Robinhood, which disrupted the brokerage industry with its commission-free model, is now targeting traditional banks. The San Francisco-based company will roll out “checking and savings accounts with premium benefits” later this year, but only for its “Gold” subscribers, who pay a $5 monthly or $50 annual subscription fee.
Private Banking Experience
However, Robinhood is not an FDIC-insured bank, nor is it applying to become one. Instead, it is partnering with Coastal Community Bank to offer banking services on its platform. The services on Robinhood’s application will provide a private banking experience.
Banking customers on Robinhood will also receive interest of around 4 per cent on their savings and will have access to estate planning and tax advice.
“You get these incredible products, you get really high interest rates,” Deepak Rao, Vice President and General Manager of Robinhood Money, told Bloomberg in an interview. “Why don’t we do that, but give it to everybody?”
Furthermore, Robinhood’s banking customers will also be able to request cash to be delivered to their doorstep via the app on the same day, according to the platform’s claims. Although some traditional banks offer such cash-delivery services, it usually takes several days.
Launch of Wealth Management Services
Additionally, Robinhood banking customers will have access to personalised wealth management products under the brand Robinhood Strategies. The offering will allow consumers to invest in single stocks and exchange-traded funds while reducing taxable gains. Gold customers can access it now, and it will be available for all customers next month. However, there will be a 0.25 per cent management fee associated with these services.
The finance giant will also enhance its wealth management services with an artificial intelligence offering called Robinhood Cortex. It will allow investors to optimise their portfolios with analysis and insights.
Meanwhile, Robinhood’s expansion strategy is evident in its other moves. The company recently expanded its trading offerings with a new prediction markets hub to enable users to trade on the outcomes of major events. Traders can speculate on the outcome of various events, from the Federal Reserve’s interest rate decisions to college basketball tournaments.
The platform also aims to capture markets outside the US and launched options trading in the UK last month.
Robinhood, which disrupted the brokerage industry with its commission-free model, is now targeting traditional banks. The San Francisco-based company will roll out “checking and savings accounts with premium benefits” later this year, but only for its “Gold” subscribers, who pay a $5 monthly or $50 annual subscription fee.
Private Banking Experience
However, Robinhood is not an FDIC-insured bank, nor is it applying to become one. Instead, it is partnering with Coastal Community Bank to offer banking services on its platform. The services on Robinhood’s application will provide a private banking experience.
Banking customers on Robinhood will also receive interest of around 4 per cent on their savings and will have access to estate planning and tax advice.
“You get these incredible products, you get really high interest rates,” Deepak Rao, Vice President and General Manager of Robinhood Money, told Bloomberg in an interview. “Why don’t we do that, but give it to everybody?”
Furthermore, Robinhood’s banking customers will also be able to request cash to be delivered to their doorstep via the app on the same day, according to the platform’s claims. Although some traditional banks offer such cash-delivery services, it usually takes several days.
Launch of Wealth Management Services
Additionally, Robinhood banking customers will have access to personalised wealth management products under the brand Robinhood Strategies. The offering will allow consumers to invest in single stocks and exchange-traded funds while reducing taxable gains. Gold customers can access it now, and it will be available for all customers next month. However, there will be a 0.25 per cent management fee associated with these services.
The finance giant will also enhance its wealth management services with an artificial intelligence offering called Robinhood Cortex. It will allow investors to optimise their portfolios with analysis and insights.
Meanwhile, Robinhood’s expansion strategy is evident in its other moves. The company recently expanded its trading offerings with a new prediction markets hub to enable users to trade on the outcomes of major events. Traders can speculate on the outcome of various events, from the Federal Reserve’s interest rate decisions to college basketball tournaments.
The platform also aims to capture markets outside the US and launched options trading in the UK last month.
This post is originally published on FINANCEMAGNATES.
