Robinhood no longer pursuing bank charter application

Stock-trading company Robinhood has reportedly stopped its bank charter application with the US Office of the Comptroller of the Currency.

This retraction has come voluntarily according to CNBC which cites a spokesperson.

Robinhood stated that it is still looking to continue deepening its interactions with the financial system.

The FinTech gives consumers access to invest in US stocks and ETFs without commission fees. The app also educates investors on the stock market, with personalized feeds to keep them updated with their favourite companies.

It has been a strong year for the company which recently closed a $323m Series E round which upped its valuation to $7.6bn. This is a sizeable jump in just a year. The FinTech had closed its former funding round the previous year on $350m at a valuation of $5.6bn. In 2017, Robinhood had a valuation of $1.7bn.

The company is keen on expanding its operations. Earlier this month, it launched its waiting list for the UK version of its app which is pegged for a 2020 launch.

Although, not everything has been plain sailing. The company was found to have been storing some of its user data in plaintext on internal systems, exposing this sensitive information to a matter of risks.

Then a scandal earlier in the year saw a glitch in its system which could be exploited to enable traders access to unlimited funds.

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