Social Media + Zappos + Plastic Cards = BankSimple Posted by AVCU on 4:41 PM

A new "banking" start-up is trying to revolutionize banking by not being a bank at all. A former Twitter executive is combining elements of social media, the service level of Zappo's, and smartphone applications with a single credit card and debit card tied to accounts at other more traditional financial institutions. The intent is to deliver daily financial services to consumers in an entirely new way. In fact, BankSimple isn't a bank at all. It has no bank charter and is more of a middle man between you and traditional financial institutions.

BankSimple's features look like this: FDIC insurance on deposits, no overdraft fees, a fee-free 30,000 ATM network (and rebating of out of network fees), free on-line bill payment, deposits by mail or picture from smartphone. BankSimple's income derives from interchange and interest rate margin between deposits and loans (which are held by traditional institutions used by BankSimple).

Read the details at How an Ambitious Startup Wants to Revolutionize Banking