Robinhood has withdrawn its banking charter application - Business Insider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.

Ireland Ireland Latest News, Ireland Ireland Headlines

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

Holiday fulfillment may drive customer loyalty - Business Insider - Business InsiderRetailers that use omnichannel fulfillment options may be best positioned to successfully handle their e-commerce orders this holiday season.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Dispensed Business Insider weekly healthcare newsletter December 6 - Business InsiderDispensed: Hospital CIOs dish on the cloud, digital chiefs talk tech in healthcare, and how our editor picked his health plan
Source: BusinessInsider - 🏆 729. / 51 Read more »

Vodafone UK turns key operations over to digital - Business Insider - Business InsiderVodafone UK has reduced headcount in network operations centers thanks to the introduction of digital tools, like chatbots and automated networks.
Source: BusinessInsider - 🏆 729. / 51 Read more »

The Digital Health Ecosystem Report from Business Insider Intelligence - Business Insider[NEW REPORT] The second annual Digital Health Ecosystem from BIIntelligence is an in-depth examination of the players and tech trends reshaping the future of healthcare:
Source: BusinessInsider - 🏆 729. / 51 Read more »

UK regulators take a hard line on outages - Business Insider - Business InsiderMajor UK financial regulatory bodies have put out a shared policy summary aimed at preventing prolonged tech problems in the banking sector
Source: BusinessInsider - 🏆 729. / 51 Read more »

Zopa nabs deadline day funding to meet requirements for its banking license - Business InsiderZopa raised $183 million in last minute funding – a vital lifeline for Zopa in its efforts to expand beyond its core peer-to-peer business.
Source: BusinessInsider - 🏆 729. / 51 Read more »