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Yahoo
03-04-2025
- Business
- Yahoo
Robinhood to launch banking product
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Stock trading platform Robinhood seeks to dive deeper into financial services with the launch of a banking product later this year. Robinhood Banking, set to be rolled out this fall, will offer checking and savings accounts for its gold members featuring services that aim to solve some of the challenges with legacy bank accounts, said Deepak Rao, vice president and general manager of Robinhood Money. 'We want to have the full wallet share with customers,' Rao told Banking Dive, 'but we wanted to do it in our style and make sure that we build something that's no longer reserved for ultra-wealthy individuals.' While announcing the banking product last week, Vlad Tenev, chairman and CEO of Robinhood, also said the firm is adding two other new features, Robinhood Strategies and Cortex. Strategies is an advanced investing service that offers expert-managed goal-aligned portfolios and personalized insights with a cost cap of $250 per year for gold members and no management fees on amounts over $100K. Cortex is an upcoming artificial investment tool that will provide real-time market analysis, investment opportunity identification, and market news updates. Robinhood's credit card, rolled out last year, has around 200,000 cardholders and 3 million people on the waitlist. Following that, the fintech wanted to build an accessible product that members would use to invest and manage their wealth and handle all of their financial transactions. 'Bank account is still, by far, the center of gravity of most financial transactions,' Rao noted. The Menlo Park, California-based fintech aims to bring a 'private banking experience' to its members, including offering the option to apply for a bank account from the app, send money across the world in over 100 currencies and access private banking services like estate planning and professional tax advice. Robinhood's new feature of getting cash delivered to the doorstep physically within an hour will be a differentiating factor and eliminate the need for an ATM, Rao asserts, since bigger banks typically take several days to give money. The fintech plans to have an app dashboard where a customer can get a money order and have it sent to a recipient or order foreign currency to be delivered to their doorstep, the executive added. He said the banking product will be available to current Robinhood gold customers. Robinhood is offering a 4% annual percentage rate on savings and up to $2.5 million in Federal Deposit Insurance Corp. insurance. The fintech has partnered with Coastal Community Bank to offer its banking products. The lender has recently teamed up with fintechs like Dave to facilitate their banking services. Robinhood, which has nearly $200 billion in assets under custody, will use the same security system it uses now to ensure the safety of its customer money, according to Rao. Robinhood eventually wants the banking product to reach worldwide, but first he wants to figure out the best way to pursue what he sees as missing from it — like personal loans, mortgages or home equity lines of credit. The banking app can help members get an idea of their entire net worth when they open the app, including their liabilities not on Robinhood's platform. All liabilities like mortgages, student loans, personal loans, credit card debt, and assets appear on the screen. Members can connect to other accounts through Plaid, Rao said. This isn't Robinhood's first venture into banking. In October 2019, the fintech announced plans for a high-yield cash management account — a second attempt after a previous failed launch in December 2018. The fintech's first savings account initiative was halted since it had failed to notify the Securities and Exchange Commission and Securities Investor Protection Corporation before launching. Robinhood announced plans to rebrand the product into a cash management service following regulatory pushback. In April 2019, Robinhood applied for a bank charter with the Office of the Comptroller of the Currency but chose to withdraw it that December. Since then, neobanks like Chime, SoFi and Revolut have dominated the fintech space. Chime recently added instant loans to its service. Rao says he's not worried about the proliferation of neobanks in the space. He argued that neobanks have failed to gain significant market share from traditional banks because neobanks lack 'backward compatibility' with essential banking features, such as physical checks or comprehensive services like bill pay, mortgage payments, and auto payments that traditional banks offer. 'I think they looked too forward without making it backward compatible,' Rao said. 'They have done good for a niche segment, but they haven't taken business away from legacy banks; that's where most of their market has stopped.' Recommended Reading Robinhood goes live in the UK Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
Now Robinhood says it will deliver cash to your door
Robinhood plans to launch online banking, which it says will include perks like home cash deliveries. The service will offer a 4% annual interest rate, Robinhood said in its announcement. Robinhood is also launching a wealth management platform and AI investment tools. Robinhood said on Wednesday that it is launching an online banking platform for its premium members in the fall, which will include home cash deliveries. In an announcement, the California-headquartered financial technology company outlined a number of incentives that will be offered to Robinhood Banking users, including cash delivery. "Your cash is delivered on-demand right to your doorstep," it said. "No need to search for an ATM." The service offers a 4% annual interest rate and deposit insurance of up to $2.5 million via the FDIC. It will offer international transfers to over 100 currencies and whole-family accounts for partners and children. "Robinhood Banking is thoughtfully designed to be as easy to use as possible, while still delivering cutting-edge features historically reserved for the ultra-wealthy," Deepak Rao, vice president and general manager of Robinhood Money, said. "We're pushing the boundaries of what you should expect from your bank." The fintech firm's gold membership costs $5 monthly or $50 annually and gives users access to Robinhood's premium features. Perks include IRA matches and the option of margin trading. Gold members who opt for the banking services, which Washington-based Coastal Community Bank will provide, would also have access to perks including the chance to get tickets to events like the Met Gala, the Oscars, F1's Monaco Grand Prix, and Coachella. Robinhood said customers would also have access to private plane travel, personal chauffeurs, luxury helicopter rides, and luxury hotel experiences. It did not elaborate on how these perks would work for members. Robinhood also said it would be launching a wealth management platform. Robinhood Strategies would allow investments into a mix of exchange-traded funds (ETFs) and individual stocks. The management fee for those who use the service is 0.25% of the assets under management a year. Robinhood Gold member will pay management fees on $100,000 of assets in their accounts. Robinhood said it would introduce an AI investment tool called Cortex for its premium subscribers. "Over time, Robinhood Cortex will completely transform the Robinhood experience as we strive to bridge that gap and put a premium research assistant right in your pocket," Abhishek Fatehpuria, vice president of brokerage product, said. Read the original article on Business Insider Sign in to access your portfolio
Yahoo
28-03-2025
- Business
- Yahoo
Tech Bros Want Underpaid Gig Workers To Drive Big Wads Of Cash Around For You
During fintech app Robinhood's annual keynote event this week, titled "The Lost City of Gold," the company announced that it was launching a new Robinhood Banking service. That's not really out of the ordinary, there are hundreds of Silicon Valley nerds trying to crack the code of reinventing banks. Elon Musk, for example, is obsessed with the idea of turning Twitter (also known as X The Everything App) into a bank for some reason. Robinhood Banking is different from most other attempts, however, as it offers special perks like getting "cash delivered on-demand right to your doorstep, eliminating the need for an ATM." If there's one thing I wish I could do it's to have a stranger access my bank account, retrieve a large amount of cash, risk potential harm carrying a big wad of greenbacks across town, and then making a surreptitious cash transaction on the street in front of my house. That sounds like it would make my life so much easier, despite the fact that I haven't regularly carried cash or paid for anything with it in close to a decade. "With Robinhood Banking, we're trying to solve many of the challenges presented by legacy banks," said Deepak Rao, GM and VP of Robinhood Money. "Robinhood Banking is thoughtfully designed to be as easy to use as possible, while still delivering cutting-edge features historically reserved for the ultra-wealthy." Read more: There's A Relic Runway From America's Failed Supersonic Future Hiding In The Everglades Robinhood hasn't provided any further information about the cash delivery service yet. According to Entrepreneur, there's "no word yet on how the cash deliveries will take place, what identification will be required, or how the company will ensure the safety of its drivers." The fine print of the announcement does read "Cash delivery service coverage varies based on geographic location." so maybe it'll be limited to big cities. I imagine there is a reason that banks and large retailers use armored vehicles and teams of trained threat-assessors to move their money from place to place. I'm not sure I would trust the Uber Eats guy who skims a couple fries off the top of your McDonald's order to bring my cash without taking an Andrew Jackson or two for themselves, and I'm pretty sure I'm not comfortable risking their wellbeing carrying cash in public for a gig worker economy job that pays worse than minimum wage. There are so many ways this could go wrong, and nothing about it seems like a good idea. Maybe leave this one on the cutting room floor, Robinhood. Want more like this? Join the Jalopnik newsletter to get the latest auto news sent straight to your inbox... Read the original article on Jalopnik.
Express Tribune
27-03-2025
- Business
- Express Tribune
Robinhood to offer wealth management and private banking for everyday investors
Listen to article Robinhood is stepping up its game in the financial services space, rolling out wealth management and private banking offerings aimed at retail investors with smaller portfolios. The move signals the trading platform's ambition to shape user financial behavior beyond trading, offering tools traditionally reserved for high-net-worth clients. The company on Wednesday unveiled 'Robinhood Strategies', a new wealth management service exclusively for its premium Gold subscribers. The service charges a modest 0.25% annual fee—capped at $250—and allows users with just $50 to access expert-managed portfolios of exchange-traded funds. Those investing $500 or more will also gain access to individual stocks curated by Robinhood's in-house investment team. Steph Guild, President of Robinhood Asset Management and a former JPMorgan Chase executive, said the platform is filling a gap in the market. 'When we looked across the landscape today, we felt there was a gap and an opportunity,' she said, adding that the service aims to level the playing field for everyday investors. The initiative reflects a growing demand for accessible financial planning tools. A 2023 survey by Betterment found that retail investors who had access to financial advisers reported significantly higher confidence in managing their finances. In addition to wealth management, Robinhood is set to launch a private banking service for Gold users later this year. The offering will include estate planning, tax advice, and luxury perks such as tickets to the Met Gala and the Oscars. The push into premium services is part of Robinhood's broader strategy to 'democratize' financial tools once limited to the wealthy. 'We're not going after someone who has $10 million. We're going after everybody else,' said Deepak Rao, general manager and vice president of Robinhood Money. An AI-powered investment tool is also in the pipeline for 2025, which will offer real-time market analysis and insights—another nod to Robinhood's efforts to bring institutional-grade features to everyday users. The expansion comes as Robinhood's stock has climbed 29% so far this year, bucking broader market trends. The Nasdaq Composite (.IXIC) has declined by 5.4% over the same period.
Zawya
27-03-2025
- Business
- Zawya
Robinhood to bring wealth management, private banking to retail investors
Robinhood is rolling out wealth management and private banking services for investors with modest portfolios, as the trading platform looks to have a bigger influence on its users' financial habits. The company said on Wednesday it is launching 'Robinhood Strategies' — a wealth management service with a 0.25% annual fee, capped at $250, for its premium 'Gold' subscribers. Users with as little as $50 in investments can access portfolios of exchange-traded funds managed by Robinhood's investment experts. A $500 minimum investment will unlock access to individual stocks in the portfolios. The move highlights growing demand for professional advice among retail traders, who are increasingly seeing investing as a strategic path to building wealth and securing financial independence, rather than just a hobby. A survey of retail investors by Betterment last year showed that those with financial advisers felt more confident about their personal finances. Robinhood Asset Management President Steph Guild, a JPMorgan Chase alum, said the new product could help level the playing field as personalized wealth management has long been the domain of high-net-worth clients. "When we looked across the landscape today, we felt there was a gap and an opportunity," she said. It will also roll out an AI investment tool later in 2025 to provide real-time market analysis and insights. PRIVATE BANKING The company will also launch a private banking product for its Gold subscribers later this year with estate planning, tax advice and perks such as tickets to the Met Gala and the Oscars. Tapping into users' demand for premium services could help it boost the adoption of its Gold subscription — which costs $5 a month or $50 a year — and fits into Robinhood's strategy of "democratizing" access to products traditionally reserved for the ultra wealthy. "We're not going after someone who has $10 million. We're going after everybody else," said Deepak Rao, general manager and vice president of Robinhood Money. The company's shares have risen 29% so far this year, while the Nasdaq composite index has dropped 5.4%. (Reporting by Niket Nishant and Manya Saini in Bengaluru; Editing by Sahal Muhammed) Reuters
