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Robin Hood CEO tells AP that he wants to expand beyond trading | Work

New York (AP) — Robin Hood has already changed the way people trade stocks and who is doing it. Today, that perspective is on the rest of the financial industry.

Robin Hood market stocks were first traded on the Nasdaq on Thursday, following the company’s long-awaited first offer, which attracted a new generation of investors to the market and stopped the industry from charging transaction fees. Stocks fell 12% in early trading before making up for the loss. According to CEO Vladimir Tenev, an IPO is a milestone, but it’s not the climax.

In an interview with The Associated Press, Tenev said he wanted Robin Hood to be the only app people would use on their mobile phones for money. It covers everything from payroll deposits to bill payments to split payments with friends.

Tenef, who founded Stanford University graduates Baijubat and Robin Hood in 2013, also admits that his company has become synonymous with the trading boom of small and novice investors, good or bad. Said. These investors have the first chance to increase their wealth after years of lagging behind their stock-owning households, but they’re trading too risky with their newly discovered apps. It is also criticized for being there.

Earlier this year, they almost on their own sent GameStop and other “meme stock” groups to the heights of professional investors, called dangerously absurd. Mania has caused significant losses to some hedge funds, stopped trading stocks many times, and held congressional hearings asking who was injured. Robin Hood was also forced to temporarily ban customers from making GameStop transactions because he suddenly had to put more collateral into the clearinghouse that handles the transaction.

Critics say the company, based in Menlo Park, California, encourages unsophisticated investors to make dangerous bets by pretending to be a game. But Tenev said he wanted to encourage the app to profit from the stock market for everyone, not just the elite. This interview has been edited for clarity and length.

Q: This year, GameStop’s saga started with Robin Hood’s Rocky. Is an IPO a sign that the company is around the corner?

A: I think it’s a great milestone, and it’s really a celebration for individual investors. Private investors have undoubtedly made a comeback in the last few years, and Robin Hood is part of that story. I think there is much more we can do to serve individual investors.

Q: Your app is fun and easy to trade, but it’s been criticized by both Wall Street and regulators. Is the criticism justified?

A: I don’t think so. We accept that there is always something we can do better and make a lot of investments to make sure our customers are educated. However, in the end, the more access you have, the better. And the stock market in particular is a great source of wealth creation for so many people. It has been reserved for 1% for a very long time. That’s why we’re proud to provide access and make it easier for people to use.

Q: Why is Robin Hood a lightning rod with so many criticisms?

A: Well, I think Robin Hood has become synonymous with American retail investors and retail investors. It has its pros and cons. You hear “Robinhood Investor”, and it becomes a kind of new term for individual investors. So I think that’s a positive thing. It helps bring the brand to market. But whenever there is criticism of the industry, we represent it and must answer it to some extent.

Q: When you look at your customers, do you think they see it as entertainment?

A: Well, in general, I think it’s important for customers to enjoy themselves. If you don’t have fun and you don’t enjoy investing, you’ll have less to do. That’s why we want to make our products easier to use, but it’s also important to educate and inform people. That’s why we invest heavily to ensure product safety and provide all the educational tools our customers need to succeed.

Q: When GameStop was rocking Wall Street, people said it was the “Robin Hood Gang” to take over the market. Does the use of that term bother you?

A: Certainly if it is despisedly discussed or used because it is a very wide range of brushes. You are looking at many of these clients building portfolios, who are primarily buying and accumulating stocks. So I think a lot of people are doing something useful in the long run. So it’s a bit unfair for a lot of people to be drawn with a relatively small number of people.

Q: What do you personally think when people say that Robin Hood makes the stock market a casino, or more casinos than it would otherwise?

A: Looking at it, I think this is a big, big misunderstanding because the stock market is one of the biggest wealth creation tools. We encourage access to it and do not look down on those who can use it. So, in a way, I’ve heard that wealthy clients are entering the stock market, but it’s an investment. But when the rest of us have access to the stock market, it’s gambling. And I think rhetoric has to go.

Q: One for every $ 20 Robin Hood made earlier this year was from Dogecoin. How important are Bitcoin and other cryptocurrencies for long-term strategies?

A: It’s certainly an area of ​​interest to us. So, according to many, it’s the future of the financial industry in many ways. So we want to make sure we are there. And we serve customers who are interested in exploring this new asset class. So, arguably, cryptography has been very culturally relevant in the first six months of this year.

NS; What will Robin Hood look like in the future?

A: Over time, we want to be a single money app, the most trusted and culturally relevant money app in the world. So everything you spend your money on should be possible through Robin Hood.

Whenever you receive a direct deposit of salary, do it through Robin Hood. Your emergency funds, your bill payments, your daily spending, we want our customers to use us for that. And, of course, all types of investments, from more discretionary investments to long-term retirement savings.

Q: It may be worth more than $ 2 billion after an IPO. Is there a social cause you are thinking of defending?

A: I haven’t really started thinking about what to do after an IPO. I have been very focused on the company and the mission. But we will see. So I think Robin Hood’s mission itself is what I believe so strongly. The financial empowerment and inclusion of everyone is what we believe very strongly.

Q: So are you planning to buy a ticket to space? I heard that your favorite planet is Venus.

A: It’s not a very kind planet to visit, it turns out. I like all the planets. The earth is pretty good, so I’m glad I was here for the time being.

Robin Hood CEO tells AP that he wants to expand beyond trading | Work

Source link Robin Hood CEO tells AP that he wants to expand beyond trading | Work

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