Robinhood has introduced a new subscription plan that could enable users to enjoy benefits akin to those provided by Amazon Prime or Costco.
During an interview with CNBC, Vlad Tenev, Robinhood’s CEO, expressed that the company views the loyalty market as a significant growth opportunity.
This development could be pivotal for the crypto industry, as it suggests the addition of more services—including digital assets, wealth management, and tax guidance—within the company’s monthly subscription framework.
If the offering provides a collection of products that investors deem valuable, more individuals might be inclined to pay the subscription fee, according to the Robinhood CEO.
He mentioned that this is a model that Amazon has successfully mastered, which intrigues Robinhood. It could potentially reshape the loyalty landscape in the financial services sector, Tenev observed.
In Tenev’s view, loyalty within the financial services market holds significant importance, primarily because it correlates with wallet share.
“My thinking is that subscriptions revolve around loyalty. If you subscribe to something, that service is likely to be your first choice when considering similar options.”
Currently, Robinhood’s Gold subscription has a monthly fee of $5 or an annual cost of $50.
This plan allows subscribers to earn a 4% interest on their uninvested cash and provides access to professional research, among other benefits.
The company is now enhancing this offering with Robinhood Strategies, incorporating wealth management that includes exchange-traded funds and curated stock selections. Gold subscribers will incur a management fee of 0.25%, capped at $250.
Robinhood aspires for this approach to grant its users loyalty benefits comparable to those that engage Amazon Prime and Costco members. If customers believe the offerings are worthy of the monthly fee, they will likely continue to pay and return, he emphasized.