FinTech News
Robinhood Reveals Latest Product Suite Including Banking
Following a similar keynote event last year, Robinhood CEO Vlad Tenev returned to the stage this week to announce the latest features and services coming to the platform.
About Robinhood Strategies, Banking, and More
During Tenev’s presentation, three new features were unveiled: Robinhood Strategies, Robinhood Banking, and Robinhood Cortex.
First, Robinhood Strategies is a new wealth management service available for both taxable and retirement accounts. The “expertly-managed” accounts give users access to financial advice to help them effectively plan for their futures and feature a diversified mix of single stocks and ETFs. Strategies accounts also include timely market and portfoio insights, Monte Carlo returns simulations, tax loss harvesting, and more.
While Robinhood Strategies accounts charge a 0.25% annual management fee, that fee is capped at $250 per year for those with Robinhood Gold. This means that a Gold customer with an account balance of $500,000 would effectively only pay a fee of 0.05%.
Robinhood Strategies is available to all Robinhood Gold members now and will be rolling out to others in April. To mark the launch, through May 20th, Gold members opening Strategies accounts can get a 1% transfer boost of up to $500 while non-Gold members can get a 1% boost of up to $250. Additionally, Gold members who fund a Strategies account by June 30th will get their first $1,000 managed fee-free through the end of the year (the same offer applies on the first $500 for all other customers).
Next, Robinhood also revealed its brand new Robinhood Banking platform, which will “bring the private banking experience exclusively to Robinhood Gold members.” One novel feature of this digital account that was demonstrated in the keynote is the ability to request cash deliveries. Beyond that, users will be able to send money in more than 100 currencies, use wire transfers, track their net worth, and more.
Robinhood Banking is set to launch this fall. When it does, the Robinhood Credit Card app will transform into the Robinhood Banking app. Speaking of the Robinhood Gold Card, one year after it was announced, 100,000 members have been able to obtain it. However, a reported 3 million users remain on the waitlist. This week, the app will invite another 100,000 members to apply for the 3% back card.
Lastly, Robinhood Cortex is an AI investment tool that will provide real-time analysis to investors. One example is Stock Digests, which will help customers understand why a given stock may be moving in one way or another. Also mentioned is a Trade Builder feature that can introduce investors to new strategies.
Cortex is expected to launch later this year.
My Thoughts:
Watching the Robinhood presentation live, I was excited to see that (as a Gold member) I immediately had access to the newly announced Robinhood Strategies platform. That experience stands in contrast to the experience I had with the Gold credit card, which I and apparently plenty of other people are still waiting for. In fact, I signed up for Robinhood Gold because of that credit card announcement, so I am a bit miffed that it’s taking so long — and that there’s still no word on whether I’ll be part of this next 100,000-person invite wave.
Setting that aside, a lot of what Robinhood presented seemed truly interesting. While I can’t really imagine a scenario where I’d need to have cash Uber’d to me, I still think it’s an intriguing idea — although I’m sure availability will heavily depend on your location. As for Robinhood Strategies, I went ahead and opened another IRA using the platform and look forward to sharing a review in the future.
More than anything, though, this presentation reminded me that I am still a fan of Robinhood despite the ups and down the company has had over the years. Even if I may not be the target market for every one of their features, I do love their interface and the way they make certain opportunities accessible. With that, I look forward to seeing these new services roll out and hope they deliver another keynote one year from now.
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