Robinhood made its name as a stock trading app but, in recent years, the company has been making a concerted push to become a full-fledged financial services firm akin to Fidelity or Charles Schwab. On Wednesday, it took another step toward that goal by announcing Robinhood Banking, a service that provides "traditional checking and savings accounts with luxury benefits," as well as a wealth management product called Robinhood Strategies.
According to Steph Guild, a former JPMorgan executive who is president of Robinhood Asset Management, the company's goal is to fill a gap in the current wealth management landscape—one that is marked by pricey investment advisors on one hand and low-cost generic robo-advisors on the other. In practice, this will entail Robinhood using AI to offer active portfolio management to its customers that goes beyond what the low-end advisors currently offer. Features include personalized portfolio displays as well as personalized notes delivered via written and audio messages in the app.
