BBVA told users of Simple — the pioneering mobile and online banking app that it acquired for $117m in 2014 — that it is planning to shut down the service, moving accounts to BBVA’s USA business in the process.
The move is part of an ongoing effort at BBVA — which had been an active investor and acquirer of startups — to streamline its business as it works on closing a merger with PNC. The latter bank announced in November last year that it would acquire the U.S. business of BBVA for $11.6 billion. The response from Simple customers has been predictably downbeat. Users migrated to the service specifically to have a faster and more modern experience compared to what they were getting through previous, incumbent providers. It’s also a pain to change banking providers and many customers were longtime users. “BBVA USA has made the strategic decision to close Simple,” the note reads. “There is no immediate impact to your accounts at Simple and nothing you need to do at this time. Since your deposits are already housed at BBVA USA, they will remain in FDIC-insured accounts there, up to the applicable limits. In the future, your Simple account will become exclusively serviced by BBVA USA, but until then you can continue to access your account and your money through the Simple app or online at Simple.com.”