Robinhood, the brokerage app known for its popularity among millennials, is getting into more traditional consumer banking with the launch of a new checking and savings account. To draw in more customers, the company is offering a 3% interest rate on those accounts—a basically unheard-of rate.
The existing app allows consumers to buy and sell stocks with no minimums and no fees. The new product is a big push to expand Robinhood’s existing client base. Robinhood customers will also have access to 75,000 ATMs and around-the-clock customer service. Customers can write checks, make mobile deposits, and withdraw cash from the account like they would any other. Sometime next year, the company plans to launch bill pay.
In the four years since its launch, the broker has accumulated 6 million accounts. It’s still a relatively low number when compared with industry veterans like Fidelity, which manages 26.7 million accounts. But Robinhood has enjoyed the benefits of organic growth.
“Our cost of acquisition is literally a tenth of what our competitors pay, and when we enter into competing with traditional banks with checking and savings, our cost of acquisition will be one-hundredth or one-thousandth of what they pay,” says Baiju Bhatt, cofounder and CEO of Robinhood.
It’s true that banks spend a lot on getting new customers. In 2017, Chase Bank spent $949 million on marketing, according to a February analysis by marketing consultant EMI Boston. The year it launched its checking and savings product Marcus, Goldman Sachs spent $111 million on marketing, a 270% jump from 2016.
In the last several years, banks have been eager to challenge upstart fintech companies with their own updated apps and tech innovations like JPMorgan Chase’s all-digital bank Finn, BBVA’s acquisition of online bank Simple, and Early Warning’s Venmo competitor Zelle.
Meanwhile, these competing startups—many of which started with one standout product—have continued to expand in such a way that they’re starting to look like more traditional banks. PayPal, which started out as a way to make purchases on eBay, is now a company that offers everything from spending and credit accounts to remittances. Customers of Qapital, originally an automated savings app, now have debit card-linked savings accounts and the ability to invest.
Likewise, the Robinhood announcement is more than just checking and savings; it’s a step toward becoming a bona fide bank. Robinhood has not yet gone through the process of obtaining a bank charter, but its CEO says that it could in the future.
Whether it’s a major motion picture release or just someone trying to finish their first animated sequence, animation starts with knowing the basics of the medium. You can learn the tools of the cartoon artist and start creating animations of your own with the training in The Complete Beginner’s Guide to Animation Bundle. Right now, this bundle is over 90 percent off at just $20 from TNW Deals with promo code: GREENMONDAY20.
Yesterday, Razer announced the launch of its SoftMiner program which uses a computer’s redundant resources to mine cryptocurrency when the user is “away from keyboard” (AFK). Only the user doesn’t get any of the mined cryptocurrency, all they get is store credit at Razer, known as Razer Silver. When a person runs the SoftMiner program on their PC they are actually contributing to a third party platform called GammaNow, Motherboard reports. This third party is responsible for managing the mined cryptocurrency which will include Ether and a handful of other altcoins. GammaNow pays Razer a fee for all the cryptocurrency… This story continues at The Next Web