Simple, the online-only banking solution, has been acquired for $117 million. The company has been taken under the wing of BBVA, a 150-year old financial institution, which is a leader in the Spanish market. BBVA is also one of the top banks in the US, and invests in Turkish and Chinese banks as well.
Simple says they will continue to operate independently, and that users will see no changes. It should be noted that Simple is not a bank, but a go-between for consumers and an FDIC insured banking institution. The goal for Simple was to provide web-based financial information for money management. though money kept with Simple was FDIC insured, they were not an official banking institution.
Bancorp, Simple’s current FDIC-insured partner, will retain all accounts until the changeover is complete. The goal for Simple is to gain control of the entire banking experience it’s customers have, which it can now do under BBVA. The new parent company gives Simple the needed backbone for creating a more well-rounded experience, and gives BBVA a user base jump of about 100,000, and $1.7 billion in transactions.
The benefits outweigh any negatives associated with tho transaction, save for one. Simple was always the “anti-bank”, but now reports to one of the largest institutions on earth. If you joined Simple in a move to resist banking institutions, this could be quite the gut-shot to your principles. Then again, Simple is still acting as the front-man for an FDIC institution, they’re just becoming more elegantly equipped to provide better services. Win-win?
Source: Venture Beat