Re:The Story of BankSimple
by noodle on Sunday January 16, 2011 @12:28AM
(#2108771)
iirc, this is how it works:
banksimple negotiated high rates in exchange for banksimple doing all of the overhead/grunt work. the partner bank ensures the money and will lend it out, just like a normal bank. banksimple is basically building a slick customer service and user interface business on top of an existing bank, not building a new bank.
they make money on the difference in what they're paying in interest and what they're getting, and kickback on the card usage.
banksimple negotiated high rates in exchange for banksimple doing all of the overhead/grunt work. the partner bank ensures the money and will lend it out, just like a normal bank. banksimple is basically building a slick customer service and user interface business on top of an existing bank, not building a new bank.
they make money on the difference in what they're paying in interest and what they're getting, and kickback on the card usage.