People still use Bank of America and Wells Fargo despite the incredibly customer-hostile things they've done in the past. I will not be surprised if Robinhood weathers this pretty well after a short term hit.
Everybody needs to bank, those pay checks gotta go somewhere.
The portion of people who invest -- outside of forced investing through 401k, etc. -- is pretty small in comparison.
Those that are using an investment application to speculate on stocks on their phone are a smaller yet demographic. And I'll bet that, dollars to donuts, they're more informed about everything, and more willing to shop.
When doing the right thing takes more work than the current situation, people are probably going to do nothing as long as it's not too uncomfortable. It's akin to canceling subscriptions.
I lazily left my 401k at my previous job "running" for 18 months before finally rolling it into my personal IRA. I'm sure I'm not alone in this.
I'm personally of the opinion that it's limited choices. Banks have been merging and suppressing new entries to the business for decades. Around here, there are basically two large banks and a handful of credit unions.
Wells Fargo literally opened accounts for people without their consent, pushing balances below critical thresholds and causing their customers to lose money they had no right to lose to fees. BoA foreclosed on homes they never should have foreclosed on.
These weren't one-off incidents (Robinhood has not, yet, established a trend), these were systemic issues with these banks. And people still go to them. They're getting new accounts daily, not subsisting off of legacy accounts.
The portion of people who invest -- outside of forced investing through 401k, etc. -- is pretty small in comparison.
Those that are using an investment application to speculate on stocks on their phone are a smaller yet demographic. And I'll bet that, dollars to donuts, they're more informed about everything, and more willing to shop.