Webull Leverages Crisis To Spur Innovation, Financial Wellness

Last week, 3.8 million filed for unemployment benefits, bringing America’s total claims number to over 30 million. It's a result of the mass layoffs and business closures brought on by the coronavirus pandemic. 

Despite the global economic shutdown causing many businesses to shutter, some have cited past crises as the onset of lasting innovation and growth.

“During the worst financial crisis of our lifetime, innovation gained more traction than most investors had anticipated. Companies offering faster, cheaper, more cost-effective, and creative products/services gained a significant share,” said Catherine Wood, the CEO and CIO of ARK Investment Management.

“During the GFC, Software-as-a-Service and online retail were prime beneficiaries. As technology budgets were cut by 20-30% in and around 2008-2009, for example, during its worst quarter Salesforce.com Inc CRM chalked up a 20% increase in revenues. At the same time, while retail sales were falling, Amazon.com Inc AMZN delivered 14% growth during its worst quarter.”

One company poised to emerge from the present crisis stronger than before is Webull Financial, a mobile and desktop free trading platform.

Calm Before The Storm For Brokerages

Late last year, when most U.S.-based brokerages eliminated commissions, Webull excelled, opening thousands of accounts every day.

“It was October of 2019. It was an aha moment for us when we realized that giving all this advanced functionality was actually the real asset, not just being a free platform, no-fee broker,” said CEO Anthony Denier.

“It was the usability and functionality of the mobile app.”

Elegant platforms built for tomorrow’s user take precedence when all that other brokers have to offer is outdated software and no commissions, he said. 

Months after its launch, Webull began a marketing campaign outside of the traditional SEO and peer-to-peer social media channels.

“We put up some commercials on CNBC nationwide and it turned out that it brought a whole new customer base,” Denier said. “Older users flocked to us because they saw an opportunity to trade for free, and it wasn’t as simplified as Robinhood.”

The influx of new users from competing brokerages such as Fidelity, Charles Schwab Corporation SCHW, and TD Ameritrade Holding Corporation AMTD motivated the company to expand the functionality of its desktop platform, making it a holistic destination for research, education, analysis and trade execution.

“We’re calling it the thinkorswim killer because it’s not a slave to the mobile platform.”

Crisis Breeds Opportunity, Webull CEO Says 

Denier told Benzinga the present crisis levels the playing field, allowing smaller, tech-driven innovators to excel.

“We’re going to continue to roll out the best products possible,” he said. “We rolled out free options trading, and now we’re adding advanced functionality in the form of multi-leg strategies.”

The firm intends to also build out its education library and introduce FX futures products, unlocking the interest of novice and experienced users across the globe.

“FX is a very big product and we’re excited to be rolling that out,” he said. “Crypto trading and managed accounts are coming next.”

Webull recently received SEC approval to build out and launch an automated wealth manager, or robo-advisor.

“Just put in your parameters, set it, and forget it,” Denier said. 

Users will be able to adjust their risk profile, asset allocation and learn about the market in a centralized location.

Webull's CEO On Remaining Nimble

Despite negative news regarding the virus, Denier said fintech is emerging as a winner.

“Private equity was basically hidden in a closet,” he said.

“They’re coming out again and you’re seeing the raise Stash just did; you know, we have a lot of investors calling us looking to invest because they realize that while fintech is not only the future, it’s now. It’s going to be the way everyone does business going forward.”

In the near term, the company will leverage its pre-crisis contingency plans and continue day-to-day innovation remotely, the CEO said.

After the crisis, Denier said Webull will be the platform for the novice and professional trader or investor.

“We’ve had the luxury of being able to scale without any hiccups,” he said. “We were built for this moment.”

Photo by Bongkarn Thanyakij from Pexels.