US banking startup banksimple is raising funds with a view to launch later this year using white-labelled technology and processes supplied by existing financial institutions.
The subject of a recent Twitterview
with Finextra, banksimple is seeking to take advantage of public disillusionment with financial services firms.
The project is led Josh Reich, the New York-based founder of data specialist i2pi, and includes a team of "technologists, former banking consultants and user experience people".
Operating in stealth mode, banksimple has been vocal in its criticism of traditional US banking practices and has been inviting followers to register support for its campaign.
In a recent update on its corporate blog, the banksimple team have provided more background on their launch plans. The project's founders say that to start up the bank from scratch would entail an expensive three-year timeframe.
"It is near impossible to innovate with an imposed three year launch delay," the blog states. "The best way to serve your needs is to launch quickly and to adapt our offering to meet your individual needs. Modern technology lets us do that. To achieve this we are planning to launch with a special corporate structure."
This will entail bringing together a group of financial institutions to provide banksimple's underlying banking services. All deposits will be held by partner banks in insured accounts.
"By taking this structure, we get to market faster and get to benefit from some fantastic technology. While you may not have heard of our partners (which we haven't yet announced,) they have been quietly working on ways to bring the speed of technology innovation to the staid world of banking," says banksimple. "Our technology is nearly ready, our partners are lined up and we are now in the process of raising funds to get everything in place for a launch later this year."