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Changing the face of banking

December 1, 2010

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While there have been a few promising innovators in the field of financial services, like Mint and some peer to peer lenders, nothing has really shaken the industry out of its lethargy and done something to meet the real needs of consumers.

BankSimple could be about to change that. Instead of trying to work outside the system and bring something new to the table, BankSimple is using existing financial players to provide the basic banking services, but is using its skills to provide a radically new customer service experience on top.

The company clearly believes and understands that consumers are looking for something new.

“BankSimple will be a worry-free alternative to traditional personal banking. No surprise fees and the customer service you deserve. And that’s just the beginning.”

The company seems to determined to provide consumers with a simple way to manage and understand their finances- with interesting tools to help people know how much money they have to spend, set saving goals, etc.

They also intend to explore new ideas, like couples sharing accounts and friends joining together for transactions.

Hopefully, BankSimple will also be able to use its rich dataset to encourage its FDIC approved partners to provide more innovative financial services products.

If they can succeed by combining excellent customer service through the innovative application of tools and user interface with new products, the banking establishment could well have something to worry about.

The company plans to launch in 2011.
 
One group of consumers who might find BankSimple highly attractive are “the first time defaulters” that Deloitte identified in a recent study.

This group, which represents 11% of the banking population are people who’ve been hit by a negative credit situation, in the last two years, for the first time in their lives.

This group has a very bad impression of banks.

– 41% of the 5,000-odd survey respondents rated their interaction
with their lenders “poor”

– 43% doubted the banks’ “willingness to
listen to my concerns.”

– Two-thirds said they are unlikely to borrow again from the same institution in the future.

If BankSimple can find these people, it would be a nice base to build from, but it’s going to have to find not just deliver excellence through UI, but actively “listen” to these customers concerns and provide solutions.

Posted by Ed Cotton

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