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Robinhood's Innovative Credit Card · Earn Your Leisure

• 0:01
  Speaker 1: Earners.
• 0:01
  Speaker 2: What's up.
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  Speaker 1: don't hesitate. Let's Square handle the back end so you
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  Speaker 1: can keep pushing your vision forward. This episode is brought
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  Speaker 1: to you by P and C Bank, a lot of
• 1:12
  Speaker 1: people think podcasts about work are boring, and sure they
• 1:16
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  Speaker 1: your bank, but keeping your money boring is what helps
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  Speaker 1: Bank Brilliantly Boring since eighteen sixty five. Brilliantly Boring since
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  Speaker 1: eighteen sixty five is a service mark of the PNC
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  Speaker 1: Financial Service Group, Inc. P and C Bank National Association
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  Speaker 1: Member FDIIC.
• 1:51
  Speaker 2: Talk about your credit card. I know you said that
• 1:53
  Speaker 2: you have it. If you could show it that it'd
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  Speaker 2: be cool too. But yeah, why was that important for
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  Speaker 2: you guys to diversify your portfolio? Ad that? And what
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  Speaker 2: makes it different from other products in the financial services space?
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  Speaker 3: Okay, so here it is. It happens to be in
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  Speaker 3: my wallet. Can you guys see that.
• 2:10
  Speaker 1: Nice fourteen care fourteen carrot with the logo at the top.
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  Speaker 2: Uh?
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  Speaker 3: Yeah, I think it's actually ten ten carrot if I'm
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  Speaker 3: not mistaken. Yeah, it has it has to be. It
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  Speaker 3: can't be that soft because you don't want it to
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  Speaker 3: bend while you're while you're swiping it. Let's see why
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  Speaker 3: is it important? I think that if you look in
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  Speaker 3: the US, UH, the vast majority of spend for our
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  Speaker 3: customers is credit card spend. So credit cards are a
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  Speaker 3: tool for lending money, but they're also a tool for
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  Speaker 3: for transacting and spending and buying things and paying bills.
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  Speaker 3: And in the US, where UH sort of like E wallet,
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  Speaker 3: adoption has not been as high, credit cards are still primary.
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  Speaker 3: So there's somewhere around eight hundred million cards in circulation
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  Speaker 3: in the US, hundreds of millions of people have them.
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  Speaker 3: On average, they hold two to three cards per person,
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  Speaker 3: so it's more mass market than even investing. More people
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  Speaker 3: hold credit cards than individual brokerage accounts in the US,
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  Speaker 3: And so if we wanted to serve customers in the
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  Speaker 3: totality of their financial needs and we want to grow
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  Speaker 3: wallet share with them, we need to have a solution
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  Speaker 3: for their spend. And people tend to stay on credit
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  Speaker 3: cards as well. Once you get your first one, you're
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  Speaker 3: typically not going back to using debit for your transactions
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  Speaker 3: because of the rewards being so compelling and the economics
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  Speaker 3: and credit interchange being so high, it tends to be
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  Speaker 3: a one way door where once you become a credit
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  Speaker 3: card user, you tend to stay one. And so we
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  Speaker 3: wanted to take the Robinhood recipe of industry leading value
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  Speaker 3: and customer experience and build a credit card around that.
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  Speaker 3: And to us, what that looks like is on the
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  Speaker 3: economics front, three percent cash back across the board, which
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  Speaker 3: is higher than any other card gives. We also wanted
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  Speaker 3: to build an awesome digital app around your credit card experience,
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  Speaker 3: and I think the team's done a really amazing job there.
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  Speaker 3: The app is beautiful, it's delightful, it's like really easy
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  Speaker 3: to use. I think that if you guys have a
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  Speaker 3: chance to try it, it's rolling out right now, you'll
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  Speaker 3: see what I mean. It's the craftsmanship of this app.
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  Speaker 3: I don't think any other credit card product comes close.
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  Speaker 3: And then the third thing the physical design. So this
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  Speaker 3: is a solid of gold. It is minimal, you know,
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  Speaker 3: nothing nothing on the nothing on the front, not even
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  Speaker 3: the network logo, just the Robinhood logo and a little
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  Speaker 3: stamp here that shows that it's it's gold. It has
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  Speaker 3: the atomic number. There's no number on the back, so
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  Speaker 3: from a security perspective, that's really good. You can you
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  Speaker 3: know if you happen to lose the card, although if
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  Speaker 3: you lose this one, you've got you've got bigger problems
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  Speaker 3: than just a plastic card. Of course, you don't have
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  Speaker 3: to change your number because it hasn't been compromised. So
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  Speaker 3: we really paid attention to all the details and asked ourselves,
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  Speaker 3: how can we make the best credit card product, and
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  Speaker 3: how can we deliver a mass market credit card that
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  Speaker 3: has the perks that you would only see given to
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  Speaker 3: a high net worth credit card customer. And I think
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  Speaker 3: we've managed to do that, and the reception has been strong.
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  Speaker 3: Over a million people have signed up, actually over a
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  Speaker 3: million people signed up in the first month after we
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  Speaker 3: made the announcement. And now we just have to deliver
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  Speaker 3: it to all those people in a reasonable timeframe, while
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  Speaker 3: making sure that as we enter this new category, we
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  Speaker 3: do it with we do it carefully and manage all
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  Speaker 3: of the all the borrowing and and all of the
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  Speaker 3: new things that you tend to see when when you
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  Speaker 3: enter a new product category.
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  Speaker 4: With the rise and acceptance of AI, have you, guys
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  Speaker 4: considered or are you working on any algorithmic robots for
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  Speaker 4: trading on the platform.
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  Speaker 3: I think that the really interesting use cases for AI
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  Speaker 3: tend to be things where maybe you have a human
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  Speaker 3: that's providing a valuable service to you that you're already
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  Speaker 3: paying for, or sort of like things that remove toil
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  Speaker 3: that you would do yourself, but that you really don't
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  Speaker 3: want to be doing, like filing your taxes or something. So,
• 7:12
  Speaker 3: you know, in the first category, you see things like
• 7:14
  Speaker 3: self driving vehicles, and there's a pretty clear market for that.
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  Speaker 3: You know, you see customers doing ride sharing. They request
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  Speaker 3: a ride, there's a driver, they pay for it, very
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  Speaker 3: valuable service. So I think it makes a lot of
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  Speaker 3: sense to me that AI would disrupt that space. Now,
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  Speaker 3: when you think about financial services, I think there's several
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  Speaker 3: areas that humans are providing service to customers that have
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  Speaker 3: the potential to be disrupted or fundamentally rethought in the
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  Speaker 3: next ten years. I think financial advice is clearly one
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  Speaker 3: of them. You know, customers are paying a lot of
• 7:59
  Speaker 3: money for finance advice. It's something that only the wealthiest
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  Speaker 3: customers can afford right now, and really really good advisors
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  Speaker 3: tend to want to serve you if you have millions
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  Speaker 3: of dollars but if you're just getting started, or if
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  Speaker 3: you have hundreds of thousands of dollars or tens of thousands,
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  Speaker 3: it's pretty tough going like you're not getting great experience,
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  Speaker 3: not getting great service. So I think that can be
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  Speaker 3: fundamentally transformed by artificial intelligence, and that's an interesting problem
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  Speaker 3: that Robinhood can help solve for customers. The other thing
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  Speaker 3: is customer service. Providing customer service on a large scale.
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  Speaker 3: I think we'll be transformed by artificial intelligence, and particularly
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  Speaker 3: the transactional elements of you know, I have this problem,
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  Speaker 3: Help me interpret it, help me understand it, help me
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  Speaker 3: solve it. I think AI is going to be very
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  Speaker 3: very important there. I'm less bullish on the applications of
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  Speaker 3: AI to self directed trading and in the active trading space.
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  Speaker 3: I think there are applications kind of on the boundaries
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  Speaker 3: there that help remove toil and things like that. But
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  Speaker 3: I think people fundamentally enjoy doing that themselves, and so
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  Speaker 3: I don't think you're going to see it being replaced
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  Speaker 3: by robots anytime soon. But I could be wrong. I've
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  Speaker 3: been wrong about other things in terms of Robinhood's role
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  Speaker 3: in this, I mean, we've been early in AI since
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  Speaker 3: before it was called AI. It was called machine learning
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  Speaker 3: for a long time. Now if you say the words
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  Speaker 3: machine learning, people think that you're very old school. But yeah,
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  Speaker 3: generative AI, LMS. There's new technologies that have come in
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  Speaker 3: that we're going to continue to incorporate. But from the
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  Speaker 3: very beginning, I think we were very quick to invest
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  Speaker 3: in this.
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