Simple (bank)

Simple

Company type	Subsidiary
Industry	Banking, Financial services
Founded	2009 (2009)
Founder	Shamir Karkal, Alex Payne, Joshua Reich
Defunct	May 8, 2021 (2021-05-08)
Fate	Acquired by Banco Bilbao Vizcaya Argentaria (BBVA) and later shut down
Headquarters	Portland, Oregon , United States
Area served	United States
Key people	David Hijirida (CEO), Susan Ehrlich (CFO)
Products	FDIC-insured checking accounts, online banking services, mobile banking apps
Number of employees	300+
Parent	Banco Bilbao Vizcaya Argentaria (BBVA)

Simple (originally known as BankSimple) was a U.S.-based neobank with its headquarters in Portland, Oregon. Established in 2009 by Shamir Karkal, Alex Payne, and Joshua Reich, it is widely regarded as the pioneering neobank and remained operational until 2021.

Simple provided FDIC-insured checking accounts to American customers through partnerships initially with U.S. Bancorp and subsequently with BBVA USA. Customers benefited from access to surcharge-free ATMs via the Allpoint network, which improved overall banking convenience.

In 2014, the Spanish banking corporation Banco Bilbao Vizcaya Argentaria acquired Simple, thereby extending BBVA’s presence in the digital banking sector. At the time of acquisition, Simple employed over 300 individuals and was managed by CEO David Hijirida alongside CFO Susan Ehrlich. This acquisition was part of BBVA’s strategic plan to enhance its digital banking offerings and expand its market share within the United States.

Simple discontinued its services on May 8, 2021, transferring all remaining clients to BBVA’s checking and savings accounts. This move marked the conclusion of Simple’s independent operations within BBVA’s global framework.

History

Founded in 2009 in Brooklyn, New York by CEO Joshua Reich and CFO Shamir Karkal, BankSimple initially secured seed funding from investor Jerry Neumann. In August 2011, it raised $10 million in a funding round led by IA Ventures, Shasta Ventures, and 500 Startups, coinciding with the relocation of its headquarters to Portland, Oregon. The company introduced a limited beta version in 2012.

By January 2013, Simple had amassed 20,000 customers and facilitated transactions exceeding $200 million. Midway through 2013, the user base doubled to 40,000 with transaction volumes surpassing $1 billion. By year-end 2013, Simple averaged approximately 13 debit card transactions per minute and maintained $64 million in customer deposits.

On February 20, 2014, Banco Bilbao Vizcaya Argentaria (BBVA), an early investor in Simple, acquired the company for $117 million through its subsidiary BBVA Compass. Simple officially integrated into BBVA USA by 2016.

Co-founder Joshua Reich resigned as CEO in May 2018. In February 2020, Simple revealed that its automated round-up savings feature had helped customers accumulate $1.2 million in savings within just four months.

Simple ceased operations on May 8, 2021; remaining accounts were migrated to BBVA’s checking and savings products.

Business model

Distinct from conventional retail banks, Simple functioned entirely without physical branch locations. Account holders accessed their funds using Visa debit cards alongside online banking services available via Simple.com or mobile applications for Android and iOS devices. Revenue streams included interest earned on customer deposits as well as interchange fees from card transactions.

Features

• Mobile applications were launched for iOS in May 2011 and for Android in January 2013.
• Customers could deposit checks up to $9,500 through the smartphone apps; higher amounts were accepted via mail deposits but subjected to holding periods.
• The bill payment system involved printing and mailing checks to payees. Initially, Simple did not provide blank checkbooks or accept third-party checks; however, in February 2018 it introduced a limited beta allowing customers to request free checkbooks. This feature was discontinued on July 9, 2019.
• The online platform included functionalities such as hashtag-based searching, memos attached to transactions, and location tagging.
• The Goals feature automated daily savings contributions.
• The Expenses tool enabled users to allocate funds automatically toward scheduled bill payments.

Controversy

After BBVA took over Simple, individuals who were not U.S. citizens had to visit BBVA branches in person to open accounts, as online account creation was no longer available to them. This requirement prompted a federal lawsuit in 2018 that contested the policy.