investment platform robin hood added more than $3.4 billion through automated customer account transfer services in the first quarter, an increase of 100% sequentially.
The company is growing deposit volumes “fueled by a younger customer base that is capturing a share of global wealth” and expects to meet its multi-year deposit growth target of 20%, the chief financial officer said. said the person. jason Warnick The company made this statement at its financial results conference on May 8th.
He said the Menlo Park, Calif.-based company reported $11 billion in net deposits in the first quarter, more than double last year’s quarterly average.
In addition to acquiring customers from existing financial institutions, Robinhood receives deposits from existing and new customers, Wernick said.
Wernick said deposits were “75% customer contributions and 25% net acquisitions from existing companies,” adding that the company had $5 billion in net deposits in April.
Deploying technology for deposits
According to a May 2023 report by Nasdaq, More than half of Gen Z Americans invest in some way because of the ease of investing and easy access to financial information.
Including major financial institutions, US Bank, TD Wealth and Envest Net introduced an automated investment solution that directs customers to maintain their accounts with traditional financial institutions rather than moving to fintech platforms.
US Bank is offering customers $100 to open an automatic investor account, according to the bank’s website.
TD Wealth launched Robo-Advisor, an automated investment solution, in October 2021.
As more people dive into the stock market in search of better returns, banks are seeing an exodus of customer accounts to investment fintechs like Robinhood. tick fava beansSaid Ban See previously worked as group president of product innovation at wealth tech company Envestnet. She quit her job last month.
“Deposits are hard to come by this year (and automated investing services) are a way to drive engagement and a way to retain deposits,” Fava said. “This is a way for banks to keep money in the ecosystem and drive engagement.”
Robinhood expands its services
Robinhood is expanding its product offerings. march robinhood gold credit cardAccording to the company’s earnings report, there are more than 1 million applicants on the waiting list.
Almost half of bank customers want a one-stop-shop experience for their financial needs, and Robinhood’s introduction of credit cards fits this demand very well, especially recently with checking, high-yield savings accounts, We have started opening retirement accounts.” Sean O’Brienlead consultant in the wealth management practice of a consulting firm CapcoSaid Ban.
