank. Simple replaces your bank. We build the services and support you need to manage, understand, and automate your everyday spending and saving. Meanwhile, we integrate with chartered banks who manage your deposits in FDIC-insured products. We take care of you, our partner banks take care of your money, and jointly, we’ve designed a better financial experience. I come out confused. Who has the money, can I go straight to them to get it? That's the missing bit of clarity that would make me feel the love (trust).
- smackfu 15y agoI think the idea is: What if you took mint.com, and instead of interfacing with hundreds of banks, you interface with a single bank. You can integrate much more closely and provide a better experience, and the customer shouldn't really care what the underlying bank is.
- finisterre 15y agoI wonder if the Mint team ever thought of going that route; they were/are very well placed to lead users into this model. Once you get used to the idea of being able to see all your accounts and varies metrics in one place it's obvious to appreciate being able to push data the other way and instigate transfers and bill payments from that nice central hub. Maybe the complications of getting the banks on board was the barrier.
- burnstek 15y agoThe problem is that most customers do care what the underlying bank is, especially given the events over the past few years. The world may have been ready for this five years ago, but not anymore.
- kristaps 15y agoAny info on how much the domain cost?
- hemancuso 15y agoBurning money on outrageously priced domain names instead of executive bonuses. I love it!
- al3x 15y agoHi, cofounder of Simple here. It wasn't a cheap domain, but our investors felt it was worth the expense. It's memorable, flexible, and to-the-point. We're generally not a profligate company, but we felt strongly about this.
- hemancuso 15y agoSeriously, I love it :) Good luck!
- kr1shna 15y agoI for one, love the branding. I think this is a leap forward in banking. I don't get why so many people are confused about the concept or don't like the name. Seriously...who cares about a statement or where it comes from? Those are old paradigms that need to be destroyed. Good job, Simple! I'm just sad that I can't get in the UK.
- lforrest 15y agoI love it too. Good job, guys. Can't wait for my invite.
- astrong 15y agohow much was it ? I'm guessing $800,000
- beforebeta 15y agoAnyone notice the name "Joeseph Schumpeter" on the sample card? Its a reference to Schumpeter's Creative Destruction - further implying them to be in the process of destroying the old ways of doing things (in this case banking) with a radically different approach. Love it!
- nickik 15y agoWhere? I cant find it. But I think its a fantastic idea. I really love the idea of "Creative Destruction". The people who always go "but that will cost jobs blabla" always pisses me off because they only see the bad and not the good. Until we hit "real" AI there will be alot more work to be done.
- burnstek 15y agoThis move strikes me as being a little too quaint for a financial service. I can't tell what I'd be signing up for. While their language is very friendly, it's also obtuse, and that doesn't foster trust.
- al3x 15y agoWhat questions would you like us to answer, or where do you think we can be more specific? We're always trying to improve the way we explain what we do, so we're open to suggestions :)
- damoncali 15y agoCan I withdraw my money directly from the partner bank, and is it in an account with my name on it?
- i2pi 15y agoYes - we provide you with the account & routing numbers so that you have direct access to your funds at the underlying account. (Josh - CEO, Simple)
- i2pi 15y agoOn the naming of the account, it is a little more complicated. Everyone gets, at least, two accounts with us. One is a joint account, that is named 'Simple', but titled for the benefit of (FBO) our customers. But titling it such, all FDIC insurance flows through to the individual customers. In addition to the co-mingled account, everyone gets an individual interest baring account, which is directly titled in the name of the customer. Either way, you can access your funds at any time. In the case of the co-mingled account, we generate pseudo-account numbers that correspond to your portion of that account. It is a complicated answer, but unfortunately, banking is complex. We do a lot of heavy lifting on the back end to make it as simple as possible for you.
- 15y ago
- warmfuzzykitten 15y agoDo you really want to let Simple take care of your money?
- ganeumann 15y agoYes. Yes I do. I put my money into a bank and take it out when I want to spend it. I look at my statement to see where I spent it. It's simple. There is absolutely nothing else I want a bank to do for me. I do want a clean and useful mobile-optimized interface, a friendly and helpful customer service staff, and to not be charged a penalty (sorry, 'fee') every time I make a mistake. That's the Simple proposition. Why would you want it to be complicated?
- lhnn 15y agoI don't get what the confusion is. "Simple" (generic name, weak branding..) is a middle-man between banks and you. Why? -They have multiple backend banks, so I suppose that keeps you the customer from getting locked into one bank's crappy fee policy. -They can focus on customer satisfaction and UI rather than be bogged down by becoming a "real" bank. Any doubts about their trustworthiness because they're not a bank is nothing but FUD, since they explicitly stated multiple times that your money is in a bank.
- al3x 15y agoSorry that you think the name is "weak" and "generic", but I'm glad that you get what we're doing. "Simple" is definitely a generic term, but brands are built over time. Personally, I love our new logo (by our own @3n), and I think it'll resonate when you start seeing it on actual debit cards and such :)
- lhnn 15y agoIt's easy to talk shit on the Internet... Obviously, I support your business idea, and I look forward to it shaking banks up a bit. If the product is strong enough, a generic brand won't kill the business. I still believe BankSimple was a better name (in my opinion), as it actually positioned you as a new player in a game to change the status quo. I can understand if there were potential legal issues with a non-bank calling itself a bank. If this is the reason a change was made, then I'm wasting my keystrokes. Send me a beta invite!
- eavc 15y agoMy thinking is that an innovative, abstract replacement for banking will either float or sink on the strength of its offering and subsequent word-of-mouth. My mother wouldn't ever sign up for this on her own regardless of what it's called, but in time, I might be able to get her to use it if it's good. A descriptive brand name is almost irrelevant for a company like this. Now, the other angle here is that banking might simply be their entree into the abstraction business at large. So maybe today I bank through Simple, but in a few years I buy insurance through them. And maybe my cell phone plan. There's a lot of confusion and noise interfering with the efficiency of consumer markets as mediums of value exchange. Abstraction, quantification, and objective selection could be a neat way to cut down on some of the inefficiency, misinformation, and confusion.
- jason_slack 15y agoI hope I get an invite too. I requested one from the start...
- ck2 15y agoWhoa - what did that domain name cost them.
- kevinherron 15y agoGreat! Why haven't I gotten my invite yet? :)
- kr1shna 15y agoHow soon can we something like this in Europe?
- Joeri 15y agoThe banking market in europe is not as unified. Simple would have to approach europe country by country. For example, retail banking in italy is nearly ten times as expensive as in the netherlands. There's a study by the EU on this topic: http://ec.europa.eu/consumers/rights/docs/study_bank_fees_en.pdf http://ec.europa.eu/consumers/rights/docs/study_bank_fees_en...
- kr1shna 15y agoIt is a horrible mess here, which is a great service like Mint.com can't be provided either.
- mhd 15y agoA pan-European, unified solution would indeed be rather hard to do, but even going country by country you could earn quite some money. Start with the UK (fewer i18n and support problems), then probably the countries who are paying for the rest of the EuroZone right now.
- basseq 15y agoMy checking account is fundamentally a revolving cash account between a portion of my paycheck and my monthly bills (cc, mortgage, utilities, etc.). Other than autopay bills, all my purchases go through my credit card (which is then another autopay against my checking acct.). I manage all this at a macro level through Mint. I never visit my bank website, partly because it sorta sucks, but partly because I have no reason to—I really just care about the balance. Additional views would be nice, but I need it at the macro level to incorporate all my accounts (which Mint, admittedly, falls short on). I don't use my debit card for anything other than ATM cash. My checklist for a checking account is pretty short: 1. No fees. (Including ATM fees. I'm reimbursed if a third-party charges one, too.) 2. Smartphone check deposit. 3. Features / Customer Service / Interest Rate, etc. Simple's down in that third bucket (and they don't meet criteria #1).
- bradleyland 15y agoSimple's FAQ says no fees: https://www.simple.com/faq/ https://www.simple.com/faq/ Although you may be referring to third-party ATM fees. I'm curious which banks still reimburse for third-party ATM fees. Can you share the name of your bank?
- 286c8cb04bda 15y agoNot the OP, but I have a bank account at Schwab[1], and they refund all ATM fees that other banks charge. [1] http://www.schwab.com/ http://www.schwab.com/
- deltaqueue 15y agoThis is correct for their high-yield investor checking account (don't let the name fool you, the interest is a fraction of a percent). This account requires a credit check and a linked brokerage account; although, I don't think that brokerage requires a minimum balance. While I hold options, my cash balance is ~$3. Anecdote: I have been with Schwab for years and love their offering. One weekend in Vegas I accumulated something like $150 in ATM fees and they refunded every penny of it. Like Alex said, this was only possible through previous trade commissions/fees they've generated from me.
- adamio 15y agoI already have a checking account. The website interface works. Its not trendy glossy HTML5, but that's ok because my money isn't handed over to a third party who gets to profit off its interest on my behalf. What problem are you solving? The user interface for bank's sites are not good? So you are a different user interface and all I have to do is put my money in a black box? Who is funding these startups, wow. I have no confusion over the terms of my checking account, its already simple.
- al3x 15y agoThere's a whole bunch of problems we're solving. More, really, than fits in an HN comment. You're right that user experience is a primary concern for us. The interface that most people have their financial data is extremely poor. This makes answering questions about your financial life slow and clumsy, if it's even possible given the tools your bank provides. That keeps a lot of people from making the right financial decisions to stay debt-free and grow their savings. To your point about your checking account: many checking accounts don't actually have simple terms. Increasingly, they're full of hidden fees and complex conditions. More broadly, we're doing what we're doing because many banks aren't investing in design, technology, and customer service. Instead, they're investing in new ways to squeeze as much money as they can out of their customers without innovating. We're here to continuously experiment and improve. That may mean that we're not the right banking solution for everyone, but we think a lot of people are going to like what we've built.
- deleted 15y ago[deleted]
- adamio 15y agoOk fair. With Simple I can have a nifty way to view my expenses and have no hidden fees. The cost to me is nothing out of pocket, but I have to let Simple manage my money. I can see being more useful than a prepaid visa card for (college)kids, but it seems rather limiting to compete with standard checking accounts.
- 15y ago
- AznHisoka 15y agoPeople aren't compelled to try a financial service to spend more wisely. They're compelled to try it because it "earns" them more (more interest, cash back, etc). Might be the same thing, fundamentally, but psychologically, it's not. Greed is good.
- al3x 15y agoHi, cofounder of Simple here. Some people are driven to change banks because of interest rates, but those people are not the majority. Most people change banks around major life events: moving, getting married, getting your first job, etc. Or, they change banks when they have an extremely negative experience with their current bank. Either way, changing banks is a hassle, and we really have to make it easy and compelling. But interest/rewards aren't the only motivation, or even the primary motivation, for switching one's bank according to bank industry research.
- csears 15y agoI suspect the (Bank)Simple guys went down the list like this when deciding on their new domain... SimpleFinanceTechnologyCorp.com (too long) SimpleFinanceTechnology.com (long, but register anyway) SimpleFinanceTech.com (meh) SimpleFinance.com (already taken) Simple.com (perfect!)
- Lewisham 15y agoDid anyone else see this in the FAQ? Who can use Simple? To be eligible, you must: - Be a resident of the United States and over the age of 18; - Have a Social Security number; and - Own a smartphone (iPhone or Android). Do I really need to have a smartphone? Well, you need to have an iOS (version 4.2 or higher) or Android device. Android phones and iPhones are preferable so that you can deposit checks using your smartphone’s camera and receive push notifications when you buy things. I can't believe you need a smartphone to sign up. That seems absolutely crazy to me. Why can't you just accept scanned checks from a scanner? I would hazard more people have access to a scanner (even the one at work) than own a smartphone.
- TylerE 15y agoI'd hazard a guess that you're wrong. Dedicated scanners became totally obsolete for 99% of users with the switch to digital photography.
- al3x 15y agoHi, cofounder of Simple here. We require a smartphone for more than just mobile check deposit. We want people to have our app installed so we can use it for multifactor authentication, for example. We also want to do rich push notifications of account activity, and SMS (the only viable non-smartphone option for that) isn't a great experience. Today, there's still a bunch of people who don't have smartphones. But the previous generation of iPhone is now basically "free" at some carriers, as are many Android phones. By the time we're off our invite list and open to anyone who wants to sign up, it's going to seem crazy to support anything that isn't a smartphone.
- Lewisham 15y agoAha! Multifactor authentication is an integral part of the service. That's a USP. You should put it right in that FAQ. A number of Internet banks used to say "hey, you could mail us checks, or you know, just keep a brick-and-mortar account open and transfer them over." The way the FAQ reads to me is that Simple are a bit bloody-minded about it, what if I never get checks? (I must have had about 2 or 3 this year, total). Then I wouldn't need a smartphone, but Simple would still not let me sign up. Saying things like multifactor authentication would help push the idea that the smartphone is really required, rather than just something helpful.
- martian 15y agoFrom the Simple FAQ: Q: Are you like Mint? A: No. ... Also, we hate pie charts. Couldn't agree more.
- gourneau 15y agoDear Simple Folks, may I please have an invite? Thanks!
- losvedir 15y agoSigh, still waiting for an invite. Got an email in October of last year saying I could get an account "at some point [this] year", so hopefully soon. One question, though, I can't find on the site, is whether I receive any interest. And, if so, at what rate?
- al3x 15y agoYou will receive interest. In fact, we automatically move your money around behind the scenes so you earn as much interest as possible. I don't know when we'll start publishing our interest rates, but we have some additional info about interest rates on our FAQ: https://www.simple.com/faq/ https://www.simple.com/faq/
- corin_ 15y agoHi Alex - in a previous comment you said: > When you get your Simple card, it'll say "issued by {Bank Name}" on the back. How does that fit around moving money around behind the scenes? Will each customer's money be limited to a single bank, and moved around between account types? Will all Simple's customers be using one bank that you have partnered with? If not, could one Simple account actually have its funds stored between multiple different banks (or multiple accounts within a single bank)? And when you say "we automatically move your money..." are we talking about the automated equivilent of when a bank phones / writes to you saying "looking at your behaviour over the last 5 years this account might fit you better...", or is it more like "every day your money might move somewhere else", or (I assume this) where between those two? If I weren't English then I'd be signing up for sure, good luck :)
- i2pi 15y agoGreat question. Josh, CEO of Simple, here. The way it works is the card gets linked to an account on signup. This account is a non-interest bearing card account. When you deposit funds, we place those funds in other accounts. The other accounts are determined by what products we have available from our partner banks, and your historic usage patterns. For example, if you start spending less, we'll move more of your money into an interest bearing account so that you can benefit from your financial restraint. As you spend money, we (in real time) move funds to the card account from your other accounts to cover the cost of anything you buy using the card. As our portfolio of financial products grow, we'll continually rebalance your money across these products to maximize your return. This system automates what most people try to achieve, but banks make difficult to do: namely, earn as much interest on money you have and pay as little interest on money you borrow. We do this because it is the right thing to do for our customers & quite easy for a computer to manage. Other banks don't do this because they earn significant revenue when people make mistakes in managing their money. We have none of those punitive fees, so our interests are aligned with our users. (PS: I'm in London right now. What's up with English Bacon??)
- powertower 15y agohttps://www.simple.com/ https://www.simple.com/ Seriously broken website, at least it is in IE8.
- jamgraham 15y agoLooks like most invites will go out in 2012. http://twitter.com/#!/ryansnyder http://twitter.com/#!/ryansnyder
- phi1618 15y agoInteresting concept, but I'm skeptical how successful it can be. Banks are trying to get more money out of customers, in large part, to compensate for the costs of cyber-theft. Banks would rather reimburse your stolen money and recapture it through xyz fee, than lose your confidence. Simple does nothing to solve the bigger issue of our insecure networks. From what I've seen, they're no different from any other company offering online banking services. Add in the fact that they don't have any physical collateral, and maybe they're even more vulnerable than traditional banks...
- al3x 15y agoHi, cofounder of Simple here. Do you have data on banks increasing fees to combat the expense of "cyber-theft"? That's a new one to me. Banks have mostly been raising fees because new legislation in the US has cut into their interchange revenue. Plus, the cost of building and maintaining physical branches remains high, and foot traffic to those branches is decreasing. I'm not sure what you mean by "physical collateral", but we do take steps above and beyond what many banks offer to make our systems and our customers more secure. We're offering multi-factor authentication, and we participate in rigorous internal and third-party security audits. In some ways, our partner-based model improves our security stance. Our systems never touch sensitive data like customer debit card numbers. I appreciate your concerns about security. Please understand that it's a top priority for us.
- ohyes 15y agoSo... lets say someone hacks my Simple account (or simply phishes the password) and drains all of its funds. What happens then?
- al3x 15y agoHi, cofounder of Simple here. We're in the same position that your current bank is in when it comes to fraud and theft: we're insured for it, and we follow industry-standard practices when something bad happens. Most likely, what would happen is: 1. You realize that your account has been compromised. 2. You call us up. 3. We investigate your claims with our partners. 4. You get reimbursed. 5. If there was a security flaw on our side that we can fix to prevent this from happening in the future, we do so. We have a comprehensive security review process and participate in internal and external (third-party) security audits. We're also taking steps to make it more difficult for attackers to compromise your account through multi-factor authentication and other mechanisms. If you have any other questions about our security practices, please contact us: hello@simple.com or security@simple.com.
- ohyes 15y agoThanks for responding, So when you say you aren't a bank, you really do follow many standard banking industry practices (at least in terms of security/insurance). I think it is important that you show this when advertising a service like this to possible customers. I appreciate the importance of keeping the pitch simple, but for me, I act a little more cautiously with my money than I would signing up for a new social network or something of that nature. I want to be able to read all of the fine print and know exactly what recourse/assurance I have, before I fill out an application. Having it spelled out somewhere is important. Perhaps I simply couldn't find that part of the site, (but even if that is the case), any security guarantees might be worth putting front and center.
- middayc 15y agolooks good, but I'm not sure if necessary very-good-modern-design == simple ? not trying to be down on you, just asking about it now because when I make stuff for others I don't have this corellation and to me the simplest thing is many times command-line.
- al3x 15y agoHi, cofounder of Simple here. This is a good point. We think there's a difference between "simple" and "stark" or "minimalist". Our goal is to create an experience that's inviting, explorable, and clear. That doesn't necessarily mean doing away with all visual ornamentation. Sure, plain text is "simple", but iconography, texture, and other design elements can contribute to that ideal as well. Thanks for your thoughts!
- pinwale 15y agoThe "atom" logo on the website and the card have a different number of loops. Have you guys standardized the number of loops or is the number of loops a clever way of denoting different products?
- middayc 15y agoYes, I agree with you. There are many types of "simple" and iconography, texture, .. can help the simplicity if used very well. I would just be really careful when doing this very rich design that the designer doesn't get carried away and forget that the design should be serving simplicity and not the other way around. Good luck with the product!
- darrenkopp 15y agoJust out of curiosity, how much did the domain name cost?
- vijayr 15y agoHow much did the "simple.com" domain cost you? :)
- Aloisius 15y agoMan, whoever their PR person is, they're sure good at getting to be #1 on HN. It seems like every month there is a new BankSimple story and every month the same comments pop up asking who they are and how they work. I do think maybe they should pick a better username though.
- klbarry 15y agoWill Simple ever integrate with, say, kingstrade or another investment program? That [!] would make things amazingly simple. I suppose that would take away their own income, though :)
- al3x 15y agoWe've considered it. Not something we're likely to do in the next year, but it's on our radar.
- xradionut 15y agoUnfortunately they need to make their web site cross-browser functional. Doesn't function well in IE8. I still have no idea why I would need their service. My current financial institutions provide awesome service without cryptic bs. Consumer banking and small business banking is simple to the moderately educated.
- al3x 15y agoIf you're happy with your current bank, you're probably not our target customer. I think we're doing some stuff that's pretty different in terms of making your financial data easy to explore and helping you meet savings goals and automatically earn more interest. Those things might not be compelling to everyone, but a lot of people seem interested.
- ganeumann 15y agoI think, when you say that banking is simple to the moderately educated, you're objectively wrong. Banking regularly comes out as one of the bottom few industries in reputation and one of the top few industries in customer complaints. A huge number of people in the US really, really dislike their banks. There are some people who do some work to make sure they choose a bank that will not treat them poorly and then continue to do the work to make sure that they don't incur surprise fees or other pitfalls. Those people think their banks are just fine. But, really, why is all that work necessary? The idea behind Simple is to have a company that treats you well by default.
- xradionut 15y ago"I think, when you say that banking is simple to the moderately educated, you're objectively wrong." Moderately educated means that a person as spent a few days in their lifetime informing themselves how simple accounting and consumer/small business banking works. It's not rocket science. If you can't read a simple financial or income statement, you can't make an informed decision about a choosing a bank or understand starting a company. Most people do cargo-cult personal finance. Why should people pay a middle man for good treatment when they can shop around and find a credit union that will do so, sans the vig?
- antoncohen 15y agoWhat if I need to bank in-person? I know it seems odd these days, one example is if you need a lot of cash. I hit my maximum daily ATM withdrawal limit last week, it was extremely annoying. I happen to have accounts at two banks, so I used my other account to get around it. I used to exclusively use online banking (E*TRADE Bank). Not being able to go to a bank in-person, for things like cash or money orders, become a real problem. I switched to normal retail banking. How would I handle these issues with Simple?
- al3x 15y agoDaily ATM withdrawal limits are something we have some freedom to adjust, but ATM owners get to set their own limits as well. We're generally trying to make it easy to make substantial withdrawals purchases and such while still keeping a lookout for fraudulent activity. We're issuing checks, so you can always make a check out to "cash" and take that into any physical bank if need be. Over time, though, I expect products like Square to make it possible to transact with your Simple debit card in places that might have previously required cash or a check.
- antoncohen 15y agoThanks for responding. I like the idea, and Square-like services will make card transactions easier in the future. But I really think you need to focus on this cash/large transaction problem. I've never thought about taking a check for "cash" to a bank, but I highly doubt it will work for a large sum of money, especially if it isn't your bank. My experience with cashing check at banks other than my own is they either refuse, or if the check is drawn on their bank they will do it for a fee. Here is a list of reasons I have needed large amounts of cash: * Last week a friend needed cash right away, I loaned it to them. That friend actually had the money in the bank, except that there are no local branches for my friend's bank. After this experience I think my friend will be getting a bank with nation-wide branches. * I've never taken out a car loan, I've always paid with cash or a bank secured check (money order). Try buying a car with a personal check or debit card. * Buying a MacBook on craigslist. Random people don't use Square. * I use to modify/build cars. Buying used engines and parts costs a lot, cash or money order required. * Neiman Marcus only takes AMAX. Visa debit cards are useless there. There isn't much you can buy at Neiman Marcus that is less than an ATM max.
- inmygarage 15y agoI wish Simple would consider supporting all ATMs, not just in-network ones. And by supporting, I mean reimbursing all ATM-related fees. Ally does this. Although Ally is a bank rather than a front-end-for-a-bank, this feature has become increasingly important to me as I find myself increasingly patronizing cash-only establishments.
- al3x 15y agoWe've explained in our FAQ why we don't do this currently: https://www.simple.com/faq/ https://www.simple.com/faq/ Basically, reimbursing ATM fees is an illusion. They charge you over here and reimburse you over there. No net win for most consumers, unfortunately.
- plusbryan 15y agoI'm curious about this - it's one of the reasons I love banking with Schwab. No fees for ATM use, even internationally. I rarely need cash, but when I do, it's really convenient that I can use any stinky old corner ATM. I ask honestly: what illusion am I missing?
- parrispreston 15y agoYeah, ditto to this. I have Schwab and I can go to any ATM and they reimburse me at the end of the month. No yearly, monthly, overdraft fees. nothing.
- andrethegiant 15y agoCan the user choose for their money to deposited in a credit union rather than a bank?
- cloudhead 15y agoSo I'm guessing this is US-only?
- kjell 15y agoI signed up for the waiting list 04/2010. Anyone here that's already in? When was your sign up?
- netmau5 15y agoI really like what you guys are trying to do here, but you still haven't made it more appealing than getting frequent flyer miles on my credit card. I know you want to use the normal card fees to make some cash, but why do you need those + deposit interest? My brick & mortar bank provides me with a free-to-use checking account w/debit card in exchange for the interest made off my deposits. My credit card, paid in full each month, provides the same free service with flyer miles. The value proposition of making my data easier to search and filter from the information already given to me at my current bank/CC websites doesn't do it for me. Love what I've seen, but I hope you guys find a better value/price point.
- al3x 15y agoThere's a couple of outcomes I can see: 1. We just aren't the right banking service for you. 2. We find out that a lot of people are interested in rewards programs, and we come up with a really compelling one. We've addressed that briefly in our FAQ, FWIW. Either way, thanks for your feedback.
- maxklein 15y agoSo the "change banking startup" has morphed into a credit card reseller?
- al3x 15y agoNo, nothing has changed about our mission but our name. Like basically every US bank, we issue a debit card. That card needs to be on one of the card networks. We chose Visa for our cards. What we're issuing is a debit card, not a credit card. It's standard practice for banks.
- moizsyed 15y ago"Drop the 'bank.' Just 'Simple'. It's cleaner."
- ben1040 15y agoI already use a small local bank. They have only a handful of branches and it's pretty easy to get stuff done with them. I don't want to change that relationship because I am happy with it, and I certainly don't want to abstract the whole thing through a middleman. It doesn't look like Simple is really right for me anyway as I have several joint checking accounts and a business account as well. But, I really wish my bank had some of the really slick online banking/mobile deposit capture features that Simple is promising. I hope that if Simple gains some traction, they can offer white label online banking services to banks or brand it as "LocalBankCo online banking, powered by Simple."
- al3x 15y agoWe're not going to aggregate your existing accounts, so no, we may not be right for you. We're also not super interested in getting into white labeling, but it's something we've thought about.
- paulocal 15y agoLove the new name and domain. Love the design of the card! Two questions though: 1) Are actual branches in the roadmap at all? Digital banking is great but has its limitations. 2) How about deposits? Can we take pictures of a check? Or make deposites at an ATM?
- tucaz 15y agoI don't live in the US but I do some business there sometimes. It would be really nice if foreigners could open an account, but I think that because the lack of a Social Security Number this is not possible, right? Actually, I have a bank account (and debit card) in a small bank in Iowa so maybe this is not an issue at all. Now I'm confused. Can someone who knows or lives in the US clarify this one?
- jackgavigan 15y agoSo the main thing I take away from this thread is this: Simple isn't.
- alwillis 15y agoI signed up for Simple née BankSimple nearly a year ago—I have an email dated November 30, 2010 that says I'm in their queue. I literally can't wait to open my Simple account, especially as 2011 is winding down. Being an early adopter and someone who became disillusioned with our financial institutions, especially the banks, signing up for Simple was a no-brainer for me. I cringe every time I have to deal with old-school, traditional banks; every month I hope it'll be the last one I have to deal with these archaic and broken institutions. As far as I'm concerned, I can't open my Simple account soon enough. I don't have any connection to the company or any of its employees. However, I do recognize when there's a better solution to an existing pain-point. I know I'm not alone in experiencing how broken banking has become—I have a $35 overdraft because I bought a $1.99 app that overdrew my account. Yeah, I'm looking at you Bank of America. I have my fingers crossed that I'll be in the first big wave of customers as Simple continues expanding its customer base since I signed up long before the Johnny-come-lately's showed up.
- cmelbye 15y agoWow, amazing to hear that it's finally here. I have an email from June 22, 2010 confirming my invitation request, hopefully I'll see something soon.
- NanoWar 15y agoOn HN, branding and naming discussions prevail :( .
- deleted 15y ago[deleted]
- drivingmenuts 15y agoWho are the partner banks? Who is actually going to be holding onto the money?