Robinhood, an investment platform offering commission-free trading of stocks, ETFs, cryptocurrency, and options, has announced the acquisition of Artificial Intelligence-powered investment research platform Pluto Capital, to enhance users’ experience.
With top companies racing to integrate AI into their products, Robinhood joins the growing list of companies offering AI-powered tools to their customers, which will provide investors with a new era of intelligent data-driven investment.
Robinhood’s acquisition of Pluto aligns with its mission to democratize finance for all by making sophisticated financial planning tools accessible to a broader audience. Pluto Capital, known for its robust AI algorithms, offers users detailed insights into market trends and personalized investment strategies.
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Speaking on the acquisition of Pluto, Mayank Agarwal, VP of Engineering at Robinhood said,
“We are thrilled to welcome Pluto and Jacob Sansbury to Robinhood. They have built an impressive platform that is highly regarded in the financial services industry. Importantly, their expertise in artificial intelligence coupled with a mission-aligned passion to democratize finance will complement our team’s effort to bring Al-powered tools to our customers”.
Also commenting, Jacob Sansbury, CEO of Pluto said,
“Robinhood is the ideal destination to build products that democratize access to financial services like wealth management and financial planning through state-of-the-art Al. I look forward to innovating at the company which has inspired me and so many others”.
With the integration of the AI-powered investment research firm in Robinhood, investors have unique access to the following features;
• Enhanced Data Analysis: Pluto’s advanced data analytics capabilities can process and interpret market data more efficiently by providing state-of-the-art large language models (LLMs) with access to real-time personal and global financial data. This means quicker identification of trends and opportunities, providing investors with a competitive edge.
• Personalized Investment Strategies: Pluto’s algorithms tailor investment strategies to individual customer profiles. By analyzing factors such as risk tolerance, investment goals, and historical behavior, the platform offers highly customized recommendations.
• Real-Time Insights and Portfolio Optimization: investors receive real-time updates and insights, enabling informed decisions swiftly and confidently. With Al-driven analysis, customer portfolios can be continually optimized for better outcomes, balancing growth and risk according to individual preferences.
Recall that last year November, CNBC reported that Robinhood experienced a 14% drop in revenue, after reporting big declines in trading volume and revenue. Crypto trading on the platform dropped 55% year over year. Options trading was unchanged. That translated to an overall decline of 11% in its transaction-based revenue.
However, it is worth noting that Robinhood has seen a surge in trading volumes on its platform, tied to the recent spikes in meme stocks and various cryptocurrencies. Data from Apptopia showed a 65% surge in daily active users for Robinhood in March compared to a year earlier.
Notably, the addition of Pluto Capital’s technology will empower users with more tailored investment recommendations and advanced financial planning tools, further solidifying Robinhood’s position as a leader in the fintech industry. This deal is intended to improve Robinhood’s investment and analysis offerings to its clientele, potentially boosting usage and total assets under management.