Robinhood has withdrawn its banking charter application - Business Insider

A successful application would have allowed the fintech to move further into the banking space independently. The withdrawal was reportedly voluntary and Robinhood has no plans to resubmit its application, per a spokesperson cited by CNBC.

This is another setback for the fintech's banking push. Robinhood first attempted to enter the banking space by launching checking and savings accounts with a 3% interest rate in December last year, but it had to quickly rebrand its offering to a cash management service — which was in October this year — after the Securities Investor Protection Corp explained that the customers' money would not be protected by it.

However, we think withdrawing the banking license application isn't all bad news for Robinhood. Here's why: Getting a banking license in the US has always been an ambitious goal. So far, challenger bank Varo Money is the only fintech to preliminary approval for a National Bank Charter from the OCC, in September 2018, and it still has to complete all of the OCC's conditions for the restrictions to be lifted.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

5 key takeaways from 'The Innovator's Dilemma' by Clayton Christensen - Business Insider22 years after its publication, 'The Innovator's Dilemma' is still the best book on disruption ever written. Here are 5 key takeaways you may have missed on your first read. (by lizabeth_kiefer)
Source: BusinessInsider - 🏆 729. / 51 Read more »

Mars CEO explains how Gen Z is transforming the $35 billion company's workplace - Business InsiderMars CEO Grant Reid said that the work environment at Mars includes more flexibility, the ability to work from home, and open offices.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Trump faces two impeachment deadlines as inquiry shifts focus - Business InsiderTrump faces two deadlines Sunday as Democrats prepared to shift focus of the impeachment inquiry from fact-finding to the possible charges.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Next stock market crash: Strategist sees risk of December correction - Business InsiderA Wall Street expert who called the stock market's late-2018 meltdown warns another plunge could arrive in December — and shares his investing advice for 2020
Source: BusinessInsider - 🏆 729. / 51 Read more »

Union Square Ventures' Fred Wilson on media, direct listings, startups - Business InsiderFred Wilson, one of the world's most successful venture capitalists, reveals the top trends in startups right now, and why he's investing in an industry that's imploding
Source: BusinessInsider - 🏆 729. / 51 Read more »