Company Spotlight: Robinhood

By Andrew Siegelin

One of the fastest growing fintech startups is Robinhood, a for-profit organization providing an educational walkthrough of the stock market as well as providing a database for investments and portfolios.

Utilizing a “freemium” model, people who want to learn more about certain financial assets, how to manage their portfolio, or about the general nature of the stock market can find educational resources on Robinhood’s website free of charge. Robinhood’s articles are written based on frequently asked questions from customers.

A key factor in their business model is marketing. By presenting their product as a way for the rest of the world to learn about the “complexities” of the stock market, Robinhood targets the average adult who doesn’t work in finance. Robinhood continues to expand their market to include people from all backgrounds, professions, and locations. The company also wants to keep users connected not only with other users but also with the company itself. Through the “Blog” page, users can learn more about the company, and stay up to date on the company’s latest updates. The company offers basic training in all aspects of trading stocks, as well as educating users on key financial vocabulary. By appealing to such a large audience, Robinhood uses the concepts of basic education and simplicity in order to keep their reach reach, and with it their profits, growing.

Robinhood can also attract experienced investors through their newest installation, Robinhood Crypto. This platform allows investors to maintain and analyze their options and funds through one database. Robinhood hopes to provide services to to financial professionals as well as new traders. By providing new editions for trading and portfolio management, more educated investors can use the company to their advantage as well. By diversifying their market, Robinhood can capitalize on two types of stock market traders.

The most innovative aspect of Robinhood is how they actually teach their users. Through real world applications, the company allows users to understand the stock market as they develop their own portfolios. By showing users how to interpret the stock market as well as their funds as they actually set up their accounts, Robinhood wants their teaching to be applied immediately for each investor. This approach has been very effective for the company and has received great feedback from their users.

In sum, Robinhood seeks to capitalize on growing interest in investing in the stock market. They seek both to make the stock market and its idiosyncrasies more accessible to the average individual investor and optimize the trading experience for seasoned investors as well.

Sources:

  1. https://about.robinhood.com/
  2. https://crypto.robinhood.com/