Robinhood Markets Inc HOOD CEO Vladimir (Vlad) Tenev joined CNBC’s Power Lunch on Friday to discuss the company amid a downturn of retail investors.
Tenev noted that while retail investing was down across the board from the COVID-19 bull-market rally, Robinhood remained in the early stages and was ready to capitalize on a shift in the financial services industry.
Tenev pointed to some of Robinhood’s more recent products and offerings as examples of how the company would be able to replace traditional banks for younger customers. The app already offered users a competitive 4.9% APY rate on uninvested cash, beating the savings account rate at U.S. banks.
“There’s a gigantic financial services industry that’s waiting to be disrupted beyond just investing and trading,” Tenev said on his CNBC appearance. “You’re seeing that with our entry into products like retirement where we’re offering a 1% match… along with 4.9% APY on uninvested cash. These products have allowed us to adapt to a new environment and give customers incredible value in a high-rate environment.”
Tenev noted Robinhood was still in the early stages as a company. Right now, Robinhood is only available in the U.S. and eventually, it could be accessed worldwide.
Robinhood grew in popularity during the COVID-19 pandemic when hundreds of thousands of new retail investors joined the market. Robinhood is known for its easy-to-use interface and for offering access to advanced features for individual investors.
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