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Does 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

Does 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 ago
  Doesn'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 ago
    https://www.simple.com/faq/ https://www.simple.com/faq/ > your cash is deposited with our bank partners in FDIC-insured products.
    - steve8918 15y ago
      I 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?
      - noodle 15y ago
        i don't work for them. read their FAQ and their site. if it doesn't answer their questions, ask them. if you're not convinced, don't use it. i suspect this isn't for everyone. it might not be for you. not everyone "gets" mint either.
  - shamirk 15y ago
    Guys - the FAQ https://www.simple.com/faq/has https://www.simple.com/faq/has all the answers you need. - FDIC insurance is pass through from the underlying banks. - you open your account through us, and manage it through us.
    - Game_Ender 15y ago
      From all the questions here on HN I think you need to much more explicit with people about who actually holds their money, and that they can withdraw it from that Bank directly if they desire.
    - esrauch 15y ago
      You FAQ absolutely does not answer my question. It sounds like this comment answers the question, but it still isn't explicit enough. If I trust Joe Schmo with my money, he can put that money in a FDIC insured bank. In a way, you could say that I am protected by the FDIC insurance because if there is a run against the bank or something, my money would still be safe. However, the mere fact that Joe is storing my money in an FDIC insured location doesn't mean that I get the same legal protections. What if Simple goes out of business? If it goes bankrupt? I infer from this comment that my money would go nowhere if Simple went out of business, that I actually have a relationship with some bank that I could access and completely bypass Simple if I so chose, and that would continue to exist even if Simple went out of business. I would absolutely not trust you without this explicitly stated in the FAQ though.
wwdevries 15y ago
Coincidentally I noticed that both Simple and Square do not mention anything (anymore) about who they are. No about page, no team page, no nothing. Especially with companies that are all about your money, I'd at least like to know who's running the shop. Since it's pretty much the standard for startups to tell about themselves on their web site, this must have been a deliberate choice. What advantage does it have – especially in the case of Square and Simple – not to show who you are?
- k-mcgrady 15y ago
  It's probably to do with image, particularly how that looks to ordinary consumers. If consumers look at a bank/payments company and see it is run by a small team of 20/30 something geeks, rather than wall street types they might be anxious about letting them take care of their money.
- al3x 15y ago
  Hi, cofounder of Simple here. We had a "team" page on our previous site (under the BankSimple name). We plan on revising and reviving that page, it just didn't make the cut for our updated site for the Simple rebranding. I like knowing who's behind the products and services I use too.
- niketdesai 15y ago
  I noticed this as well, but I was able to see the team over on their Jobs page (and get a little bit of information about them too). I don't mean for this to be a solution to what you have brought up, but if you want to see something about them now it's a start.
deleted 15y ago
[deleted]
al3x 15y ago
Hi, cofounder of Simple here. From a regulatory perspective, we're a lot like a prepaid card. It's a well-known model that banking authorities, legal experts, and the government is comfortable with. You probably already use financial products that work similarly to the way we do. That said, we hold ourselves to the same security standards that "real" banks do. I'd like to think we're going above and beyond when it comes to security.
- maaku 15y ago
  "a lot like a prepaid card" doesn't answer the question. In what ways is it like a prepaid card? In what ways is it not? As the OP asked, where does the money actually go? It's a concern that you couldn't really answer the question.
  - ynniv 15y ago
    I think that you are wrong that this is a concern. HN is not a financial forum, and you are asking for technical details that are irrelevant to the discussion. Simple's statement is that your money is in a third party bank, and Simple promises to be a prudent intermediary.
    - AznHisoka 15y ago
      To defend the parent, I'm also concerned :)
      - ynniv 15y ago
        Maybe you could provide more detail? Simple appears to be very transparent in what service they provide and where they make their money. I said that HN is not a financial forum not because we aren't curious, but because we aren't informed. It's rather like customers fervently demanding to know which web framework you built your photo sharing website on, because "there was that thing that went bad that time before and like lots of people lost some data". Would it comfort this customer to know that you are using django? Or rails? It's foolish to provide any answer, because at such a high level there are no wrong answers. It's important to be concerned about your money, but let's be reasonable in the technical questions that we demand answers to. As Simple handles money, they are already heavily regulated and bonded, and if anyone doesn't get their money back, it won't be depositors.

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 ago
Doesn'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 ago
  https://www.simple.com/faq/ https://www.simple.com/faq/ > your cash is deposited with our bank partners in FDIC-insured products.
  - steve8918 15y ago
    I 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?
    - noodle 15y ago
      i don't work for them. read their FAQ and their site. if it doesn't answer their questions, ask them. if you're not convinced, don't use it. i suspect this isn't for everyone. it might not be for you. not everyone "gets" mint either.
- shamirk 15y ago
  Guys - the FAQ https://www.simple.com/faq/has https://www.simple.com/faq/has all the answers you need. - FDIC insurance is pass through from the underlying banks. - you open your account through us, and manage it through us.
  - Game_Ender 15y ago
    From all the questions here on HN I think you need to much more explicit with people about who actually holds their money, and that they can withdraw it from that Bank directly if they desire.
  - esrauch 15y ago
    You FAQ absolutely does not answer my question. It sounds like this comment answers the question, but it still isn't explicit enough. If I trust Joe Schmo with my money, he can put that money in a FDIC insured bank. In a way, you could say that I am protected by the FDIC insurance because if there is a run against the bank or something, my money would still be safe. However, the mere fact that Joe is storing my money in an FDIC insured location doesn't mean that I get the same legal protections. What if Simple goes out of business? If it goes bankrupt? I infer from this comment that my money would go nowhere if Simple went out of business, that I actually have a relationship with some bank that I could access and completely bypass Simple if I so chose, and that would continue to exist even if Simple went out of business. I would absolutely not trust you without this explicitly stated in the FAQ though.

wwdevries 15y ago

Coincidentally I noticed that both Simple and Square do not mention anything (anymore) about who they are. No about page, no team page, no nothing. Especially with companies that are all about your money, I'd at least like to know who's running the shop. Since it's pretty much the standard for startups to tell about themselves on their web site, this must have been a deliberate choice. What advantage does it have – especially in the case of Square and Simple – not to show who you are?

k-mcgrady 15y ago
It's probably to do with image, particularly how that looks to ordinary consumers. If consumers look at a bank/payments company and see it is run by a small team of 20/30 something geeks, rather than wall street types they might be anxious about letting them take care of their money.
al3x 15y ago
Hi, cofounder of Simple here. We had a "team" page on our previous site (under the BankSimple name). We plan on revising and reviving that page, it just didn't make the cut for our updated site for the Simple rebranding. I like knowing who's behind the products and services I use too.
niketdesai 15y ago
I noticed this as well, but I was able to see the team over on their Jobs page (and get a little bit of information about them too). I don't mean for this to be a solution to what you have brought up, but if you want to see something about them now it's a start.

deleted 15y ago

[deleted]

al3x 15y ago

Hi, cofounder of Simple here. From a regulatory perspective, we're a lot like a prepaid card. It's a well-known model that banking authorities, legal experts, and the government is comfortable with. You probably already use financial products that work similarly to the way we do. That said, we hold ourselves to the same security standards that "real" banks do. I'd like to think we're going above and beyond when it comes to security.

maaku 15y ago
"a lot like a prepaid card" doesn't answer the question. In what ways is it like a prepaid card? In what ways is it not? As the OP asked, where does the money actually go? It's a concern that you couldn't really answer the question.
- ynniv 15y ago
  I think that you are wrong that this is a concern. HN is not a financial forum, and you are asking for technical details that are irrelevant to the discussion. Simple's statement is that your money is in a third party bank, and Simple promises to be a prudent intermediary.
  - AznHisoka 15y ago
    To defend the parent, I'm also concerned :)
    - ynniv 15y ago
      Maybe you could provide more detail? Simple appears to be very transparent in what service they provide and where they make their money. I said that HN is not a financial forum not because we aren't curious, but because we aren't informed. It's rather like customers fervently demanding to know which web framework you built your photo sharing website on, because "there was that thing that went bad that time before and like lots of people lost some data". Would it comfort this customer to know that you are using django? Or rails? It's foolish to provide any answer, because at such a high level there are no wrong answers. It's important to be concerned about your money, but let's be reasonable in the technical questions that we demand answers to. As Simple handles money, they are already heavily regulated and bonded, and if anyone doesn't get their money back, it won't be depositors.