Simple
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
Simple was a Portland-based online banking company founded in 2009 in Brooklyn as BankSimple by Joshua Reich and Shamir Karkal. Positioning itself as 'a bank that doesn't suck,' it offered fee-free online checking and budgeting tools aimed at consumers disillusioned with traditional banks after the 2008 financial crisis. It launched to the public in 2012, grew to over 100,000 customers, and was acquired by Spain's BBVA for $117 million in February 2014, continuing to operate as a standalone business.
02 / Simple FAILURE REASONS
Failure reasons
Simple was not killed by its own failure but by a parent's strategy: after BBVA acquired it in 2014, the founders departed and the brand's independence eroded. When BBVA agreed to sell its U.S. business to PNC for $11.6 billion in November 2020, it made the 'strategic decision' to close Simple and migrate its customers to BBVA's own app, judging PNC would prioritize its existing online banking technology.
03 / EVENT HISTORY
Events in the structured record
- Company founded
Joshua Reich and Shamir Karkal found BankSimple in Brooklyn, New York, with seed capital from Jerry Neumann; the company later renames to Simple and moves to Portland, Oregon.
- Public launch
Simple launches publicly as an online bank with fee-free accounts and budgeting tools; by early 2013 it has 20,000 customers and has processed over $200 million in transactions.
- Acquired by BBVA
On February 20, 2014, Spain's BBVA acquires Simple for $117 million in cash; Simple continues operating independently and later transitions to BBVA USA.
- Shutdown
On January 7, 2021, BBVA announces it will close Simple ahead of PNC's acquisition of BBVA USA; on May 8, 2021, Simple is formally closed and remaining accounts are transitioned to BBVA checking and savings accounts.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
Simple raised venture funding including a $10 million round in August 2011 led by IA Ventures and Shasta Ventures, and was acquired by BBVA for $117 million in 2014.
- 02
BBVA's November 2020 agreement to sell its U.S. business to PNC for $11.6 billion led to the strategic decision to close Simple.
- 03
Simple was formally shut down on May 8, 2021, with customers migrated to BBVA accounts; no reliable loss figure was disclosed.