BankTech

Banking Startup that was Acquired for $117 Mn Announces Radical Increase in Transfer Speeds

On 19th June 2014,  banking startup – Simple –announced an update that ensure quicker and easier money transfer for its users in the US. The company was recently acquired by BBVA, a 150-year old financial services corporation, for an amount of around $117 Mn.

“Speeding up external transfer times has been a long-standing goal of ours. When you apply for a Simple account, you’re signing up for the promise of a better banking experience. Waiting 5 - 6 days to transfer money isn’t just inconvenient, it’s disappointing,” wrote Simple, in a blog statement.

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  • Only 1 business day is required for moving money to external accounts.
  • If the user sends a transfer from Simple before 7 pm PST, his money will arrive in the receiving bank following morning. That’s 75% faster than before, says the company.
  • Several banks charge a fee for transferring your money to external accounts, and only offer accelerated transfers at a premium.
  • Currently, Wells Fargo and Bank of America, for example, charge upto $3 to move your money to another bank.
  • If you want that money to arrive the next business day, the fee shoots up to $10 per transfer.
  • Simple tells us to note that it costs banks less than a cent to send an ACH transfer.
  • The company says that it does not believe in unnecessary fees. External transfers to and from Simple will remain free for customers.

Simple Promises Easier Transfer Flow:

Their external transfer process has an improved interface which according to Simple, makes it a lot easier to see where your money is going and when it’s going to get there.

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Some key changes as listed on Simple’s blog:

  • Updated visual cues to give you a clearer sense of where you’re moving your money.
  • Improved language around transfers to make setting up account links and submitting transfers easier.
  • Listed dates for when the transfer amount will be deducted from your account and when it will arrive. Having a timeline for when you’ll be able to access your money helps you make better spending decisions.

Chiraag Patel

Chiraag Patel is a Senior Reporting Analyst and the Editor of Bitcoin and Virtual Currency channels at Lets Talk Payments. He is an engineer with deep interest in MMORPG, Virtual Banking, Game Currency and Virtual Cash. Chiraag enjoys Reading& Blogging with focus on New Innovation, Technology & Startups in the Payments Space.

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