(Reuters) – Stock-trading startup Robinhood said on Wednesday it was withdrawing its bank charter application with the U.S Office of the Comptroller of the Currency.
The Menlo Park, California-based firm is one of the several companies that aim to compete with traditional financial institutions by offering cheaper and more user friendly digital services.
“Robinhood will continue to focus on increasing participation in the financial system and challenging the industry to better serve everyone,” a company spokesperson said.
The company, which provides commission-free stock trading through its app, has gained popularity among young consumers and has been looking to expand the types of financial services it offers.
In July, it raised $323 million in a funding round, valuing the startup at $7.6 billion.
Reporting by Abhishek Manikandan in Bengaluru