Online Bank Shutdowns, Customers Could Not Access Their Money

Online-based bank, Simple, shuts down on Saturday, and customers transitioning to the bank's parent company, BBVA, could not access their accounts.

In January 2021, the app-only bank officially announced, through an email to its users, that it was closing, The Verge reported. The company vowed to remain open during the transition period for its clients to transfer their money to BBVA USA. S

Unfortunately, instead of a silky smooth transition, customers were faced with error messages, such as "system error" and prompts that claimed their account information didn't exist," The Verge reported.

The website of BBVA USA now banners a red warning to users. "Our customer service is experiencing longer than usual wait times," the parent company said on its website.

If, however, a user will be visiting the Simple transition page, they will be welcomed with a different red banner.

"To Simple customers converting to BBVA: This has not been a good conversion experience for many of you," the company said on the transition page.

Furthermore, the company apologized to their users and informed them that they have extended their call center hours to accommodate everyone.

The company explained on its website that it was encountering a high volume of traffic that overwhelmed the system. Thus, the waiting time was extended.

Simple Closing Down

BBVA acquired Simple in 2014 for $117 million. BBVA, on the other hand, was later acquired by PNC in late 2020, Forbes reported.

After the purchase, PNC announced plans for cost-cutting to focus on its core banking platform.

It was reiterated in the said announcement that customers did not need to worry about their accounts.

"You can continue to access your account and your money through the Simple app or online at Simple.com," the company told users in an email as reported by The Verge.

Furthermore, the bank also assured users that they will communicate openly about what to expect each step of the way.

Simple as a Game-changer

Back in 2012, Simple was a fintech company changing the landscape of banking in the United States. It was set to offer the digital-first approach to banking.

One of its co-founders simplified the vision of the game-changing bank to: "a bank that doesn't suck," The Verge reported.

Moreover, the app was useful to its users in terms of budgeting and organizing their money. Customers had the option to set savings goals and transparently break down their spending.

When it launched in 2010, the said features were not readily available in other traditional banks.

The Verge also reported that when Simple broke the internet, their waiting list exploded to 125,000 people. These were people lured in as the new app-only bank promised a more streamlined experience of managing their finances.

Also noteworthy was when Google Wallet, which ceased to operate in 2016, suggested Simple as a preferred replacement, CNET reported.

This article is owned by TechTimes.

Written by: Teejay Boris