| By Jim Bruene on August 2, 2010 11:05 PM | Comments (3) |
In the history of online banking, has there ever been so many words written about a company before it's even opened for business? I can't think of any.
It's a two-edged sword. Free publicity is great for building a brand. But it can also ratchet expectations up so high that delivering the goods becomes harder.
The BankSimple team is keeping things low-key on its website. You even have to search a bit to figure out how to get on its mail list (see note 1). But some of the press accounts are downright giddy over the yet-to-be-launched-nonbank bank (note 2).
Case in point: Friday's Mashable post which generated 1,000 Tweets, 365 likes, 33 comments, and eight Diggs. The author, Jennifer Van Grove gushes about BankSimple, using terms usually reserved for a new Apple i-something launch:
The Banksimple formula is one that puts customers first and focuses on automatic, "worry-free" money management with a digital twist and penchant for social integration.
...the startup's bleeding-edge approach to banking that we predict will be both controversial and groundbreaking.
And these were the subheads in the article:
- A New Way to Bank
- Predictive Money Management
- Social Media Meets Banking
- Fee-Free for Real
- The Zappos of Banks
But after all that setup, the reader comments were predominantly skeptical/negative. I think it all sounded a little too good to be true.
Relevance to Netbankers: Despite the skeptical Mashable comment thread, there is a real appetite in the country (world?) for fresh ideas in the banking sector. But there's also huge trust hurdles for financial startups. BankSimple is planning a hybrid model. A Web-based, social-media-loving startup running on the banking rails (note 3). It worked for PayPal. It will work again (note 4).
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Notes:
1. Prospective customers must first click on the Join tab on the far right of homepage. Users are asked for their email address (obviously) and something I've not seen before, their bank balance. Maybe it's just me, but that seems a little too forward for a beta invite page and may dissuade some from leaving their name. Also, it seems just a bit out of step with the bank's populist message. Not a big deal.
2. And given that this is our third post on BankSimple, I guess we are in that category as well.
3. We've written about this theme many times over the years; the last time we published a full report was almost ten years ago: Online Banking Report: Building the Amazon.com of Financial Services.
4. This is a general statement. Until I understand what it's doing, I'm not predicting anything about BankSimple, other than it will get a lot more press.
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I get frustrated by my bank account. Basically, it’s a way of storing money and being able to move money into it and out of it in a simple way, with a little money paid to you as a kind of loyalty bonus. Little more.
But I want something more.
Within an account, I’d like to be able to tag money within my balance according to what I want to do with it. And when I make a payment or a deposit, I’d like to tag it similarly, either all as one or across a number of tags.
In my business account, when an invoice gets paid I’d like a certain percentage of the amount to be tagged as tax. When my salary goes into my personal account, I’d like a certain sum to be tagged savings.
And when I log into my account online, I’d like to see my account balance broken down by the various tags. That way I can better manage my money and understand my position.
Is that too much to ask?
Jim, I agree. Banks have been doing this forever by building up hype in their advertising and underdelivering. There are some fascinating angles to the 'promise' and I hope it comes true on at least some. As you indicate there is an enormous appetite for change.
Jim, I am also always looking for fresh ideas in the consumer banking sector. I agree that the personal information requested was a bit off putting, but I am curious and therefore interested. Let's face it, banking is not the most fun activity that we do, so the idea of making it simpler is attractive to me. I guess we will all have to wait and see if they come up with something new.