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Investing.com-- Robinhood Markets Inc (NASDAQ:HOOD), the brokerage firm renowned for commission-free trading, is set to introduce a suite of banking services aimed at retail investors with modest portfolios.
The new offering, branded as Robinhood Banking, will provide checking and savings accounts featuring a 4% annual percentage yield (APY) and Federal Deposit Insurance Corporation (FDIC) coverage up to $2.5 million through Coastal Community Bank, the company said in a statement.
The service includes an on-demand cash delivery feature, allowing customers to receive physical cash at their doorsteps, subject to geographic availability.
Initially, Robinhood Banking will be exclusive to Robinhood Gold subscribers, with plans to extend access to all customers in the future, the company said.
"With Robinhood Banking, we’re trying to solve many of the challenges presented by legacy banks,” said Deepak Rao, VP, Robinhood Money.
Shares of the company were 2.8% lower in after-hours trading.
In addition to banking services, the company has unveiled Robinhood Strategies, a platform offering personalized investment portfolios comprising exchange-traded funds (ETFs) and individual stocks.
Furthermore, Robinhood plans to launch Robinhood Cortex, an artificial intelligence-powered investment tool designed to provide real-time market analysis and insights, enhancing users’ investment decisions.