I think this is just a PR (over-)reaction to the current negative image of "banks" and provides some space between Simple and the "banking" practices it skewers in its marketing. (It is somewhat problematic to say "banks are bad for you" and "we're not a bank" when your name screams "we're a bank")

I guess it's also somewhat logically defensible, since FDIC-insured credit unions are just as qualified to be Simple's back-end partners. Though it still feels like a dodge, given how foggy the relationship is between Simple and their partner institutions. It feels like they want people to not think about Simple accounts supporting places like BofA, while still being free to partner with BofA in the background.

That said, I wonder if they've considered a "community-focused" account option, where people can specify that they only want their funds to be deposited with credit unions, accepting whatever slightly worse terms come with less competition.