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Robinhood Markets (NASDAQ:HOOD) has seen a "little bit of a [customer] shift" away from active trading towards high-yield deposits, CEO Vlad Tenev said Friday at the Bernstein Strategic Decisions Conference, talking up the company's 4.65% yield and outsized FDIC deposit insurance offered to Gold members.
He said total deposits into Robinhood's (HOOD) Gold Sweep program has crossed $10B, "so it's kind of continued to increase even since our last earnings result." The increase comes as "banks are not passing along that much yield to their customers."
In April, HOOD said its net deposits were $1.4B, translating to a 22% annualized growth rate relative to the prior month's assets under custody. That growth was driven by the fact that HOOD offers more account types, Tenev said in the conference.
Net deposits can go into several areas, he noted, including core brokerage account, retirement and the Robinhood (HOOD) Gold program.
On the retirement front, the company is seeing its Roth Individual Retirement Accounts (IRAs) with a "quite attractive" 1% match "picking up with a lot of traction," as "confidence in the social safety net goes down."
Asked about what HOOD's vision is over the next three to five years, Tenev said: "we see a huge opportunity to help not just our current customers but people outside of the U.S. with all of their financial needs." He also signaled that there are some opportunities in M&A and web3/crypto over the coming years.