Fintech Apps See Massive User Growth As Saving Replaces Spending
Savings and investing apps like Robinhood and M1 Finance experience a huge surge in new accounts as consumers shift away from spending during the economic downturn.
Financial technology platforms focused on saving and investing experience a massive surge in user demand as consumers change their financial habits during the economic downturn. Instead of spending money, people hunt for stock market bargains or look for secure places to squirrel away their capital, driving up downloads and account creations for non-traditional financial apps.
Robinhood leads this trend with revenue that reaches real scale, prompting the company to pursue new capital at a flat valuation despite recent downtime controversies. The investing app sees huge interest from users who want to take advantage of market dips, proving that speculative trading platforms remain highly attractive even during global financial slides.
Smaller startups like M1 Finance also show striking growth metrics during this turbulent period. The Chicago-based service pulls in 119,000 new brokerage accounts in the first quarter, which represents a highly impressive fraction of the 609,000 new accounts reported by the massive traditional brokerage Charles Schwab.