Re:The Story of BankSimple
by SkyMarshal on Sunday January 16, 2011 @02:30PM
(#2109975)
Pertinent section about BankSimple, after the bio writeups for the three principals:
"As the months go on, Reich and Karkal research and refine their idea. They discover that starting a bank, charter and all, is a cumbersome process that could take three to four years and would plunge them into a world of regulation and compliance. They decide that their main goal is to improve customer experience, because, as Reich says, "Banks in America fundamentally make money by keeping customers confused. ... A confused customer is a profitable customer. We've joked that one of the greatest innovations in banking is ever-decreasing font size." They realize the best way to improve customer experience is as a technology company, and it's what they both do best. They're now developing the technology Reich believes is so lacking in current U.S. banks. This technology will be transparent to the average customer but will make their banking easy, hassle-free. Even the product's name will be easy-BankSimple.
BankSimple will be exclusively online. Customers will have one easy-to-access account and one card. They'll have free ATM access to the nation's largest network and free online bill payment. They'll have no overdraft fees, in fact, no hidden fees at all. They'll be able to deposit checks in such innovative ways as using pictures taken with their smartphones. They'll have real-time, useful data and the tools to clearly and easily manage their money.
In the consumer's eyes, BankSimple will function as a bank, but in reality it's purely the front-end experience. Reich and Karkal will work behind the scenes with chartered banks that hold FDIC-insured deposits and make loans. Their company's system will move funds as needed between checking, savings, and credit accounts to make life easy yet yield the most for the customer. The company will make its profits not from myriad fees, but by sharing lending and credit card profits with their partner banks."
"As the months go on, Reich and Karkal research and refine their idea. They discover that starting a bank, charter and all, is a cumbersome process that could take three to four years and would plunge them into a world of regulation and compliance. They decide that their main goal is to improve customer experience, because, as Reich says, "Banks in America fundamentally make money by keeping customers confused. ... A confused customer is a profitable customer. We've joked that one of the greatest innovations in banking is ever-decreasing font size." They realize the best way to improve customer experience is as a technology company, and it's what they both do best. They're now developing the technology Reich believes is so lacking in current U.S. banks. This technology will be transparent to the average customer but will make their banking easy, hassle-free. Even the product's name will be easy-BankSimple.
BankSimple will be exclusively online. Customers will have one easy-to-access account and one card. They'll have free ATM access to the nation's largest network and free online bill payment. They'll have no overdraft fees, in fact, no hidden fees at all. They'll be able to deposit checks in such innovative ways as using pictures taken with their smartphones. They'll have real-time, useful data and the tools to clearly and easily manage their money.
In the consumer's eyes, BankSimple will function as a bank, but in reality it's purely the front-end experience. Reich and Karkal will work behind the scenes with chartered banks that hold FDIC-insured deposits and make loans. Their company's system will move funds as needed between checking, savings, and credit accounts to make life easy yet yield the most for the customer. The company will make its profits not from myriad fees, but by sharing lending and credit card profits with their partner banks."