Mobile

The Keys to BankSimple’s Kingdom

Co-founder Josh Reich discusses how smartphones enable both the speed and customer experience his startup will rely on

Bank Technology News | June, 2011

New Orleans-At BankSimple, smartphones will be both an enabler of a new generation of financial services and a velvet rope.

“IPhones, iPads and Android…if you don’t have one of these devices, you can’t join,” Reich told conference attendees Sunday night at the Mobile Banking and Emerging Applications Summit, stressing the importance of advanced mobile capabilities in the startup’s business model.

More than 500 mobile, technology and bank industry execs-more than twice last year’s turnout, have gathered to share details of mobile banking’s next chapter, which will include more robust banking and payment functions to go along with remote access to financial data.

Reich, whose new firm has signed up about 50,000 users so far-mostly through word of mouth and social networks-said it’s “impossible” to deliver the customer experience that BankSimple is aiming for without a solid mobile strategy that delivers personal financial management tools in addition to executing payments and other transactions in real time at the point of sale.

For example, he said the new institution’s services includes a “safe to spend” option, which will allow users to quickly measure their finances against cost, answering “can I afford it?” for users in time to make a decision on a purchase. Reich says providing this type of context for consumers is essential to properly leverage mobile to provide financial services.

BankSimple’s brand thus far has included plenty of criticism from Reich for traditional banks. Sunday night was no exception, as Reich took aim at banking mobile strategy that he feels frequently attempts to replicate web or branch experience in the mobile channel.

Sunday’s conference opening also included remarks from Jim Stapleton, chief sales officer of ISIS. Stapleton reiterated ISIS’ plan to accelerate its recruitment of a wide range of financial institutions, saying “distribution scale is key.”

He also argued in support of NFC, which is increasingly facing rival tech models, as a mobile payments enabler, saying it’s been proven effective for short-range payment distances and relies on technology that’s already on many handsets.

The conference, presented by American Banker, BTN and PaymentsSource, will run though Tuesday.