Protocol, July 2, 2021, Robinhood’s Secret Weapon Could Also Be Its Undoing
Robinhood’s IPO filing confirmed what many analysts suspected: The online brokerage is growing fast. But the disclosures also underlined the precarious nature of that growth.
Now we know that Robinhood, which is going public under the ticker “HOOD,” makes a ton of money when customers make a ton of trades. And the startup is worried that that system could be upended by legislators and regulators. Ironically, the eye-popping financials it unveiled in its S-1 could fuel the calls for reform.
“We cannot stand by and allow algorithms to resurrect old biases in new packages, or introduce new forms of discrimination hidden in proprietary code.” —National Community Reinvestment Coalition CEO Jesse Van Tol, joining fintechs PayPal, Square and others in a call for more guidance on how AI should be used in lending.