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Banking is an industry that is not nearly as simple as it seems. There is a difference between "you" walking in to a bank wishing to establish an account and a
by bradleyland 15y ago
Banking is an industry that is not nearly as simple as it seems. There is a difference between "you" walking in to a bank wishing to establish an account and a "partner" like Simple seeking to move depository funds between banks.
The bank pulls a credit check on you, the individual, to mitigate risk. A company like Simple would secure a bond or insurance to mitigate this risk for the partner bank, reducing the friction for a business critical action (moving partner banks).
Pragmatically, Simple wouldn't survive very long if every customer were hit with a hard credit pull every time Simple moved their funds. I'm not even sure that would be legal.
- ironchef 15y agoSure. I would assume it would be very similar to the pre-screening credit card companies do (which does not negatively affect a person's credit); however, if you look at the common components of a person's FICO score, a number of factors _could_ be adversely affected depending on how these things are done (closing of revolving accounts, length of credit history, credit searches, etc.). People are asking questions because it's a complex subject...and while people want to believe they won't be adversely affected, that doesn't mean it won't happen. Simply due dilligence I think.