Magazine article American Banker

BankSimple's Kit Allows Seamless Customer Vetting Simple

Magazine article American Banker

BankSimple's Kit Allows Seamless Customer Vetting Simple

Article excerpt

Byline: Jeremy Quittner

Though Simple Finance Technology Corp.'s BankSimple has yet to launch, it is becoming an early adopter with the technology it uses to open accounts and vet new customers.

The Brooklyn company promotes BankSimple as a worry-free alternative to the traditional bank. Simple Finance is one of the first companies to use a software development kit from Andera Inc. of Providence, R.I., to design its own account-opening process, Andera's chief executive Charlie Kroll says.

The kit provides a consistent user experience on the front end while on the back end, Andera searches multiple databases of credit and identity records, Kroll says.

Account verification is frequently an alienation point for customers when they submit an application online, experts say.

"Andera's software development kit ... does not redirect customers to an external site, and this minimizes consumer attrition, which is always a concern with banks of this kind," says Julie Conroy McNelley, a senior risk and fraud analyst at Aite Group LLC.

Andera's fraud detection network continuously searches for fraudulently opened accounts across its base of customers.

"They want to make sure this process is smooth," says Jacob Jegher, a senior analyst at Celent. "They will also leverage the risk-management competencies of Andera."

Simple Finance said Wednesday that it will provide access to 43,000 Allpoint-branded surcharge-free ATMs through a deal with ATM National Inc., a unit of Cardtronics Inc.

Simple Finance also plans to offer Visa Inc. debit cards.

It expects to launch BankSimple following a six-week test in October. …

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