Not that simple...

Not that simple…

Simple, a US-based digital banking service founded in 2009, has discovered that moving accounts to its parent bank’s application programming interface (API) is not that simple.

Banking Technology‘s sister publication Paybefore reports.

In the process of moving approximately 100,000 customer accounts to BBVA Compass’ API, Simple blamed unspecified “logistical issues” for its inability to move 0.7% of the accounts gained by BBVA in 2014 with the acquisition of Simple.

“Now that we’re approaching the end of our relationship with our current partner bank [The Bancorp Bank], we have to close all the accounts we haven’t moved yet – including yours,” Simple said in a statement to affected customers. Simple will close these accounts on 13 May, invited the account holders to start afresh. “If you can look past our clumsiness with this move and you’d still like to bank with us, we’d love to have you.”

In late 2015, Simple announced it would eliminate all consumer fees and will rely exclusively on earning interest and interchange for its revenues. The move built on the trend of financial services providers cutting the cost of basic banking services for consumers looking for alternatives to traditional full-service bank relationships.