Robinhood is taking on Bank of America, Citigroup, and JPMorgan
Robinhood (HOOD) is going after the big banks and their ATMs for deposits.
The trading platform turned quasi-bank and wealth manager unveiled two new products that will compete for business with America's largest legacy banks, including JPMorgan (JPM), Citigroup (C), and Bank of America (BAC).
Robinhood Banking will provide access to traditional checking and savings accounts with an annual percentage yield of 4%, provided one is a member of the platform's Gold service. FDIC insurance is on offer from Robinhood's tie-up with Coastal Community Bank.
Read more: 10 best high-yield online checking accounts for March 2025 (up to 7.00% APY)
Furthermore, the company is promising to deliver "cash to your door" through an app similar to Uber's (UBER) if you are a banking customer.
Robinhood co-founder and CEO Vlad Tenev told Yahoo Finance that the company wants to be a one-stop destination for people to manage their wealth (see video above).
He added that there is demand for home cash delivery as people try to avoid various ATM crimes, "especially in San Francisco." Instead, a person's cash will show up at their house in a large nondescript envelope, Tenev said.
Tenev didn't rule out exploring a bank charter down the line. The company originally explored the idea of one in 2019 but deemed it too costly.
Robinhood Strategies will serve as a wealth management service with a 0.25% annual fee, capped at $250, for its premium Gold subscribers. Users with as little as $50 can access portfolios with exchange-traded funds (ETFs) managed by the company's investment experts, or what it calls a "private banker." For a $500 minimum, investors will unlock access to individual stocks in the portfolios.
Read more: Robinhood Gold Credit Card review: 3% cash back for investors
Tenev and Robinhood have continued their breakneck pace of new products from last year.
Earlier this month, the company debuted a prediction markets hub in its app. The contracts allow users to wager on everything from what the fed funds rate could be in May to NCAA tournament games.
In October 2024, the company launched event contracts for the presidential election. Customers of the platform were able to trade on "who will win the 2024 presidential election."
The platform provider also debuted futures and index options trading.
And it has since released Robinhood Legend, billed as a sleeker platform that targets more sophisticated traders.
Robinhood Legend allows users to open up to eight charts in a single window, and it could elevate various technical indicators such as Bollinger Bands.
Watch: How TD Ameritrade's former CEO sees AI impacting trading
Tenev said he isn't worried that Robinhood won't be able to shake its meme stock image. But he did acknowledge the company has work to do to make its new services successful.
"We believe, investors under-appreciate Robinhood's broader financial/money platform, beyond its core focus on active traders," Bernstein analyst and Robinhood bull Gautam Chhugani wrote. "Robinhood is also leaning into disruptive technologies to bring down the cost of financial access, which has historically been only available to only the elite (high net-worth thresholds) within banking."
Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Upturn
17 minutes ago
- Business Upturn
Aurionpro Solutions secures major $2.5 million deal with leading Sri Lankan bank
Aurionpro Solutions Limited, a global leader in digital banking solutions, has announced a significant multi-year contract win with one of Sri Lanka's largest and most prestigious banks, featured in The Banker's Top 1000 World Banks list. This marks Aurionpro's second major success in the Sri Lankan market within the past year, underscoring the company's expanding presence in South Asia. Under this strategic agreement, valued above US$ 2.5 million, Aurionpro will implement its advanced iCashpro cash management and transaction banking platform. The deployment integrates cutting-edge AI-driven enhancements powered by and specialized financial functionalities from Fintra. This comprehensive solution covers licensing, implementation, maintenance, and ongoing support—aligned with the bank's long-term digital transformation goals. iCashpro is a next-generation corporate banking platform designed to streamline transaction banking with a focus on delivering a superior and seamless client experience. The platform enhances cash visibility, accelerates time-to-market, and reduces operational costs, providing a full-spectrum solution for corporate banking needs across diverse customer segments. Sandeep Chiber, EVP – Head, APAC & MEA, at Aurionpro Solutions, said, 'This marks the seventh major competitive win in the transaction banking space in Asia over the past few quarters. Our rapid market penetration and emergence as a preferred partner in Asia are attributable to the strength of our nextgen iCashpro platform. Backed by advanced AI capabilities, we have engineered a future-ready transaction banking solution poised to redefine the corporate banking experience for the Bank's clientele. The strong demand and accelerated digitisation across the banking sector in the region further reinforces our commitment to delivering innovative, next-generation solutions. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Yahoo
24 minutes ago
- Yahoo
UK financial regulator partners with Nvidia in AI 'sandbox'
LONDON -Financial firms in Britain will be able to test artificial intelligence tools later this year in a regulatory "sandbox" launched on Monday by the country's financial watchdog, part of a broader government strategy to support innovation and economic growth. The Financial Conduct Authority (FCA) has partnered with U.S. chipmaker Nvidia to provide access to advanced computing power and bespoke AI software through what it calls a "Supercharged Sandbox." A sandbox refers to a controlled environment where companies can test new ideas such as products, services or technologies. The programme is intended to help firms in the early stages of exploring AI, offering access to technical expertise, better datasets and regulatory support, the FCA said. It is open to all financial services companies experimenting with AI. "This collaboration will help those that want to test AI ideas but who lack the capabilities to do so," Jessica Rusu, the FCA's chief data, information and intelligence officer, said. "We'll help firms harness AI to benefit our markets and consumers, while supporting economic growth." Finance minister Rachel Reeves has urged Britain's regulators to remove barriers to economic growth, describing it as an "absolute top priority" for the government. In April, she said she was pleased with how the FCA and the Prudential Regulation Authority, part of the Bank of England, were responding to her call to cut red tape. Nvidia said the initiative would allow firms to explore AI-powered innovations in a secure environment, using its accelerated computing platform. "AI is fundamentally reshaping the financial sector," said Jochen Papenbrock, EMEA head of financial technology at Nvidia, citing improvements in data analysis, automation and risk management. He added that the sandbox will provide firms with a "secure environment to explore AI innovations using Nvidia's full-stack accelerated computing platform, supporting industry-wide growth and efficiency." The testing is set to begin in October.
Yahoo
39 minutes ago
- Yahoo
Agentic AI vendors target developers with early releases
Numerous agentic AI solutions have hit the market in recent weeks, and vendors of the autonomous software systems which perform tasks on behalf of users are squarely focused on the developer community. More than any other technology, since the advent of intelligent process automation and robotic process automation, agentic AI promises to unleash the next generation of automation which will unclog the operational provisioning complexities associated with app modernisation. Application platform providers are targeting developers for two reasons: application platform providers can quickly transform their AI assistants and copilots used largely for code generation into autonomous AI agents, attractive for their ability to automate more tasks and speed the application lifecycle; and, the ease to which these new agents help streamline new workflow automations provides developers with greater access to AI and data-driven technology previously out of reach due to a lack of expertise. As a result, developers are heavily sought after by vendors and service providers rolling out new AI agent tools and platforms. Examples of this trend have played out in the last few weeks. During its Microsoft Build conference, Microsoft rolled out an upgrade of its popular Copilot AI assistant, enhanced through an autonomous coding agent which integrates with GitHub products. At the time of the announcement Microsoft reminded the industry that it is able to target an army of 15 million GitHub Copilot developers, implying that those coders just might be interested in seizing the opportunity to upskill into agentic AI. Late last year, Microsoft revealed a public preview of autonomous agents through Copilot Studio. Now developers can access new agentic capabilities, including 'agent mode,' and 'code review,' to streamline app development, deployment, and troubleshooting. At the same time, new capabilities have been added to Azure AI Foundry Agent Service to help pro developers orchestrate multiple specialised agents. Similarly, during its conference, Pegasystems announced agentic AI features within its flagship Pega Infinity App Studio to ease the development process by injecting AI into learning, design, integration, user experience, and testing of the application lifecycle. The idea, once again, is to speed the app development process through agentic capabilities which include detailed instructions, best practices' guidance, and streamlined integrations through automated third-party connections. Ultimately, the release of these enhanced developer platforms open up new opportunities for developers, through enhanced automation of app development processes to help ease the problematic application lifecycle phase of moving new application architectures into production. This is the phase of app modernisation which DevOps teams have struggled with for years, and the primary barrier of adoption of digital transformations. Overcoming those barriers is the promise of AI agents. "Agentic AI vendors target developers with early releases" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
