Simple (bank)
{{Short description|American neobank based in Portland, Oregon}}
{{Use mdy dates|date=November 2017}}
{{Infobox company
| name = Simple Finance Technology Corp.
| former_name = BankSimple
| logo = Simple (bank) - Logo (2016 - ).svg
| logo_size = 200px
| foundation = {{start date |2009}} in Brooklyn, New York
| defunct = {{end date|2021|05|08}}
| founders = Shamir Karkal
Alex Payne
Joshua Reich
| parent = Banco Bilbao Vizcaya Argentaria
| location_city = Portland, Oregon
| area_served = United States
| key_people = {{Unbulleted list|David Hijirida (CEO)|Susan Ehrlich (CFO)}}
| industry = Financial services
| num_employees = Over 300 (Nov 2015)
| homepage = {{URL|https://simple.com/}}
}}
Simple (formerly BankSimple) was an American neobank based in Portland, Oregon. It was recognized as the first neobank and operated between 2009 and 2021.{{cite web|title = Matt Harris of Bain Capital Ventures on New York's Fintech Evolution, Friendliness to Vendors, and Failures in Regulation|date=June 1, 2021|publisher= NYC Founder Guide |url=https://www.nycfounderguide.com/insight/matt-harris-bain-capital-ventures-new-yorks-fintech-evolution-friendliness-vendors-regulation}}
The company provided FDIC-insured checking accounts to U.S. citizens, but not to permanent residents, through a partnership with U.S. Bancorp before transitioning over to BBVA USA.{{cite web|title=Simple: FAQ|url=https://simple.com/faq|url-status=live|publisher=Simple|archive-url=https://web.archive.org/web/20210129064838/https://simple.com/faq|archive-date=January 29, 2021}} It was part of the Allpoint network for surcharge-free access to ATMs.
In 2014, Simple became part of Spanish bank Banco Bilbao Vizcaya Argentaria, one of the largest banks in Europe.{{cite web|title=The Next Chapter|author=Joshua Reich|date=February 20, 2014|publisher=Simple|url=https://www.simple.com/blog/the-next-chapter|access-date=February 20, 2014|archive-date=December 8, 2015|archive-url=https://web.archive.org/web/20151208054822/https://www.simple.com/blog/the-next-chapter|url-status=dead}}{{cite web|title=BBVA acquires digital banking service pioneer Simple|url=http://newsroom.bbvacompass.com/BBVA-acquires-digital-banking-service-pioneer-Simple|publisher=BBVA Compass|format=press release|accessdate=February 20, 2014|archive-date=February 23, 2014|archive-url=https://web.archive.org/web/20140223114531/http://newsroom.bbvacompass.com/BBVA-acquires-digital-banking-service-pioneer-Simple|url-status=dead}} On May 8, 2021, Simple was closed, and remaining accounts began to be transitioned to BBVA checking and savings accounts.
History
File:Simple (bank) Logo, 2011-2016.png
The company was originally founded as BankSimple in 2009 in Brooklyn, New York, by CEO Joshua Reich and CFO Shamir Karkal.{{cite web|title = The Beginning |publisher=Simple |url= https://simple.com/blog/Simple/the-beginning/ |date=July 25, 2012 |accessdate= August 7, 2013|first=Joshua|last=Reich}} The initial seed capital was provided by Jerry Neumann. In August 2011, the company raised $10 million from investors led by IA Ventures, Shasta Ventures and Dave McClure's fund 500 Startups. Later that month, the company moved its headquarters to Portland, Oregon, where five of the company's 17 employees already resided.
The company launched in 2012 as a limited beta.{{cite news |url= https://techcrunch.com/2011/11/08/banksimple-is-now-just-simple-and-its-accepting-its-first-users/|title=BankSimple is Now Just 'Simple' |publisher=TechCrunch |date=November 11, 2011 |accessdate=February 12, 2013 |first=Jason|last=Kincaid}}
By January 2013, the company had 20,000 customers and had processed more than $200 million in transactions.{{cite news | title = A Financial Service for People Fed Up With Banks | work = The New York Times | date = January 9, 2013 | url = https://www.nytimes.com/2013/01/09/technology/a-financial-service-for-people-fed-up-with-banks.html?ref=business| last1 = Wortham | first1 = Jenna }} By July 2013, its customers had increased to 40,000 and total transaction values increased to greater than $1 billion.{{cite web|title = One Year with Our Customers|publisher=Simple|url=https://simple.com/blog/Simple/one-year-with-simple|date=July 15, 2013|accessdate=August 7, 2013|first=Joshua|last=Reich}} At the end of 2013, Simple reported processing on average around 13 debit transactions per minute with an overall customer balance of $64 million.{{cite web|title=Simple / 2013|publisher=Simple|url=https://www.simple.com/2013|access-date=December 30, 2013|url-status=dead|archive-url=https://web.archive.org/web/20131230231750/https://www.simple.com/2013/|archive-date=December 30, 2013|df=mdy-all}}
On February 20, 2014, Simple announced it had been acquired by Banco Bilbao Vizcaya Argentaria (BBVA). Paying through its subsidiary BBVA Compass, BBVA acquired Simple for $117 million.{{cite magazine|author1=David Wolman|title=The Bank and the Anti-Bank|url=http://www.newyorker.com/currency-tag/the-bank-and-the-anti-bank|accessdate=January 26, 2015|magazine=The New Yorker|date=February 26, 2014}} BBVA was also part of the initial venture funding.{{cite news|author1=William Alden|title=BBVA Buys Banking Start-Up Simple for $117 Million|url=https://dealbook.nytimes.com/2014/02/20/bbva-buys-banking-start-up-simple-for-117-million/?_php=true&_type=blogs&_r=1|accessdate=January 26, 2015|work=NY Times|date=February 20, 2014}} Simple later transitioned over to BBVA USA in 2016.
On May 14, 2018, co-founder Reich announced his plans to step down as the company's CEO.{{cite web|last1=Rogoway|first1=Mike|title=Simple's founding CEO leaving Portland online banker after nearly a decade|url=http://www.oregonlive.com/silicon-forest/index.ssf/2018/05/simples_founder_ceo_leaving_po.html|website=OregonLive.com|publisher=The Oregonian|accessdate=14 May 2018}}{{cite web|last1=Spencer|first1=Malia|title=Simple co-founder and CEO stepping down|url=https://www.bizjournals.com/portland/news/2018/05/14/simple-co-founder-and-ceo-stepping-down.html|website=BizJournals.com|publisher=Portland Business Journal|accessdate=14 May 2018}}
In February 2020, Simple announced that its automated, round up savings feature had saved customers 1.2 million dollars in less than 4 months since the feature was introduced.{{Cite web|url=https://www.businessinsider.com/simple-surpasses-12-million-in-automated-savings-2020-2|title=BBVA USA's digital offshoot Simple surpassed $1.2 million in auto savings|last=Green|first=Rachel|website=Business Insider|access-date=2020-02-11}}
On May 8, 2021, Simple was formally closed, and remaining accounts began to be transitioned to BBVA checking and savings accounts.{{cite news |url=https://www.theverge.com/2021/5/9/22427811/simple-bbva-transition-errors-bank-shutdown |title=Simple bank shutdown goes awry leaving customers without account access |first=Jacob |last=Kastrenakes |publisher=The Verge |date=May 9, 2021}}
Business model
In contrast with traditional consumer banks, Simple had no physical branches.{{cite web | title = Can BankSimple Live Up To Its Name? | date= February 11, 2011 | publisher= GigaOm | url = http://gigaom.com/2011/02/11/can-banksimple-live-up-to-its-name/| archive-url = https://archive.today/20130208073735/http://gigaom.com/2011/02/11/can-banksimple-live-up-to-its-name/| url-status = dead| archive-date = February 8, 2013}} Instead, account-holders were issued Visa debit cards and had access to an online banking system accessible through Simple.com or mobile apps for Android or iOS. Simple earned revenue by collecting interest on customer deposits and through the collection of interchange fees.
Features
- Simple mobile apps became available for iOS and Android in May 2011 and January 2013, respectively.{{cite news|url=https://www.theverge.com/2012/5/9/3010069/simple-banking-iphone-app|title=Banking substitute Simple releases iPhone app|publisher=The Verge|date=May 9, 2012|accessdate=February 12, 2013|first=Adi|last=Robertson}}{{cite news|url=https://www.theverge.com/2013/1/15/3877066/bank-replacing-simple-android-app-launches|title=Simple's online-only banking app launches on Android|publisher=The Verge |date=January 15, 2013 |accessdate=February 12, 2013|first=Adrianne|last=Jeffries}}
- Checks up to $9,500 USD were deposited through Simple's smartphone apps, or for any amount by postal mail or express courier. This amount that a customer is eligible to deposit at one time varies based upon length of time with the account had been open and number of checks previously deposited. All deposits were subject to a hold, regardless of customer status.
- A bill pay service printed checks and mailed them to specified recipients. Previously, Simple did not provide blank checks for customers, nor did it honor checks printed by a third party. However, in February 2018, a limited beta program was rolled out to specific customers which gave customers the ability to request free books of 25 checks via mail, with no fees associated with ordering or banking (i.e. returned checks or NSF fees). This program was in beta phase and was gradually rolled out to users throughout the first half of 2018. Simple’s “Bill Pay” service was shut down on July 9, 2019.
- Simple's online banking interface integrated hashtag searching, memos and location-based information for users' transaction history.
- Using the Goals feature, account holders were able to schedule automatic savings on a daily basis.
- Using the Expenses feature, account holders were able to schedule automatic goal allocations for the purposes of paying bills.
Controversy
After BBVA acquired Simple, it required non-citizens of the US to open Simple accounts at a BBVA branch rather than online. A federal lawsuit challenging this practice was filed in 2018. {{cite court
|litigants=Chattopadhyay v. BBVA Compass Bancshares, Inc.
|vol=
|reporter=
|opinion=4:19-cv-01541-JST
|pinpoint=
|court=N.D. Cal.
|date=2019
|url=https://www.courtlistener.com/recap/gov.uscourts.cand.339889/gov.uscourts.cand.339889.42.0.pdf
|access-date=
|quote=
}}
References
{{Portal|Banks}}
{{Reflist|32em|refs=
{{cite web| url= http://www.oregonlive.com/silicon-forest/index.ssf/2011/08/promising_ny_startup_banksimple_moves_hq_to_portla.html| title= Promising NYC startup BankSimple moves HQ to Portland| first= Mike |last= Rogoway | date= August 24, 2011| publisher= The Oregonian | accessdate= July 24, 2014}}
}}
{{Banco Bilbao Vizcaya Argentaria}}
{{Authority control}}
Category:500 Startups companies
Category:2014 mergers and acquisitions
Category:2009 establishments in New York City
Category:American companies disestablished in 2021
Category:American companies established in 2009
Category:Banco Bilbao Vizcaya Argentaria