After a backlash around the marketing of its newest product, Robinhood Financial LLC has rebranded the service it had previously billed as Robinhood Checking & Savings.
Robinhood is now calling it a “Cash management” service.
“We’re excited and humbled by the response to yesterday’s announcement of Robinhood’s cash management program launching in 2019,” founders Baiju Bhatt and Vlad Tenev wrote in a statement.
Robinhood didn’t immediately respond to requests comment.
Robinhood achieved a $5.6 billion valuation, thanks to a no-fee stock trading app popular with millennials.
Although the practice is common in the industry, critics said Robinhood wasn’t forthcoming about the practice.
Robinhood said its service wouldn’t be insured by the FDIC but would be protected by the Securities Investor Protection Corp. However, the SIPC said Robinhood hadn’t contacted the organization before the introduction.