26 February 2018
visit www.ebaday.com

Simple lays off ten percent of staff in bid to return to tech roots

17 August 2017  |  11852 views  |  0 Web design

Joshua Reich, the CEO of US digital neo-bank Simple is pledging to return the business to its roots, having spent the past few years "acting like a bank instead of a technology company".

Acquired by Spanish bank BBVA for $117 million in 2014, Simple has since been bogged down in rebuilding its core infrastructure and transferring accounts to new US banking partner BBVA Compass.

The initiative has not always run smoothly, with Simple being forced to write to a number of customers last year advising them that they would have to open new accounts due to logistical problems in transferring their banking details to the new platform.

The acquisition has also proven painful for BBVA Compass, which took a $60 million goodwill impairment charge against Simple in its 2016 fourth quarter results statement.

BBVA Compass has nonetheless remained upbeat, claiming that Simple has been signing up 30,00 new customers a month.

Now it seems the bank is rethinking it raison d'etre, laying off ten per cent of its staff and taking its foot off the gas in order re-assesses its role in the market.

In blog post, Simple chief Reich says: "We have been focused on growth instead of innovation. We have been acting like a bank instead of a technology company. And that changes today."

A number of high profile executives are among the 33 staff to be let go as a result of this commitment, including Simple’s chief marketing officer, chief people officer, vice president of operations, and vice president of engineering

Says Reich: "Today, we are recommitting to being a technology company that is completely focused on product. We are re-designing our team so that everything we do is in support of this focus."

In a statement sent to GeekWire, Simple CMO Michelle Broderick, wrote: "“One of the best parts of working with a high-functioning executive team is that you all work together to make decisions on what is right for the company as a whole, and not what is right for any one function, team, or person. We made the hard decision that right now is not the time to grow Simple’s customer base, and without the thrill of growth a company does not need a fully staffed executive team, or a CMO. A change like this is not something we undertook lightly and we worked hard on the best path forward for the company and are now working together on the transition plan."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Simple bungles customer account transition to BBVA

Simple bungles customer account transition to BBVA

18 April 2017  |  6365 views  |  1 comments | 9 tweets | 10 linkedin
BBVA Compass takes $60m write-down on Simple

BBVA Compass takes $60m write-down on Simple

03 February 2017  |  13515 views  |  0 comments | 24 tweets | 18 linkedin
Simple to move customer accounts to BBVA Compass platform

Simple to move customer accounts to BBVA Compass platform

04 April 2016  |  8001 views  |  0 comments | 10 tweets | 6 linkedin
Former Simple exec joins BBVA as head of Open API

Former Simple exec joins BBVA as head of Open API

24 February 2016  |  8435 views  |  0 comments | 16 tweets | 8 linkedin
Simple adds support for TouchID and Android Wear

Simple adds support for TouchID and Android Wear

18 September 2014  |  6087 views  |  0 comments | 1 tweets | 4 linkedin
BBVA buys Simple for $117m

BBVA buys Simple for $117m

20 February 2014  |  12472 views  |  1 comments | 11 tweets | 17 linkedin
Simple brings 40k customers on-board in first year

Simple brings 40k customers on-board in first year

16 July 2013  |  7128 views  |  0 comments | 9 tweets | 4 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.nextgenbanking.co.ukVisit www.vasco.comvisit www.ebaday.com

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
12841 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10955 views 4 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
9516 views comments | 15 tweets | 27 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
8871 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
8804 views comments | 11 tweets | 14 linkedin

Featured job

Find your next job