Simple isn’t a proper bank in and of itself. Instead, it puts your money in FDIC-insured accounts maintained by Simple’s banking partners and provides you with a really well-done app for checking your balance, depositing checks, tagging and categorising your purchases, and even sending paper checks through the mail at no cost.
The company is back in the news today to announce a merger with multinational Spanish banking group BBVA, the second-largest bank in Spain. The merger values Simple at $US117 million.
The company has been growing at a healthy clip. CEO Josh Reich writes that, “Simple now serves more than 100,000 customers. In 2013, we saw 330% growth and more than $US1.7 billion in transactions. We’ve built a growing team of 92 talented folks and have helped tens of thousands achieve their financial goals.”
Reich told us over the phone that he’s excited about the merger for three main reasons. “We remain independent. Our board of directors will continue to operate with the same governance. Then they’re injecting a significant amount of cash into the business, which lets us do some really awesome things. And I’ve gotten to know the executives out of Madrid. We have similar backgrounds and outlooks on banking — a strong respect for technology and the belief that it is core to the future of banking.”
The practical impact of this merger will be felt “over the next couple months as Simple hires and takes on more customers.”