Simple: How do you get a bank to smile? Simple...

This one looks like someone has finally convinced the banking fraternity that their best bet for future success is to completely disappear into the background and leave the sticky matter of customer service to people who actually give a damn! Let’s face it the reputations of most banks are currently shot to bits. It’s not just that they’ve made our lives a financial misery through years of imprudent lending but generally they’ve gone about it whilst being rude and unhelpful at the same time.

Simple represents quite a canny idea whereby it acts as the face of the bank whilst not actually being a bank. This in itself should not cause any risk issues as your money will always be held in FDIC-insured products with their partners who are bona fide financial institutions. Currently they use The Bancorp Bank and CBW Bank.

What you get with this one is a shift away from your current banking arrangements to a totally online arrangement with no shop front or counter whatsoever. You do however need to have a smartphone as well as a Social Security number.

The site promises to provide all of your domestic banking requirements at a cheaper price like bank transfers and use of other bank ATM’s. There is also a promise of no hidden fees and no monthly charges for things such as debit cards, low balances and overdrafts. You will however pay the going rate for any international transfers you might need to make.

The concept is interesting in that it appears that a bunch of people have hit on the fact that banks just don’t do customer service. Furthermore they have picked on a couple of partners who probably don’t have a high profile and no real online banking product. The arrangement clearly suits both parties who then split the difference in terms of the interest margin earned. It is worth bearing in mind though that your relationship is with Simple and not the bank.

Conclusion

If you can get your head round the concept of banks basically outsourcing their customer service function to people who promise a first class and cost saving product then this one might be worth a punt. Some existing customer testimonials might however be a prudent first step.