BankSimple offers an alternative banking experience focused on simplifying how users save money and make and track purchases in real time via a minimal web interface. Its product includes white credit cards that are about to enter a "Friends and Family" test mode. The company has formed partnerships with banking and payments providers including Visa, CBW Bank, The Bancorp Bank, Allpoint, Andera and TxVia to enable deposit holding, card acceptance, ATM access, account management and payment processing. BankSimple is still operating in stealth but plans to open to customers by the end of the year. Financially, the startup has raised a Series B and earlier seed/Series A financing rounds reported in the press. Founders are CEO Joshua Reich, CFO Shamir Karkal and CTO Alex Payne (a former Twitter engineer). BankSimple is developing a modern web and mobile front end that aggregates customers' accounts into a single account and dashboard, showing savings, spendable balances, and progress toward financial goals. The company plans iPhone and Android mobile apps, requires early customers to own a smartphone, and will support mobile check deposit via photos and a linked bank card. BankSimple does not hold deposits itself; it works with partner wholesale banks to hold funds and handle the back end. Its revenue model is to split the net interest margin with partner banks rather than charging fees. The startup has not yet launched; Joshua Reich is CEO and focuses the company on user experience rather than banking operations and regulatory compliance. The company contrasted its approach with firms that hold deposits, saying it prefers to partner with banks and concentrate on building the technology and experience.

Total raised

$13M

Funding rounds

2

Latest round

Series B

Latest activity

Aug 2011