by Joshua Reich

Status Update

status-update

Starting a bank is hard

When we first started thinking about starting a bank we looked into the de novo banking process. This is the process by which new banks are formed from scratch. This is both expensive and, more importantly, it takes too long to launch. It is near impossible to innovate with an imposed three year launch delay. The best way to serve your needs is to launch quickly and to adapt our offering to meet your individual needs. Modern technology lets us do that. To achieve this we are planning to launch with a special corporate structure. We are bringing together a group of financial institutions to provide our underlying banking services. Our partner banks hold all deposits in insured accounts. By taking this structure, we get to market faster and get to benefit from some fantastic technology. While you may not have heard of our partners (which we haven’t yet announced,) they have been quietly working on ways to bring the speed of technology innovation to the staid world of banking.

Your support keeps us going

Our technology is nearly ready, our partners are lined up and we are now in the process of raising funds to get everything in place for a launch later this year. As part of the fund raising process we ran a small marketing test to validate our belief in the demand for a new type of bank. Many of you first came across banksimple via that campaign. Having partially revealed our plans during the campaign we see no need to hide what we are up to. Transparency is something the banking system could use and we’ll continue sharing more of our plans on this blog. You can following us on Twitter at @simple. We love hearing from you and we try our hardest to personally respond to all of you. If you’d like to show your support, the simplest thing you can do right now is to sign up. Pledging your support validates our business model and ensures your place to start banking with us at launch.

Disclaimer: Hey! Welcome to our disclaimer. Here’s what you need to know to safely consume this blog post: Any outbound links in this post will take you away from Simple.com, to external sites in the wilds of the internet; neither Simple or our partner bank, BBVA USA, endorse any linked-to websites; and we didn’t pay/barter with/bribe anyone to appear in this post. And as much as we wish we could control the cost of things, any prices in this article are just estimates. Actual prices are up to retailers, manufacturers, and other people who’ve been granted magical powers over digits and dollar signs.

Important! Keep your account safe from fraud

As fraud attempts are on the rise recently — especially related to unemployment funds — help us keep your account safe by following these guidelines.

Use your Simple Account only for your own personal use. Don’t share your account with others or receive funds on behalf of third parties.

Don’t share your username or password with others. Never give out your login information. Simple will never ask you to tell us your password — if any third party makes such a request, it’s an attempt at fraud.

Don’t open an account at someone else’s request. If someone else asks you to open a Simple Account — such as a real estate company, prospective employer, or someone you met online — it is likely an attempt at fraud.

Be alert for unemployment insurance fraud. You may be violating the law and the terms of your Simple Account if you receive deposits of unemployment funds on behalf of someone else. There are state and federal penalties for unemployment insurance fraud (including potential fines and incarceration). If you suspect you are a victim of unemployment fraud, contact the appropriate state fraud hotline listed here.

Don’t receive funds on behalf of a third party. Keep in mind that receiving funds on behalf of a third party violates the terms and conditions of your Simple Account; in such instances, we may restrict and/or close your account and hold the funds while we await direction from enforcement agencies.

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