Robinhood to Launch Wealth Management & Private Banking Services

Robinhood Markets Inc. HOOD is transforming its business model by launching an integrated suite of financial services intended to attract retail investors looking for private banking and wealth management solutions. This was reported first by Reuters.Details of Robinhood’s Planned LaunchOn the private banking side, Robinhood is planning a launch rate of 4% yield (APY) for savings accounts. The company will also launch a private banking product for its “Gold” subscribers later this year, with real estate planning and tax advice.The new offerings will initially target Robinhood Gold subscribers on early access requests, with plans to extend access to all clients. A unique feature includes on-demand cash delivery, allowing customers to receive cash directly at their doorsteps, subject to geographic limitations. Clients will also be able to order checkbooks, pay bills and send international money transfers for free.In addition, Robinhood is also launching a personalized wealth management products under the brand “Robinhood Strategies,” with a 0.25% annual fee and capped at $250 for its premium 'Gold' subscribers.The offering will enable consumers to invest in single stocks and exchange-traded funds while reducing taxable gains. HOOD will also enhance its wealth management services with an artificial intelligence offering -- Robinhood Cortex. It will help investors to optimize their portfolios with analysis and insights.Steph Guild, senior director, Investment Strategy, Robinhood Financial, emphasized the company’s strategic positioning. “We’re addressing a critical gap in wealth management,” Guild said, positioning the service between expensive traditional advisors and generic robo-advisors.HOOD’s Recent DevelopmentsRobinhood continues to diversify its product base to acquire clients and gain market share. In February 2025, the company completed the $300-million acquisition of TradePMR, a custodial and portfolio management platform specializing in services for registered investment advisers (RIAs). The acquisition positions Robinhood within the rapidly growing $7-trillion RIA industry. RIAs deliver fiduciary financial advice tailored to clients’ unique goals and circumstances — a service increasingly sought after by Robinhood’s maturing customer base.In January 2025, the company launched Futures (a nine-figure revenue business, according to the company). In December 2024, it introduced the Tax Lots feature for its investors.Thus, rapid product innovations through vertical integration will likely expand the company’s client base, enabling greater operating leverage and paving the way for sustained profitability.Other Finance Stocks' Efforts to Boost BusinessLast year, Barclays PLC BCS announced its intention to accelerate growth in its Private Banking and Wealth Management segment by increasing its headcount and hiring up to 100 advisers. BCS aims to grow its wealth management capabilities to offset declining revenues from lending as interest rates come down. Other global banks, such as HSBC Holdings PLC HSBC, have also taken this route. This September, The Guardian reported that HSBC aims to strengthen the U.K. arm of its wealth and private banking operations by recruiting more relationship managers.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Barclays PLC (BCS): Free Stock Analysis Report HSBC Holdings plc (HSBC): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks