FIS, Fiserv or Infosys will be tapped to provide the processing software for Robinhood’s upcoming mobile bank if it receives approval from the Office of the Comptroller of the Currency.
Last week Robinhood, the company behind the free mobile trading app, filed an application to open an online bank that would be FDIC insured and offer high rates on savings and low rates on credit cards. Robinhood is looking to expand beyond the brokerage business and launch a deposit account with an interest rate higher than what’s on the market today. There will be no fees attached to the account.
According to a report in BankingTech, Robinhood said in its application for a banking charter that its core processing technology will be handled by either FIS, Fiserv or Infosys of India.
Marcus, the online lending unit of Goldman Sachs, uses Infosys for its core banking platform, the report noted. Robinhood will combine the core processing platform with its consumer-facing platform to create mobile and web-based banking products. “Robinhood currently uses innovative technologies to deliver brokerage services to U.S. retail consumers. It proposes to leverage those same and other innovative technologies to offer banking services in a safe and sound manner to U.S. retail consumers,” it says in its application to the OCC, according to the report.
This is Robinhood’s second attempt to enter the banking market after missteps caused the company to retreat late last year.
After garnering a lot of attention for launching a checking and savings product with 3 percent interest, it was forced to pull the offer days later. Robinhood ran into trouble with regulators and was forced to remove all material on the product from its website.
Earlier this year Robinhood did get the green light to trade seven digital currencies from New York State, which also signed off on a money transmission license for the company.