November 9, 2011

Simple Service, a Front-End For Your Bank Account

Simple service, a front-end for your bank account.

Simple, formerly known as BankSimple, is a personal finance application.

Using Simple, you can make purchases with a Simple Visa® card, pay bills, earn interest, set up and track savings goals, and much more. Simple replaces your bank, but we are not a bank. You use our mobile and web apps and speak with our customer relations team when you have questions. We partner with chartered banks that hold your deposits in FDIC-insured products. They take care of money, we take care of customers, and together we’re delivering a new type of financial experience that’s easier, faster, and friendlier.
Simple Finance acts as a front-end for your bank account. It tracks your spending, displays your account-status on your phone and provides electronic bill-pay.

How will Simple make money? 

Simple’s business model seems to be a Visa card provider, making a percentage on your transactions. And, if it can sign up enough users, it may try to monetize their transactions in other ways.

Is Simple useful? 

Simple is not a bank, so you still need to bank with your bank. And your bank already provides online access to your account, electronic bill pay services, downloadable transactions, statements etc – all features that Simple would now like to provide you.

If you use a finance service like Quicken and are diligent about using it, you can track all your finances to the greatest detail and plan accordingly.

So you can already do all of what Simple wants to provide. And, Simple does not seem to have any compelling feature to make you change. Do you need yet another service in between you and your bank?