The Simple deal just got complicated. Banking services provider Simple was purchased by BBVA, the second largest bank in Spain, for $117 million a few months ago, but new reports indicate that its growth and user base may be much lower than anticipated. Quartz obtained a leaked email which says that Simple’s having issues attracting and keeping users. According to the report, Simple has just 33,387 active users in April, which was a 4.5% increase from March. Most reports around the time of the acquisition had the number at 100,000. The internal email, accidentally sent to a Quartz reporter, noted that “customer acquisition is slower than expected” and “deposits per customer are growing slower than expected.” In a blogpost, Simple CEO Joshua Reich responded to the Quartz report, saying Simple has a “higher standard” than most financial institutions, who define an “active user” as someone who makes one financial transaction a month. The post also mentioned that Simple has seen 330% growth over the past year — mostly through word of mouth — and that the company is planning on expanding its marketing reach. It certainly has the funds to up its marketing spend now. In light of these new numbers, […]
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