Robinhood, a Menlo Park, California-based financial services platform, as per recent reports this week, is on an active lookout for a core processing software for its banking services –once they get an authorized go-ahead from the Office of the Comptroller of the Currency (OCC). In its statement, Robinhood has cleared that the core processing tech will either come from the two US tech giants, FIS or Fiserv, or from the Indian multinational corporation –Infosys, which already is in deep ties with another digital banking start-up, Marcus (a Goldman Sachs initiative announced in 2016), providing them its Finacle core banking platform.
Earlier this year, the Menlo Park-based Robinhood has applied for a national banking charter hoping to launch a consumer-focused bank in the US.
“Robinhood currently uses innovative technologies to deliver brokerage services to US retail consumers. It proposes to leverage those same and other innovative technologies to offer banking services in a safe and sound manner to US retail consumers,” it explains itself in its banking charter application to the OCC.
After careful consideration of its choices, Robinhood plans to combine the banking & IT services from the selected core processing vendor with the firm’s pre-existing customer interface platform to deliver banking products and services via a smartphone-based user application or through the online mode, to its customers.
In its statement, Robinhood says it “has significant experience building and maintaining financial services information technology platforms in highly-regulated environments”. For instance, in October 2018, it had become “the first brokerage firm since Vanguard (in 2008) to build its own securities and options clearing system from scratch. This required close coordination with, and approval from, the Financial Industry Regulatory Authority, the Depository Trust & Clearing Corporation, and the Options Clearing Corporation.”