Robinhood Launches Banking with AI and Tax Services

Robinhood is expanding its offerings by launching Robinhood Banking, targeting its Gold subscribers with premium banking services including 4% APY savings, cash delivery, and FDIC insurance up to $2.5 million through Coastal Community Bank. The service aims to replicate a private banking experience with features like estate planning, tax advice, and access to exclusive events. Complementing this, Robinhood Strategies provides wealth management with ETFs and individual stock investments for a 0.25% management fee. The company also introduces Robinhood Cortex, an AI tool offering real-time market analysis. This move reflects Robinhood's strategy to fill the gap between expensive traditional advisors and generic robo-advisors, enhancing its appeal to retail investors seeking comprehensive financial services. Robinhood's banking services are expected to roll out later this year, as it continues to challenge traditional banks with innovative solutions.