Fintech

What it’s like to work at Robinhood and who they hire, from CEO Vlad Tenev

Published

8 months ago

31 May, 2024

What it's like to work at Robinhood and who they hire, from CEO Vlad Tenev

Robinhood is one of the most recognizable names in fintech, but how do you find work there and what is it really like? Robinhood founder and CEO Vlad Tenev recently appeared on a podcasts with venture capitalist Logan Bartlett where he discussed how the company approaches hiring and how much autonomy Robinhood employees have.

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How to get a job at Robinhood

Robinhood likes to hire two types of people. Tenev said these are “people who are at the beginning of their careers” with “higher potential” and “people with high mathematical talent.”

Tenev said Robinhood products require “a lot of engineering work” to perfect, but Coding experience is not (always) essential. “In some cases, even if you don’t know how to code Pythonwe will give you a chance,” provided you have demonstrated your competence elsewhere.

Robinhood also has something for Artificial intelligence talent. Tenev said fintech has been hiring AI employees “since it was called machine learning” and that “Robinhood will be the leader in AI in financial services.” What is he using all the AI for? “Taking a lot of the transactional relationship material and completely automating it.”

Tenev said Robinhood has high standards for hiring. He also said there have been some problems with people hired in the past. A few years ago, “a lot of people came to Robinhood because they thought it would look good on their resume.” In 2022, when Robinhood’s situation was more difficult, “a lot of those people were unhappy.” Tenev says that time was “heartbreaking,” but that people who aren’t hired in fair weather can be better. “Some of the people who joined back then were really incredibly good.”

What are the best jobs at Robinhood?

Tenev also provided some insights into Revolut’s general manager (GM) roles. These are leadership roles specific to product areas, but Tenev says they are much more than just product managers (PM). GMs “decentralize accountability and responsibility,” focusing more on profit and loss than traditional PMs. Tenev says general managers “live and breathe the product” and “feel a ton of pressure” to see it succeed.

There doesn’t appear to be a specific profile for Robinhood GMs. Crypto GM Johann Kerbrat had an engineering background with Uber and AirBnB. Futures managing director JB Mackenzie previously worked in electronic trading for MF Global and was most recently a managing director at Toronto Dominion. Rich Sommers, meanwhile, has spent much of his career as a lab technician.

Robinhood also has core product and marketing teams, and Tenev says there can often be “conflicts and tensions between the platform teams and the GMs.” One problem is that GMs “want to move fast and be independent,” without always ensuring consistency with the Robinhood product suite. Tenev says the benefit of this is that these topics are “conscious conflicts that overall improve the company” when resolved.

Why did Robinhood stop being remote?

Robinhood is also different from most fintechs because it has firm beliefs anti-remote work. Bartlett said on the podcast that he asked a Robinhood employee if he was in the office every day and they, without irony, responded, “no, only from Monday to Friday.” Robinhood once advertised itself as a remote company, but Tenev said he knew he “made a terrible mistake” the moment he announced it.

There are still a small number of remote jobs available at Robinhood, and Tenev says he hasn’t asked remote workers miles away from Robinhood offices enter if they already worked there. Tenev said that “most people actually clustered in the areas where we had offices anyway.”

Tenev said the reason for moving away from remote work is that “having some awareness of what people are doing is important” and interactions that facilitate this are “very difficult to produce in the remote world.” Even if you’re the only person on your team working from your office, Tenev says you should treat things as if “everyone in the company is ‘on your team’.”

What do employees think about working at Revolut?

Like enterprising fintechs like Revolution AND OakNorth, Robinhood is not free from internal criticism. Reviews on the Blind in 2024 workplace forum say managers “will not be ashamed to interrupt work in team chats at 00:00 on a weekend and expect you to respond” and many describe the environment as “chaotic”. One review states that most of these employees are simply “low powered” and only average “~25 hours of actual work per week.” Tenev himself said that people at Revolut need to be “really, really smart and high-powered.”

More positive reviews speak to the quality of the technical staff and say that the technology stack is “pleasant to work with.” They also praise how “open and transparent” the leadership team is. A frequent compliment to Robinhood is its compensation; is in fourth place on our list of fintechs that pay more, and engineers earn an average total compensation of $347.5k, according to Levels.fyi.

Despite the criticism, Robinhood staff appears to be getting results. Robinhood employees generate a obscene amount of revenue per employee, peaking at $871,000 last year. Think you have what it takes to be one of them?

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Fintech

US Agencies Request Information on Bank-Fintech Dealings

Published

6 months ago

30 July, 2024

FinCrypt Staff

Federal banking regulators have issued a statement reminding banks of the potential risks associated with third-party arrangements to provide bank deposit products and services.

The agencies support responsible innovation and banks that engage in these arrangements in a safe and fair manner and in compliance with applicable law. While these arrangements may offer benefits, supervisory experience has identified a number of safety and soundness, compliance, and consumer concerns with the management of these arrangements. The statement details potential risks and provides examples of effective risk management practices for these arrangements. Additionally, the statement reminds banks of existing legal requirements, guidance, and related resources and provides insights that the agencies have gained through their oversight. The statement does not establish new supervisory expectations.

Separately, the agencies requested additional information on a broad range of arrangements between banks and fintechs, including for deposit, payment, and lending products and services. The agencies are seeking input on the nature and implications of arrangements between banks and fintechs and effective risk management practices.

The agencies are considering whether to take additional steps to ensure that banks effectively manage the risks associated with these different types of arrangements.

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Fintech

What changes in financial regulation have impacted the development of financial technology?

Published

6 months ago

30 July, 2024

FinCrypt Staff

Exploring the complex landscape of global financial regulation, we gather insights from leading fintech leaders, including CEOs and finance experts. From the game-changing impact of PSD2 to the significant role of GDPR in data security, explore the four key regulatory changes that have reshaped fintech development, answering the question: “What changes in financial regulation have impacted fintech development?”

PSD2 revolutionizes access to financial technology
GDPR Improves Fintech Data Privacy
Regulatory Sandboxes Drive Fintech Innovation
GDPR Impacts Fintech Data Security

PSD2 revolutionizes access to financial technology

When it comes to regulatory impact on fintech development, nothing comes close to PSD2. This EU regulation has created a new level playing field for market players of all sizes, from fintech startups to established banks. It has had a ripple effect on other markets around the world, inspiring similar regulatory frameworks and driving global innovation in fintech.

The Payment Services Directive (PSD2), the EU law in force since 2018, has revolutionized the fintech industry by requiring banks to provide third-party payment providers (TPPs) with access to payment services and customer account information via open APIs. This has democratized access to financial data, fostering the development of personalized financial instruments and seamless payment solutions. Advanced security measures such as Strong Customer Authentication (SCA) have increased consumer trust, pushing both fintech companies and traditional banks to innovate and collaborate more effectively, resulting in a dynamic and consumer-friendly financial ecosystem.

The impact of PSD2 has extended beyond the EU, inspiring similar regulations around the world. Countries such as the UK, Australia and Canada have launched their own open banking initiatives, spurred by the benefits seen in the EU. PSD2 has highlighted the benefits of open banking, also prompting US financial institutions and fintech companies to explore similar initiatives voluntarily.

This has led to a global wave of fintech innovation, with financial institutions and fintech companies offering more integrated, personalized and secure services. The EU’s leadership in open banking through PSD2 has set a global standard, promoting regulatory harmonization and fostering an interconnected and innovative global financial ecosystem.

Looking ahead, the EU’s PSD3 proposals and Financial Data Access (FIDA) regulations promise to further advance open banking. PSD3 aims to refine and build on PSD2, with a focus on improving transaction security, fraud prevention, and integration between banks and TPPs. FIDA will expand data sharing beyond payment accounts to include areas such as insurance and investments, paving the way for more comprehensive financial products and services.

These developments are set to further enhance connectivity, efficiency and innovation in financial services, cementing open banking as a key component of the global financial infrastructure.

Sebastian Malczyk

General Manager, Technology and Product Consultant Fintech, Insurtech, Miquido

GDPR Improves Fintech Data Privacy

Privacy and data protection have been taken to another level by the General Data Protection Regulation (GDPR), forcing fintech companies to tighten their data management. In compliance with the GDPR, organizations must ensure that personal data is processed fairly, transparently, and securely.

This has led to increased innovation in fintech towards technologies such as encryption and anonymization for data protection. GDPR was described as a top priority in the data protection strategies of 92% of US-based companies surveyed by PwC.

Arid Islam

Financial Expert, Sterlinx Global

Regulatory Sandboxes Drive Fintech Innovation

Since the UK’s Financial Conduct Authority (FCA) pioneered sandbox regulatory frameworks in 2016 to enable fintech startups to explore new products and services, similar frameworks have been introduced in other countries.

This has reduced the “crippling effect on innovation” caused by a “one size fits all” regulatory approach, which would also require machines to be built to complete regulatory compliance before any testing. Successful applications within sandboxes give regulators the confidence to move forward and address gaps in laws, regulations, or supervisory approaches. This has led to widespread adoption of new technologies and business models and helped channel private sector dynamism, while keeping consumers protected and imposing appropriate regulatory requirements.

George Blandford

Co-founder, UK Linkology

GDPR Impacts Fintech Data Security

A big change in financial regulations that has had a real impact on fintech is the 2018 EU General Data Protection Regulation (GDPR). I have seen how GDPR has pushed us to focus more on user privacy and data security.

GDPR means we have to handle personal data much more carefully. At Leverage, we have had to step up our game to meet these new rules. We have improved our data encryption and started doing regular security audits. It was a little tricky at first, but it has made our systems much more secure.

For example, we’ve added features that give users more control over their data, like simple consent tools and clear privacy notices. These changes have helped us comply with GDPR and made our customers feel more confident in how we handle their information.

I believe that GDPR has made fintech companies, including us at Leverage, more transparent and secure. It has helped build trust with our users, showing them that we take data protection seriously.

Dr. Rhett Stubbendeck

CEO & Co-Founder, Leverage Planning

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Fintech

M2P Fintech About to Raise $80M

Published

6 months ago

30 July, 2024

FinCrypt Staff

Application Programming Interface (API) Infrastructure Platform M2P Financial Technology has reached the final round to raise $80 million, at a valuation of $900 million.

Specifically, M2P Fintech, formerly known as Yap, is closing a new funding round involving new and existing investors, according to entrackr.com. The India-based company, which last raised funding two and a half years ago, previously secured $56 million in a round led by Insight Partners, earning a post-money valuation of $650 million.

A source indicated that M2P Fintech is ready to raise $80 million in this new funding round, led by a new investor. Existing backers, including Insight Partners, are also expected to participate. The new funding is expected to go toward enhancing the company’s technology infrastructure and driving growth in domestic and international markets.

What does M2P Fintech do?

M2P Fintech’s API platform enables businesses to provide branded financial services through partnerships with fintech companies while maintaining regulatory compliance. In addition to its operations in India, the company is active in Nepal, UAE, Australia, New Zealand, Philippines, Bahrain, Egypt, and many other countries.

Another source revealed that M2P Fintech’s valuation in this funding round is expected to be between USD 880 million and USD 900 million (post-money). The company has reportedly received a term sheet and the deal is expected to be publicly announced soon. The Tiger Global-backed company has acquired six companies to date, including Goals101, Syntizen, and BSG ITSOFT, to enhance its service offerings.

According to TheKredible, Beenext is the company’s largest shareholder with over 13% ownership, while the co-founders collectively own 34% of the company. Although M2P Fintech has yet to release its FY24 financials, it has reported a significant increase in operating revenue. However, this growth has also been accompanied by a substantial increase in losses.

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Fintech

Scottish financial technology firm Aveni secures £11m to expand AI offering

Published

6 months ago

30 July, 2024

FinCrypt Staff

Aveni, Investment Management, AI, NLP, UK

By Gloria Methri

Today

To come
Aveni Assistance
Aveni Detection

Artificial intelligence Financial Technology Aveni has announced one of the largest Series A investments in a Scottish company this year, amounting to £11 million. The investment is led by Puma Private Equity with participation from Par Equity, Lloyds Banking Group and Nationwide.

Aveni combines AI expertise with extensive financial services experience to create large language models (LLMs) and AI products designed specifically for the financial services industry. It is trusted by some of the UK’s leading financial services firms. It has seen significant business growth over the past two years through its conformity and productivity solutions, Aveni Detect and Aveni Assist.

This investment will enable Aveni to build on the success of its existing products, further consolidate its presence in the sector and introduce advanced technologies through FinLLM, a large-scale language model specifically for financial services.

FinLLM is being developed in partnership with new investors Lloyds Banking Group and Nationwide. It is a large, industry-aligned language model that aims to set the standard for transparent, responsible and ethical adoption of generative AI in UK financial services.

Following the investment, the team developing the FinLLM will be based at the Edinburgh Futures Institute, in a state-of-the-art facility.

Joseph Twigg, CEO of Aveniexplained, “The financial services industry doesn’t need AI models that can quote Shakespeare; it needs AI models that deliver transparency, trust, and most importantly, fairness. The way to achieve this is to develop small, highly tuned language models, trained on financial services data, and reviewed by financial services experts for specific financial services use cases. Generative AI is the most significant technological evolution of our generation, and we are in the early stages of adoption. This represents a significant opportunity for Aveni and our partners. The goal with FinLLM is to set a new standard for the controlled, responsible, and ethical adoption of generative AI, outperforming all other generic models in our select financial services use cases.”