Robinhood's Early Private Banking Rollout Triggers Some FOMO As CEO Declares It's 'No Longer Reserved For The Ultra-Wealthy'

• In response to a post on X that mentioned the possible wider rollout of Robinhood Banking, Tenev said, “(private banking) is no longer reserved for the ultra wealthy.”
• According to a report by The Wall Street Journal, customers can request cash deliveries for a $6.99 fee, or $2.99 if they hold over $100,000 in assets across their Robinhood accounts.
• The company began offering Robinhood Banking to external customers in late September.

Robinhood Markets (HOOD) was in the spotlight after several online users expressed dissatisfaction over not receiving an invite to its private banking offering amid CEO Vlad Tenev’s push to expand the company’s offerings.

“Seeing all these people get their $HOOD banking invite! Still waiting on mine,” one user wrote on X, as reactions poured in from others who said they had already received invitations to join Robinhood Banking.

“I haven’t seen anything,” said another, tagging Tenev.

Some users were more frustrated. “Haven’t seen the credit card or the banking. I’m moving to SoFi next week if I don’t get access. Not sure why they restrict access to certain people,” one account posted.

What Did Tenev Say?

In response to a post on X that mentioned the possible wider rollout of Robinhood Banking, Tenev said, “(private banking) is no longer reserved for the ultra wealthy.” He also said that the company is “iterating and learning” after a user asked him to drop the direct deposit requirement for self-employed people.

Robinhood is diversifying its business beyond its stock and cryptocurrency trading platform. Tenev had told Stocktwits earlier this year that the company aims to become a consumer-focused bank by offering luxury financial services at an affordable price to subscribers of its Gold services, which were launched last year.

When Did Robinhood Private Banking Start Rolling Out?

The company began offering Robinhood Banking to external customers in late September. In collaboration with the Coastal Community Bank, a member of the Federal Deposit Insurance Corporation.

“We've already got customers trying it, including cash delivery available in some markets, and early results are really good,” Tenev said in a conference call with analysts earlier this month. Doorstep cash delivery is one of the company’s core offerings.

According to a report by The Wall Street Journal, customers can request cash deliveries for a $6.99 fee, or $2.99 if they hold over $100,000 in assets across their Robinhood accounts. The service is already live in New York and will expand to San Francisco, Philadelphia, Washington, D.C., and other major U.S. cities in the coming months.

Retail sentiment on Stocktwits about Robinhood was in the ‘neutral’ territory at the time of writing.

Some retail traders were optimistic about the stock after Nvidia’s robust revenue outlook, which lifted the broader market sentiment.

Despite recent weakness in cryptocurrency markets, Robinhood stock has more than tripled this year on strong revenue growth and its inclusion in the S&P 500 index.

Also See: Axalta Coating Stock In Spotlight After Artisan Partners Opposes AkzoNobel Deal — What Are Its Past Campaigns?

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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