BankSimple May be First Invite-Only Retail Bank Launch

by Mercator Advisory Group 0

In early September BankSimple closed its deal for $3 million in VC funding, representing the capital it needs to get through its launch period.

The launch timing remains uncertain, since cards will be a key part of each account relationship, and BankSimple says that neither Visa nor MasterCard will open new accounts in the November/December pre-holiday busy season.

So, the beta testing with the first real customers may begin in October if the IT integrations with partner banks can be integrated that quickly, or may have to wait til next year.

Jim Bruene writes in Netbanker, “The startup has a 20,000-person wait list for an account. Think about that, a waiting list…to join a bank. I never thought I’d write that sentence. If 75% convert to actual customers, BankSimple will have already hit its first-year goal.”

So far, that wait list is a sign of how many individuals are unsatisfied with their present banking relationship, rather than an indicator of BankSimple’s long term success.

Read full article:

http://www.netbanker.com/2010/09/banksimple_may_be_first_invite-only_retail_bank.html