Robinhood\u00a0CEO Vlad Tenev is betting that by rolling out a large enough portfolio of digital investment products, more consumers will be willing to pay a monthly subscription for its product suite.<\/p>\n
Subscribers to Robinhood Gold pay $5 a month or $50 a year for perks like 4% interest on uninvested cash, access to professional research, and no interest on the first $1,000 of margin borrowed.<\/p>\n
Now the company is\u00a0adding\u00a0wealth management features called Robinhood Strategies, which offers curated access to exchange-traded fund portfolios and mixes of handpicked stocks. The service, available to Gold Subscribers, carries a 0.25% annual management fee, capped at $250.<\/p>\n
Robinhood also said this week that with its new Robinhood Banking offering, Gold subscribers will get private banking services with tax advice and estate planning tools, perks like access to private jet travel, five-star hotels and tickets to Coachella, and 4% interest on savings accounts. Customers will also soon be able to get cash delivered to their doorstep, saving them a trip to the ATM, though few details were provided.<\/p>\n
Tenev told CNBC in an interview that Robinhood\u2019s subscription service could be similar to what users get from\u00a0Amazon\u00a0Prime or\u00a0Costco\u00a0membership, where their monthly fee feels justified by the quality and quantity of the perks, which keep them coming back.<\/p>\n
\u201cMy philosophy behind it is subscriptions are about loyalty,\u201d Tenev said. \u201cSo if you\u2019re a subscriber to something, then that service is sort of the first in mind when you think about trying something else from that category.\u201d<\/p>\n
Tenev said that in financial services, loyalty is particularly important because it\u2019s \u201cequivalent to wallet share.\u201d<\/p>\n
Tenev said the number of subscribers increased from about 1.5 million a year ago to 3.2 million today, adding that it\u2019s a \u201cnine-figure business,\u201d meaning at least $100 million in annual revenue.<\/p>\n
Robinhood grew in popularity among younger investors by making it easy to buy and hold fractional shares in companies using a simple mobile app, and then moving into crypto. Tenev said on Thursday that over the longer term, Robinhood wants to be \u201cthe place where you can buy, sell, trade, hold any financial asset, conduct any financial transaction.\u201d<\/p>\n
Robinhood shares are up 19% this year after almost tripling in 2024, when crypto prices soared.<\/p>\n<\/p>\n
Robinhood\u00a0CEO Vlad Tenev is betting that by rolling out a large enough portfolio of digital investment products, more consumers will be willing to pay a monthly subscription for its product suite. Subscribers to Robinhood Gold pay $5 a month or $50 a year for perks like 4% interest on uninvested cash, access to professional research, […]<\/p>\n","protected":false},"author":0,"featured_media":16354,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-16353","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/16353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=16353"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/16353\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/16354"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=16353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=16353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=16353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}