Pure online banks never quite materialized as the force many thought they would. But we continue to see some interesting niche plays from start-ups that think they can make the model work.

Consider Simple.com, which has raised $13 million from VCs and recently opened online. The goal of this company is differentiated from other online banks, which have focused mainly on cost. Simple.com, by contrast, “has a straightforward but wildly ambitious goal: Get rid of everything customers hate about banking,” according to CNN.

“At Simple, a real person will answer your phone call directly--the same person every time if possible. You will get intuitive Web and mobile apps that can field natural-language questions like, 'How much did I spend on taxis in New York last month?' And you'll get it without any of the surprise fees customers hate. No monthly account fees, no overdraft charges, no debit-card fees or charges for using another bank's ATMs.”

The business model is wholly different from the early online banks, such as the ill-fated NetBank, which was in fact a FDIC-insured bank. By contrast, Simple.com is a Web-based front end to traditional banks that have partnered with Simple.com. This sounds somewhat similar to Tribed, which aims to open bank front-ends that are tailored to highly specific niches. One idea was for a bank called Wags, which caters to dog lovers.

For more:
- here’s the article

Related articles:
Bank of dog lovers: a sign of the times?
Citi calls new website "industry breakthrough"
The bank branch of the future?