BankSimple Lands $10 Million in Additional Capital and Announces Several Key Partnerships

BankSimple Lands $10 Million in Additional Capital and Announces Several Key Partnerships

BankSimple, a stealth banking company that plans to launch by the end of the year, just announced $10 million in new funding from several prominent investors as well as some key partnerships. The company aims to simplify the banking experience via technology.

Not all is doom and gloom in the banking world. Even as the world's stock markets melt down and U.S. debt is downgraded by the S&P, companies are still innovating and laying the ground work for the next economic boom. 

BankSimple, a stealth banking company that plans to launch by the end of the year, just announced $10 million in new funding from several prominent investors according to Techcrunch. This second funding round was led by IA Ventures and existing investors Shasta Ventures. That brings total funding to $13.1 million before the service has launched.

On its website BankSimple says it wants to reinvent personal banking by making it simple and providing a way to save and track money. It is not a bank but rather partners with charter banks and then provides the interfaces and customer experience to help consumers access their funds in these banks. Based on their website, they look like a combination of SmartyPig, Mint, and Perkstreet and I'm curious to see how they differentiate themsevles. Clearly, they aim to innovate around mobile and technology but some of the big banks are pretty good at that also - see Chase QuickDeposit. But still, any company that can raise the bar on the banking experience is a welcome addition.

In addition to their funding, they also announced partnerships with CBW Bank, the The Bancorp Bank, Visa, and Allpoint. I knew the Bancorp Bank sounded familiar because it's the same bank PerkStreet uses to hold customer funds. The Bancorp Bank's financials look pretty strong and its deposits and assets are growing quickly. I'm not sure what they'll be using CBW Bank for because it's tiny with only $7 million in assets but at least their financials also look okay.

It's nice to see that even as the traditional banks are facing stiff heawinds (mostly of their own making) innovation is still happening in the banking and financial space.

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