BankSimple: We have cards • Hacker News Board

Re: BankSimple: We have cards

#71

Post by oof » Fri, May 20, 2011, 7:33 PM UTC

orijing wrote: post #26

As I understand it, banks make a large amount of revenues from fees and such. How will BankSimple succeed if it doesn't use that? How will overdrafts work? Will the check just not go through? I love that they are trying to revolutionize the banking industry, and I wish them well. But I'm afraid that they'll succumb to adverse selection to the greatest degree. The reality is that most of a bank's customers are not pro…

Pretty much every claim/assumption in this is wrong. Traditional banks make more money by adding fees, but they make plenty of money before fees, too. Interest and interchange revenue -- they are things.

Re: BankSimple: We have cards

#72

Post by cpeterso » Fri, May 20, 2011, 7:34 PM UTC

mixmastamyk wrote: post #50

Aloisius wrote: post #2

Can someone please tell me the benefits of BankSimple over all the other online banks or your local credit union? I'm afraid I don't get it.

Right, there are already good alternatives to consumer-hostile banks, such as the fantastic Charles Schwab. I always recommend them to people because they pay my banking fees, are insured, ethical/reputable, pioneered the discount brokerage, and have great 24/7 customer service. They've helped me out of numerous jams over the years.

> Right, there are already good alternatives to consumer-hostile banks, such as the fantastic Charles Schwab.

Do you mean Charles Schwab is the "good alternative" or the "consumer-hostile bank"?

Re: BankSimple: We have cards

#73

Post by pavel_lishin » Fri, May 20, 2011, 7:35 PM UTC

mahyarm wrote: post #49

aquark wrote: post #48

Earlier quoted context omitted.

Do debit cards typically incur the same fees as credit cards? I thought many places here (Canada) accepted debit but not credit because it was a fixed fee per transaction not a %

In the US (and the UK I believe), debit card transactions are done through mastercard/visa and can incur similar fees. You can also type your debit card number on online purchases and it will work correctly, vs. interac where that doesn't work. Interac is very nice for retailers in canada since it's just one flat .25 fee for any transaction, just limited by your daily card limit.

I thought that fees and such were only incurred when you ran your debit card as a credit card transaction, with signing your name and such - I was under the impression that using your PIN number and using it as debit didn't incur those costs.

Re: BankSimple: We have cards

#74

Post by tptacek » Fri, May 20, 2011, 7:35 PM UTC

newman314 wrote: post #55

paulitex wrote: post #35

Only 4 days after losing their Lead Engineer. http://twitter.com/#!/KirinDave/status/70217986962751488

Anyone know the reason why? I'm not asking because the popcorn factor but rather to understand if there's something fundamentally broken about the concept & company.

Uh huh. "I was thinking about changing banks, but Dave Fayram left the banking startup I was thinking of using, so I think I'll stick with Chase".

Pretty sure this is a popcorn topic and nothing more.

Re: BankSimple: We have cards

#75

Post by Goronmon » Fri, May 20, 2011, 7:39 PM UTC

mschwar99 wrote: post #44

younata wrote: post #38

Earlier quoted context omitted.

USAA is also available only to members of the military and their families (they've been getting more lax over the years, though).

That is apparently no longer the case. The only major services non-military are ineligible for are auto and property insurance. Eligibility description here: https://www.usaa.com/inet/pages/why_choose_usaa_eligibility_...

But from what I can tell, the smartphone deposit feature requires that you be eligible for the auto and property insurance.

Re: BankSimple: We have cards

#76

Post by brianpan » Fri, May 20, 2011, 7:40 PM UTC

steve_b wrote: post #9

I've always wondered why after winning something (or in this case, getting 50k sign ups), people say "I'm humbled." I think the truth would be the opposite: "Wow, looks like I'm pretty awesome after all."

Success (like getting a startup off the ground) takes a lot more than just personal skill/intelligence/hardwork- there's fortunate timing and circumstances, the hardwork and contributions of others, time and monetary investment of others, plain old chance luck. Recognizing that some part your achievements depended on others and things beyond your control both requires humility and can humble you.

That's not a bad state of mind, and it doesn't have to be just false modesty.

Re: BankSimple: We have cards

#77

Post by Goronmon » Fri, May 20, 2011, 7:41 PM UTC

tptacek wrote: post #74

newman314 wrote: post #55

Earlier quoted context omitted.

Anyone know the reason why? I'm not asking because the popcorn factor but rather to understand if there's something fundamentally broken about the concept & company.

Uh huh. "I was thinking about changing banks, but Dave Fayram left the banking startup I was thinking of using, so I think I'll stick with Chase". Pretty sure this is a popcorn topic and nothing more .

You don't think the Lead Engineer leaving a company not long before it's launch is not something to be worried about?

Re: BankSimple: We have cards

#78

Post by uniclaude » Fri, May 20, 2011, 7:44 PM UTC

This sounds great. Props to them if they can disrupt banking. The fact that they're not a real bank but some entity that works with partners to provide FDIC insured products is reassuring from a customer point of view. Not sure about how they will do their marketing though. Now, I hope that we, non-American customers, won't have to wait too long for this service.

Re: BankSimple: We have cards

#79

Post by tptacek » Fri, May 20, 2011, 7:48 PM UTC

Goronmon wrote: post #77

tptacek wrote: post #74

Earlier quoted context omitted.

Uh huh. "I was thinking about changing banks, but Dave Fayram left the banking startup I was thinking of using, so I think I'll stick with Chase". Pretty sure this is a popcorn topic and nothing more .

You don't think the Lead Engineer leaving a company not long before it's launch is not something to be worried about?

Because, no way is a message board full of geeks going to come up with a way to justify drama!

Re: BankSimple: We have cards

#80

Post by jrockway » Fri, May 20, 2011, 7:54 PM UTC

achompas wrote: post #69

jrockway wrote: post #66

Earlier quoted context omitted.

I cannot understand how they will generate revenue while staying loyal to customers By skimming off a percentage of the interest your money is earning in their institutional account.

I thought about this, but I wonder if it is legal given that they're not a financial institution. Alternatively, what kind of margin would they take off? 50 basis points? 100? Interest rates are already low, so a small cut right now looks very big to consumers. EDIT: posts above suggest BankSimple will offer better rates than industry competitors. Where are the margins, then?

Compare the margin between ING Direct savings and BofA checking. If you were to offer rates slightly above and store all your money in an ING Direct savings account, you would be able to make quite a profit.

It's conceivable that a large institutional client would get even better rates than an individual ING Direct savings account, so there is plenty of money for BankSimple to skim off the top, as long as they have enough capital.