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Noticing something interesting going on in @Robinhood over the last month. On the landing screen for the Cash Management high-interest debit card product, for which Iâm on the huge waitlist, Iâve been moving up in the line by *big chunks every day* â as high as 50k spots/day. 1/7
As of a few months ago, it was maybe + or - 5 to 10 spots per day... 2/7
One explanation is theyâre letting people off the waitlist in big cohorts. However, this doesnât explain why my relative position in the list is changing so much: I went from the 33rd percentile of the line to the 20th percentile even as the total list only shrank by 24%. 3/7
I havenât referred anyone to the product, I havenât put more money in my account or bought more shares...my hunch is that Robinhood prioritizes user accounts that have assets, whether in stocks, crypto, or cash. 4/7
*So I believe this indicates is a slice of real-time churn, as users liquidate their accounts due to the COVID crisis and Robinhood de-prioritizes them in line, as they have no cash to put into a âcash managementâ product.* 5/7
Itâs hard to say the exact daily churn/users going "inactive" (as you have a sort of reverse leaky bucket situation), and if true, this is just those users that have signed up for the cash management product. 6/7
Robinhood supposedly had 10MM users as of December, so 250K of churn over a month isn't huge - but is not insignificant - and it's pretty crazy to see retail traders cash out in real time. 7/7 https://www.cnbc.com/2019/12/04/start-up-robinhood-tops-10-million-accounts-even-as-industry-follows-in-free-trading-footsteps.html
