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Home / Tips and Tricks / “Simple” Online-Only Bank Shuts Down With No Equivalent Replacement in Sight – Review Geek

“Simple” Online-Only Bank Shuts Down With No Equivalent Replacement in Sight – Review Geek



A simple credit card on a vanity.
Easy

Simple started … well, simply. In the beginning, it was an invite-only, online-only bank, with integrated money management tools. Imagine your Banking app came with Mint built into the interface. That was basically simple, and it grew quickly. Was the keyword because customers are getting emails that parent bank BBVA USA Simple will shut down and transfer users to its services. And it will not be the same.

The emails now go to users and it says that BBVA chose to shut down Simple for “strategic reasons”

;. The bank bought Simple in 2014. Here is the text of the email:

We have an update for you on your banking relationship with Simple, a subsidiary of BBVA USA.

BBVA USA has made the strategic decision to close Simple. There is no immediate impact on your accounts with Simple and you don’t need to do anything at this point. Since your deposits are already placed with BBVA USA, they will remain there in FDIC insured accounts, up to the applicable limits. In the future, your Simple account will be managed exclusively by BBVA USA, but until then you can continue to access your account and keep your money through the Simple app or online at simple.com. You will receive additional information regarding the transition of your account management to BBVA USA in the near future.

We want to assure you that we are committed to making this transition as smooth as possible for you and that we will provide ongoing transparent and open communication so you know what to expect every step of the way.

Our customer service representatives are not currently able to answer questions about this announcement. We will contact you proactively when we have more details. Only contact customer support for your normal banking needs.

Thank you for being a Simple customer, it has been an honor to serve you.

But while it’s true that deposits keep FDIC-insured accounts, the switch will eventually have to be switched to the BBCA app and portals. And that’s a shame, because Simple was more than just an online bank account. It came with the ability to set goals such as saving for vacation, retirement, specific accounts and the like. If you’ve ever used the “envelope system”, think about it, but in a digital format.

Few banks have these types of tools built directly into banking apps. Instead, you usually need a second app, such as Mint or Personal Capital. According to Android Police, the decision to close is due in part to BBVA’s upcoming merger with PNC. In a statement to Android Police, BBVA explained:

BBVA USA continuously evaluates strategic priorities and resources, including existing and potential partnerships with outside organizations. We took advantage of the upcoming merger with PNC to reassess our goals for BBVA USA so that we focus on the things that make the most sense for the future of the business, both on a standalone basis and possibly combined with PNC. As a result, today we speed up some changes and stop working on others, including closing Simple. These assessments are part of our normal processes and have resulted in other companies closing in the past year based on performance and the economic environment, including Covault (2020) and Denizen (2019).

Simple customers already have a dual relationship with BBVA USA and Simple. We will migrate these customers to the award-winning BBVA USA mobile app. Those same clients will become PNC clients upon closing of the acquisition, subject to customary closing conditions. As part of BBVA USA, Simple customers will have access to a much wider range of products and services, in addition to the bank’s award-winning mobile app, including BBVA Financial Tools.

That’s because BBVA USA didn’t stop announcing Simple’s closure. Another acquired online-only bank, Azlo, is now sending a similar email to customers:

It is a pity to share this news today: our parent bank, BBVA US, has made the strategic decision to close Azlo. Transparency is incredibly important to me and the Azlo team, which is why we’re sharing the news early. There are no immediate changes to your account or to your service.

As founders and entrepreneurs, we know that unexpected bumps can arise in the entrepreneurial process. We’re sorry we won’t be standing by you – our inspiring community of entrepreneurs – as you grow and thrive.

We would like to reiterate that Azlo’s service and your account will not disappear today, and we will continue to support you during this transition period. We understand you have questions for us. Stay tuned for updates and news.

With admiration,
Cameron Peake, Founder and CEO
The Azlo team

As 2021 progresses and the effects of the global pandemic settle, it will not be surprising that more small businesses and services will be closed or taken over by larger companies. It may be something to keep in mind before purchasing a small, independent service without a clear vision of profit.




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