Robinhood has had an about-turn on its plans to become a bank.
Valued at a staggering $7.6 billion, Robinhood ushered in a new era shaking up the status quo with commission-free trading in 2013.
Several young companies, including Jack Dorsey’s Square and mobile-only banking startup Varo Money, were relying on a special bank charter that gave them a fast-track to operate as banks.
Robinhood will continue to focus on increasing participation in the financial system and challenging the industry to better serve everyone We appreciate the efforts and collaboration of all the parties we worked with throughout this process.
Robinhood mismanaged plans to launch a checking and savings account with a 3% interest rate.
While the application withdrawal shines a light on the struggles of fintech to disrupt incumbent banks, it’s unlikely to stop Robinhood in its tracks.