A Little Note From BankSimple

After hearing about the vision of BankSimple several months ago, I decided to see if the development of another new online bank would be different. To begin with, I accepted their invite to be part of their beta test once the bank officially launched some time in 2011. Yes, I accepted an opportunity to be on a waiting list to potentially open an account.

As a lifelong bank marketer, I also followed the story of the bank's founders and the development BankSimple (The Buck Stops Here). I was intrigued by the fact that BankSimple would not really be a bank at all, but instead, simply provide a better front-end experience with a myriad of banks being used behind the scenes to generate the highest returns (and lowest costs) for their customers.

According to their web site, the bank was going to require only a single account and one card, use simple language, treat customers as people and not account numbers, eliminate surprising fees and provide a heightened level of customer service. They would provide online, ATM and mobile access to their accounts and would provide financial tools to help a customer manage their money. Sounded good . . . but not much different than almost any bank promise.

Today, however, BankSimple set themselves apart from any of my current or previous banks.

They sent me a personalized, seemingly non-promotional email from a Customer Relations Representative named Rachel acknowledging my request for an invitation to try their bank and asking for my 'story'. Rachel asked for my "loves, hates, quibbles, desires, hopes and dreams" regarding my financial life. Her email used a Helvetica type and had no fancy creative elements included (just like an email from a co-worker or friend).

Doesn't sound like an email that was developed by a committee that then went through a bank's compliance and legal departments after several levels of management approval, does it? Rachel then went on to say that the bank was committed to building the best service a bank can offer and wanted to know "what's up?" (when was the last time your bank asked 'what's up'?). The email was so personal (it was titled 'A little note from BankSimple' and allowed me to respond directly to Rachel@banksimple.com) it begged for a response as to what I would love to see from my bank.

For those who are cynical by nature and don't believe there is a real Rachel, she was just hired ONE WEEK AGO by the bank as one of BankSimple's first Customer Service Representatives with an accompanying press release.

I responded to Rachel with some of my visions of a perfect bank. I also tweeted about the email from Rachel since the experience is so unusual for a bank. I don't know if the dialogue will continue via email, but I was again surprised when I got a response to my tweet about my email (in 10 minutes at 9PM et) from RACHEL!

Interestingly, even if I don't get an email response, the bank (and Rachel) have already surpassed my expectations, and there will be part of me that will feel like my response might have had an impact on the bank's development. Not a bad way to build an affinity and loyalty before the bank has even opens it's virtual doors. And when it comes to word of mouth marketing, I think they did pretty well in my case.

Finally, if you wonder if there is a demand for another online or bricks and mortar bank, simply watch the very robust discussion on Twitter around BankSimple and the desire for a traditional bank alternative. Up to now, this new financial entity has done a lot of things right. It remains to be seen if they can perform to this level once they start to handle money in addition to PR.

What is your bank doing to build trust, dialogue and word of mouth? Does your team have a Rachel?

An Open Letter to BankSimple

On January 18, you impressed me when Rachel Giuliani from BankSimple wrote an email to me unexpectedly asking me for my "loves, hates, quibbles, hopes and dreams" regarding my financial life. Her email seemed surprisingly personal coming from a bank I had signed up to be part of a beta test several months earlier. In her letter, she piqued my interest when she told me she represented a 'new' bank that was committed to building the best possible customer service without surprises.

Her timing was great since I had been a bit upset with my current bank. Not only had my bank changed their fee structure without a clear notification, but they seemed to be looking for new ways to generate fees for actions I had become accustomed to not paying for. Sure, I could avoid the fees as I had in the past by maintaining a steady balance in my account, but even that had been raised to a level that really didn't correspond to the value I felt I was receiving from the bank.

You made it so easy for me to respond to Rachel's email since she even provided her email address (rachel@banksimple.com). And, as opposed to feeling like my response would end up in some black hole of customer service or would be responded to by a person not even named Rachel, it was easy to see that my new pen pal had been hired just a week earlier as the first of two customer service representatives to provide 'brilliant customer service'.

I was definitely impressed that almost immediately after a wrote my email to Rachel late at night, she responded within 10 minutes! I was falling in love with your bank even though it hadn't opened yet. I was so impressed that I immediately tweeted about my experience, spoke about my dialogue with Rachel at conferences, and posted a blog entry about my new friend from your bank on this site (A Little Note From Bank Simple, January 18, 2011). That blog post generated by far more traffic than any post I have done before or after. Talk about word of mouth marketing (WOMM)!

As with any new relationship, there were some of my friends (Ron Shevlin) who were naysayers. They said it I was getting my hopes up that the communication between Rachel and I would continue. They said that the proof of a good relationship is in the long term communication and caring, and not just a single series of emails. They said I was getting my hopes up that I had found a new bank and that I might be setting myself up for being disappointed.

I am starting to believe they were right. Not only has Rachel seemed to move on to other friends as your team has grown, but the promises of a great, new banking experience that she spoke of remain just a promise. Maybe my optimistic personality got the best of me again. Sure, your leader Josh Reich tells me about the fact that you have received a lot of new funding and that you have found new corporate partners in Visa, some banks and even TXVia. You even got my hopes up when you hired Alex Payne from Twitter. but it has been 6 months since Rachel last wrote and the only time I hear about BankSimple now is through traditional press releases and trade publication interviews.

Much like in the movie Jerry Maguire, where Renee Zellweger says that Tom Cruise 'had her at hello', you really had me at 'simple'. But now, there are other banks that are starting to look a lot like how you once looked. You have competition in existing banks like Ally, and ING where there are no fees, easy access and even interest on my accounts. You also have a new competitor coming down the road that is compared to you every time they talk to industry insiders. Brett King's MoveNBank seems to be looking for friends also, allowing me to be part of their beta group in 2012. There are some of my friends like Jim Bruene from NetBanker who wonder if MoveNBank may even 'outsimplify BankSimple.

So when is Rachel, Josh, Alex and the rest of your team going to let me see more than promises? I know you have moved to a new headquarters, but to say I am ready is an understatement. Since January, my old bank (yes, I switched once already) has raised fees and cut back the value they provide again, with many of the other large banks following suit thanks to Durbin and other pressures.

If you are not quite ready to let me kick the tires or take your bank for a ride around the block, the least you could do is have Rachel write me again and assume me that our potential relationship is still alive. Otherwise, I will consider the great communication 6 months ago a nice experience, but also another lesson that all banks are alike when it comes to customer service and promises. They love to tease you, but when it comes to delivering on a promise, they fall short.

Please write.

If not you, maybe some of my blog followers can either assure me that I should remain patient or that I should move on.

Kaching Ushers In New Era of Mobile Banking

The Commonwealth Bank of Australia has broken new ground in the advancement of mobile payments by introducing a new iPhone application that allows users to pay friends or businesses using Near Field Communication (NFC), Facebook identification, an email address or a mobile phone number.

Kaching (pronounced like the cash register sound Ka-Ching)  will initially only be available for users of the iPhone 4 and 4S (with soon to follow Android support) using a specially designed case with built in NFC chip. With this case, the phone will allow the user to simply tap and pay at a PayPass terminal. 'This banking breakthrough marks a significant milestone in the evolution of how people pay and receive money from each other," stated Commonwealth Bank of Australia chief information officer Michael Harte.

According to a CBA spokesperson, the use of a specially designed NFC case is only an interim solution until iPhone, Android and other smartphones introduce new versions of phones with NFC integration built in. In what some believe could be the beginning of the end for plastic credit and debit cards and potentially even cash, this form of electronic payment would be conducted 24x7 in real time if both sides of the transaction are CBA customers and one to two days if the payment is made to a customer of another bank.


CBA has more than 6.2 million online banking customers and is the seventh largest bank in the world. According to the bank, more than 16 million logons from a mobile device were made in August (a 229% increase from last year) with close to 80 percent of these from an iPhone.

The integration with Facebook is a first in the payments world, but is felt to be a logical extension due to the acceptance of Facebook and the very strong smartphone usage by Facebook users. The iPhone application even integrates other iPhone features such a GPS function to find branches and ATMs.

Kaching iPhone Mobile Payments Screen

The Kaching app will include password encryption technology to ensure a lost or stolen phone would not be compromised and not banking information will be stored on the phone. Payment recipients will also be protected, with all un-retrieved funds credited back to the payer after 14 days the bank said.

While this technology or integration has yet to be introduced in the United States as a mobile banking application, it is expected that new virtual banks such as BankSimple and MovenBank will leverage this technology as part of their rollouts. According to Brett King, founder of MovenBank and author of the bestselling book Bank 2.0, the use of Facebook for payments or even to complete the new account application process is not so far fetched as security and acceptance of Facebook continues increase. In addition, King believes virtual currency like Facebook credits  may replace today's physical currency ('The Bank of Facebook: How Will Facebook Interact With the Global Economy' Fast Company Expert Blog by Brian Solis).

NFC support is increasing in the U.S. with the launch of the Google Wallet last month that allows for consumers to pay in select stores with phones running its open source platform. NFC is expected to gain much wider acceptance with the anticipated integration within the next generation of smartphones, especially the iPhone 5.

So, is this the beginning of the end for credit cards, debit cards, checks and cash? Will this introduction hasten the full scale introduction of new banks and bank platforms that leverage new technology and payment  methods? Will branches and ATMs even be needed in the future?

I would love to hear your thoughts.

The Power of a Simple Thank You

In the book, The Thank You Economy, Gary Vaynerchuk offers compelling evidence that we have entered into an entirely new business era, one in which the companies that see the biggest returns won't be the ones that can throw the most money at an advertising campaign, but will be those that can prove they care about their customers more than anyone else.

He illustrates that the businesses and brands that harness the word-of-mouth power from social media, those that can shift their culture to be more customer-aware and fan-friendly, will pull away from the pack and profit in today's markets.

To this end, I received an email letter today from one of the banks where I have an account. Seeing that I had just opened an account with Simple, I anticipated the worst. Maybe my initial deposit didn't clear. Maybe I did one of my transactions incorrectly or possibly didn't activate my debit card correctly. But the subject line for the email just had the words 'Thank You'. Upon opening the email (personalized with the name I told Simple I preferred using as opposed to my 'legal' name on the account), I must admit I was surprised to see that the email included nothing more than a 'thank you'. That's right, a simple appreciation letter from Josh Reich, the CEO of Simple.

The email letter did a great job of integrating the positioning of their brand while thanking me for being a part of their growth. The email thanked those who continue to interact with the bank (most banks seem to be fearful of interaction), and even included links to several of their new innovations in a way that did not seem as self serving as it could have been. In short, it was a nice message that reinforced the reasons why I wanted to try Simple.

Simple didn't need to send the email above. I would have happily continued to use the bank as I learn more about how they can make banking easier. The revenue from my relationship with the bank, at least now, is also relatively minor since I just opened the account and my balances are low (signaling that they didn't send this to just their best customers). And, I realize that this was an email that was probably sent to all of their customers as opposed to a hand written note, but it still got my attention. It got my attention because I don't remember a time when any of the other banks I do business with ever sent me a thank you.

The email served to humanize the team at Simple for me - especially since they included many of the real names on the Simple team at the bottom of the letter - and helped me understand that they will continue to do business differently than the banks I have had much more significant accounts with for decades.

It may sound a bit silly, but making a customer feel appreciated, even by email, can go a long way. Especially, when this small effort is not commonplace. As a result of this simple message (pun intended), I am more likely to expand my relationship and tell others about my experience. And it appears I am not alone.

In a quick review of tweets referencing the Simple 'thank you' email, I came across the following tweets, illustrating the power of social media and word of mouth when something good occurs.

Got an email from @simplify w/ subject "Thank you." Scrolled to find the bad news. Turns out it's really just a nice thank you note. :)
— Sarah Hatter (@sh) December 20, 2012

Got a really nice "thank you" email from @simplify. I'm glad I made the switch from BofA more and more each day.
— Justin Plock (@jplock) December 20, 2012

The folks at Simple write nice holiday/thank you letters :) /cc @simplify
— Justin Thiele (@justinthiele) December 20, 2012

There have also been several positive responses to my posting of this blog on LinkedIn and positive reaction on Google Plus and Facebook. Interestingly, even though the email may feel a bit impersonal to some, I realized there was a person behind this nice email when I tweeted about my experience. In response to my showing of appreciation, CEO Josh Reich immediately responded to my tweet. Nice touch.

@jimmarous @simplify Thanks Jim :)
— Josh Reich (@i2pi) December 20, 2012

Cynics could argue that a 'thank you' email just adds to an already overstuffed email in box and that many may just do a quick scan over the email and throw it out. On the other hand, someone like me could be struck by the simplicity of the effort and amazed that other banks don't do the same.

I have a single message for the other banks I do business with and those that continuously tout their commitment to great customer service and an enhanced customer experience . . .

Don't underestimate the power of a Simple thank you!

Addendum: Never Underestimate the Power of a Simple Account Agreement

Today I received an email detailing changes to my account agreement. I was expecting the normal end of year bank adjustments that would increase fees, limit my flexibility and/or reduce my benefits.

Instead, Simple went against the norm by increasing the my account functionality without an increase in fees. They even explained a bit more about their remote deposit capture capability and how I could leverage the new changes to improve my achievement of my goals.

And while the linked account agreement was rather lengthy, the email provided me with all of the changes in plain English in 130 words *(including another 'Thank You' and 'Happy New Year'.

What a nice way to begin a new year as a customer of Simple.