WEBVTT - Robinhood's Innovative Credit Card

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<v Speaker 1>Earners.

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<v Speaker 2>What's up.

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<v Speaker 1>You ever walk into a small business and everything just

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<v Speaker 1>works like The checkout is fast, the receipts are digital,

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<v Speaker 1>tipping is a breeze, and you're out the door before

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<v Speaker 1>the line even builds. Odds are they're using Square. We

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<v Speaker 1>don't hesitate. Let's Square handle the back end so you

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<v Speaker 1>can keep pushing your vision forward. This episode is brought

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<v Speaker 1>to you by P and C Bank, a lot of

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<v Speaker 1>people think podcasts about work are boring, and sure they

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<v Speaker 1>definitely can be, but understanding of professional's routine shows us

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<v Speaker 1>how they achieve their success little by little, day after day.

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<v Speaker 1>It's like banking with P and C Bank. It might

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<v Speaker 1>seem boring to save, plan and make calculated decisions with

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<v Speaker 1>your bank, but keeping your money boring is what helps

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<v Speaker 1>you live or more happily fulfilled life. P and C

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<v Speaker 1>Bank Brilliantly Boring since eighteen sixty five. Brilliantly Boring since

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<v Speaker 1>eighteen sixty five is a service mark of the PNC

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<v Speaker 1>Financial Service Group, Inc. P and C Bank National Association

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<v Speaker 1>Member FDIIC.

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<v Speaker 2>Talk about your credit card. I know you said that

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<v Speaker 2>you have it. If you could show it that it'd

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<v Speaker 2>be cool too. But yeah, why was that important for

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<v Speaker 2>you guys to diversify your portfolio? Ad that? And what

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<v Speaker 2>makes it different from other products in the financial services space?

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<v Speaker 3>Okay, so here it is. It happens to be in

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<v Speaker 3>my wallet. Can you guys see that.

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<v Speaker 1>Nice fourteen care fourteen carrot with the logo at the top.

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<v Speaker 2>Uh?

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<v Speaker 3>Yeah, I think it's actually ten ten carrot if I'm

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<v Speaker 3>not mistaken. Yeah, it has it has to be. It

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<v Speaker 3>can't be that soft because you don't want it to

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<v Speaker 3>bend while you're while you're swiping it. Let's see why

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<v Speaker 3>is it important? I think that if you look in

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<v Speaker 3>the US, UH, the vast majority of spend for our

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<v Speaker 3>customers is credit card spend. So credit cards are a

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<v Speaker 3>tool for lending money, but they're also a tool for

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<v Speaker 3>for transacting and spending and buying things and paying bills.

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<v Speaker 3>And in the US, where UH sort of like E wallet,

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<v Speaker 3>adoption has not been as high, credit cards are still primary.

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<v Speaker 3>So there's somewhere around eight hundred million cards in circulation

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<v Speaker 3>in the US, hundreds of millions of people have them.

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<v Speaker 3>On average, they hold two to three cards per person,

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<v Speaker 3>so it's more mass market than even investing. More people

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<v Speaker 3>hold credit cards than individual brokerage accounts in the US,

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<v Speaker 3>And so if we wanted to serve customers in the

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<v Speaker 3>totality of their financial needs and we want to grow

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<v Speaker 3>wallet share with them, we need to have a solution

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<v Speaker 3>for their spend. And people tend to stay on credit

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<v Speaker 3>cards as well. Once you get your first one, you're

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<v Speaker 3>typically not going back to using debit for your transactions

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<v Speaker 3>because of the rewards being so compelling and the economics

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<v Speaker 3>and credit interchange being so high, it tends to be

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<v Speaker 3>a one way door where once you become a credit

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<v Speaker 3>card user, you tend to stay one. And so we

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<v Speaker 3>wanted to take the Robinhood recipe of industry leading value

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<v Speaker 3>and customer experience and build a credit card around that.

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<v Speaker 3>And to us, what that looks like is on the

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<v Speaker 3>economics front, three percent cash back across the board, which

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<v Speaker 3>is higher than any other card gives. We also wanted

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<v Speaker 3>to build an awesome digital app around your credit card experience,

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<v Speaker 3>and I think the team's done a really amazing job there.

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<v Speaker 3>The app is beautiful, it's delightful, it's like really easy

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<v Speaker 3>to use. I think that if you guys have a

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<v Speaker 3>chance to try it, it's rolling out right now, you'll

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<v Speaker 3>see what I mean. It's the craftsmanship of this app.

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<v Speaker 3>I don't think any other credit card product comes close.

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<v Speaker 3>And then the third thing the physical design. So this

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<v Speaker 3>is a solid of gold. It is minimal, you know,

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<v Speaker 3>nothing nothing on the nothing on the front, not even

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<v Speaker 3>the network logo, just the Robinhood logo and a little

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<v Speaker 3>stamp here that shows that it's it's gold. It has

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<v Speaker 3>the atomic number. There's no number on the back, so

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<v Speaker 3>from a security perspective, that's really good. You can you

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<v Speaker 3>know if you happen to lose the card, although if

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<v Speaker 3>you lose this one, you've got you've got bigger problems

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<v Speaker 3>than just a plastic card. Of course, you don't have

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<v Speaker 3>to change your number because it hasn't been compromised. So

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<v Speaker 3>we really paid attention to all the details and asked ourselves,

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<v Speaker 3>how can we make the best credit card product, and

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<v Speaker 3>how can we deliver a mass market credit card that

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<v Speaker 3>has the perks that you would only see given to

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<v Speaker 3>a high net worth credit card customer. And I think

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<v Speaker 3>we've managed to do that, and the reception has been strong.

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<v Speaker 3>Over a million people have signed up, actually over a

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<v Speaker 3>million people signed up in the first month after we

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<v Speaker 3>made the announcement. And now we just have to deliver

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<v Speaker 3>it to all those people in a reasonable timeframe, while

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<v Speaker 3>making sure that as we enter this new category, we

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<v Speaker 3>do it with we do it carefully and manage all

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<v Speaker 3>of the all the borrowing and and all of the

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<v Speaker 3>new things that you tend to see when when you

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<v Speaker 3>enter a new product category.

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<v Speaker 4>With the rise and acceptance of AI, have you, guys

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<v Speaker 4>considered or are you working on any algorithmic robots for

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<v Speaker 4>trading on the platform.

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<v Speaker 3>I think that the really interesting use cases for AI

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<v Speaker 3>tend to be things where maybe you have a human

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<v Speaker 3>that's providing a valuable service to you that you're already

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<v Speaker 3>paying for, or sort of like things that remove toil

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<v Speaker 3>that you would do yourself, but that you really don't

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<v Speaker 3>want to be doing, like filing your taxes or something. So,

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<v Speaker 3>you know, in the first category, you see things like

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<v Speaker 3>self driving vehicles, and there's a pretty clear market for that.

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<v Speaker 3>You know, you see customers doing ride sharing. They request

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<v Speaker 3>a ride, there's a driver, they pay for it, very

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<v Speaker 3>valuable service. So I think it makes a lot of

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<v Speaker 3>sense to me that AI would disrupt that space. Now,

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<v Speaker 3>when you think about financial services, I think there's several

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<v Speaker 3>areas that humans are providing service to customers that have

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<v Speaker 3>the potential to be disrupted or fundamentally rethought in the

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<v Speaker 3>next ten years. I think financial advice is clearly one

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<v Speaker 3>of them. You know, customers are paying a lot of

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<v Speaker 3>money for finance advice. It's something that only the wealthiest

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<v Speaker 3>customers can afford right now, and really really good advisors

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<v Speaker 3>tend to want to serve you if you have millions

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<v Speaker 3>of dollars but if you're just getting started, or if

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<v Speaker 3>you have hundreds of thousands of dollars or tens of thousands,

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<v Speaker 3>it's pretty tough going like you're not getting great experience,

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<v Speaker 3>not getting great service. So I think that can be

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<v Speaker 3>fundamentally transformed by artificial intelligence, and that's an interesting problem

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<v Speaker 3>that Robinhood can help solve for customers. The other thing

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<v Speaker 3>is customer service. Providing customer service on a large scale.

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<v Speaker 3>I think we'll be transformed by artificial intelligence, and particularly

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<v Speaker 3>the transactional elements of you know, I have this problem,

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<v Speaker 3>Help me interpret it, help me understand it, help me

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<v Speaker 3>solve it. I think AI is going to be very

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<v Speaker 3>very important there. I'm less bullish on the applications of

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<v Speaker 3>AI to self directed trading and in the active trading space.

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<v Speaker 3>I think there are applications kind of on the boundaries

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<v Speaker 3>there that help remove toil and things like that. But

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<v Speaker 3>I think people fundamentally enjoy doing that themselves, and so

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<v Speaker 3>I don't think you're going to see it being replaced

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<v Speaker 3>by robots anytime soon. But I could be wrong. I've

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<v Speaker 3>been wrong about other things in terms of Robinhood's role

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<v Speaker 3>in this, I mean, we've been early in AI since

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<v Speaker 3>before it was called AI. It was called machine learning

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<v Speaker 3>for a long time. Now if you say the words

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<v Speaker 3>machine learning, people think that you're very old school. But yeah,

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<v Speaker 3>generative AI, LMS. There's new technologies that have come in

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<v Speaker 3>that we're going to continue to incorporate. But from the

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<v Speaker 3>very beginning, I think we were very quick to invest

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<v Speaker 3>in this.

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<v Speaker 5>And illegal alien from Guatemala charged with raping a child

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<v Speaker 5>in Massachusetts. An MS thirteen gang member from Al Salvador

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<v Speaker 5>accused of murdering a Texas man of Venezuelan charged with

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<v Speaker 5>filming and selling child pornography in Michigan. These are just

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<v Speaker 5>some of the heinous migrant criminals caught because of President

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<v Speaker 5>Donald J. Trump's leadership. I'm Christy Noman, the United States

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<v Speaker 5>Secretary of Homeland Security. Under President Trump, attempted illegal border

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<v Speaker 5>crossings are at the lowest levels ever recorded, and over

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<v Speaker 5>one hundred thousand illegal aliens have been arrested. If you

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<v Speaker 5>are here illegally, your next you will be fined nearly

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<v Speaker 5>one thousand dollars a day, imprisoned, and deported. You will

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<v Speaker 5>never return. But if you register using our CBP home

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<v Speaker 5>app and leave now, you could be allowed to return

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<v Speaker 5>legally do what's right. Leave now. Under President Trump, America's laws,

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<v Speaker 5>border and families will be protected.

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<v Speaker 2>Sponsored by the United States Department of Homeland Security,