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Simple<\/a>, the online banking service that promised to be a better alternative to big banks like Chase or Citibank, is falling short of some users\u2019 expectations. This time, it comes as a result of the sudden and surprising notice customers received alerting them that their accounts would be closed next month.<\/p>\n On Thursday, Simple sent notice to a small number of customers with the subject line \u201cWe have to close your account on May 13.\u201d The notice went on to explain that the closures were the\u00a0result of a massive account migration the company has been working on for the last several\u00a0months. Those users\u00a0wouldn\u2019t make the cut before Simple\u2019s contract with its former partner bank ended, leaving them out in the cold.<\/p>\n Simple launched\u00a0its banking service in 2012<\/a>, offering a forward-thinking and tech-enabled alternative to traditional brick-and-mortar banking options. With a slick web UI and mobile apps for managing customers\u2019\u00a0money, Simple set itself apart from the monolithic banking products of the day.<\/p>\n In reality, the service sometimes fell short of some users\u2019 expectations, due to occasional outages<\/a>\u00a0and glitches that plagued users<\/a>\u00a0even after it was acquired\u00a0by BBVA<\/a> for $117 million three years ago.<\/p>\n Simple\u2019s\u00a0acquisition by BBVA and its migration\u00a0to the Spanish banking group\u2019s infrastructure is the main reason behind the account closure notices issued yesterday. Until recently, Simple relied on The Bancorp Bank as its\u00a0underlying partner bank where accounts were held.<\/p>\n Internally, the plan was always to move accounts over to BBVA Compass, and Simple announced the transition<\/a> about a year ago. Last\u00a0September, Simple began sending the first of its transition letters to customers, and has been migrating accounts\u00a0from The Bancorp to BBVA Compass ever since. Rather than try to move everyone all at once, it did so in waves so that it could handle customer service requests as they came up.<\/p>\n According to a Simple representative, the company\u00a0sorted customers\u00a0by account activity and complexity to\u00a0ensure the migration flow worked through a wide range of scenarios. Simple\u00a0also says it invited customers with the most complex accounts to move earlier so that it\u00a0could work through any issues that surfaced.<\/p>\n Unfortunately the company wasn\u2019t able to get to everyone before its deal with The Bancorp ended and it would be forced to close the remaining accounts.<\/p>\n We\u00a0first became aware of the issue\u00a0after Aaron Frank, a Simple customer and founder of YC-backed credit card startup Final, posted his notice<\/a>\u00a0to Twitter yesterday. But he\u2019s not alone: Other Simple users<\/a> have taken to Twitter to complain about the way the company\u00a0is handling account closures.<\/p>\n Frank told me that he was aware of Simple\u2019s account migration to BBVA\u00a0long before hearing from the company yesterday, and even requested back in January an update on when\u00a0he would be invited to migrate his account. In an emailed response from the company, he received the following note:<\/p>\n Hey Aaron,<\/p>\n We are sending customers emails about moving there [sic] account in batches, which is why you haven\u2019t received anything just yet. But not to worry, you will be getting information on how to move your account very soon!<\/p>\n Let me know if you have any other questions!<\/p>\n<\/blockquote>\n Frank has since\u00a0been contacted by Simple customer support<\/a>, but not everyone is as lucky. For its part, Simple claims that the notices were sent to less than 1 percent of its users \u2014 0.7 percent, to be exact \u2014 and the vast majority of customers were migrated to the new system with no problems.<\/p>\n Still, with something as sensitive as banking, inconveniencing\u00a0even\u00a0a small number of users\u00a0can have an outsized effect on public perception. As with other previous setbacks,\u00a0it takes a long time to build consumer\u00a0trust when it comes to dealing with someone\u2019s money \u2014 and sending someone a notice that you\u2019re closing their bank account in 30 days probably doesn\u2019t help.<\/p>\n","protected":false},"excerpt":{"rendered":"\n
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Simple, the online banking service that promised to be a better alternative to big banks like Chase or Citibank, is falling short of some users’ expectations. This time, it comes as a result of the sudden and surprising notice customers received alerting them that their accounts would be closed next month. Read More<\/a><\/p>\n\n<\/img><\/a>
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