Robinhood Expands Into Private Banking With AI Wealth Tools and Luxury Benefits
Robinhood is expanding into private banking and AI-powered wealth management, offering luxury benefits like tickets to the Met Gala and cash delivered to your doorstep. The new services, announced in March 2025, aim to make high-end financial tools affordable for everyday users.
Robinhood Banking: Premium Services for Everyone
Robinhood Banking is a new private banking product for Gold subscribers, costing $5 a month or $50 a year. It includes checking and savings accounts with a 4% annual interest rate on savings – nine times higher than the national average. Users also get up to $2.5 million in FDIC insurance through partner Coastal Community Bank.
One standout feature is the ability to order physical cash deliveries to your home, skipping ATMs. This service is available in select areas and is part of Robinhood’s plan to offer “luxury benefits” like tickets to events such as the Oscars, Formula 1 races, and private jet travel options. The banking app will also provide estate planning tools, tax advice, and international money transfers in over 100 currencies.
AI Wealth Tools: Real-Time Market Help
Robinhood Cortex, an AI investment tool launching later in 2025, will give users real-time market updates and insights. For example, it can explain why a stock’s price is rising or falling and suggest trading strategies. The AI will send written or audio updates directly to the app, helping users make smarter decisions without needing a financial advisor.
Cortex also includes a “Trade Builder” feature. If you think a stock will go up, the AI scans the market for options trades that match your prediction. While it doesn’t place trades automatically, it simplifies complex investing ideas for beginners.
Wealth Management for Small Investors
Robinhood Strategies, a wealth management service, starts at just $50 (or $0.25 per item for Gold members), users get professionally managed portfolios mixing ETFs and individual stocks. Investors with $500 or more can customize their portfolios based on risk tolerance or goals, like saving for retirement.
The service includes tax-saving strategies, such as selling losing stocks to offset gains and reduce taxes. Portfolios are actively adjusted to take advantage of market trends, like investing in Chinese tech stocks or European equities during upswings.
Why Robinhood is Targeting Everyday Users
Robinhood’s goal is to “democratize” finance by offering services usually reserved for the ultra-rich. For example, private banking perks like estate planning and luxury event access are now available to Gold subscribers. Deepak Rao, a Robinhood executive, said, “We’re not going after someone who has $10 million. We’re going after everybody else”.
The company’s shares have risen 29% in 2025, partly due to excitement around these new features. By making wealth management and banking affordable, Robinhood hopes to attract millions of users who feel ignored by traditional banks.
Challenges Ahead
Robinhood still relies on Coastal Community Bank for its banking services because it does not have its own banking license. Getting a license would let Robinhood cut costs and offer more products, but the company withdrew its application in 2019. For now, the partnership limits how quickly Robinhood can innovate.
Despite this, Robinhood Banking will launch fully in late 2025. The app will combine credit cards, checking and savings in one place, along with tools to track net worth across all accounts.
What This Means for the Future
Robinhood’s expansion challenges big banks like Morgan Stanley and Charles Schwab by offering similar services at lower prices. With AI tools and luxury perks, the company is betting that younger investors will prefer its tech-friendly approach over traditional firms.
However, regulations remain unclear and the SEC could still scrutinize Robinhood’s new products. For now, the company’s focus is clear: make finance simpler, cheaper and more exciting for everyone.
FAQs
Why is Robinhood expanding into private banking?
Robinhood wants to offer services like estate planning and high-yield savings to everyday users, not just the wealthy. The goal is to make premium banking affordable.
What are the “luxury benefits” included with Robinhood Banking?
Gold subscribers get perks like tickets to the Met Gala, Oscars, and F1 races, plus cash delivery and private travel options.
How does Robinhood’s AI tool help investors?
Robinhood Cortex provides real-time market updates, explains stock moves, and suggests trading strategies through the app.
