Valued at $5.6 billion in its most recent funding round, Robinhood operates at a compressed margin that’s enabled by technological efficiencies and automation, said Tenev, acknowledging that the company makes less money per person than its competitors. He outlined a cycle of changes that those same companies would need to make to compete on price, which included eventually laying off employees to run a leaner company and doing a better job of attracting tech talent. He noted that the higher margins enabled by commission fees on trades mean there’s less pressure to create an efficient product. Tenev also weighed in on cryptos. “We see that this asset has staying power,” he said, calling bitcoin prices “fractal” and adding it’s “foolish to say that bitcoin is done.”

http://www.wealthmanagement.com/technology/robinhood-ceo-schwab-fidelity-not-really-technology-companies?utm_source=Autonomous+NEXT&utm_campaign=312ec6b2d6-EMAIL_CAMPAIGN_2016_11_04_COPY_01&utm_medium=email&utm_term=0_c8cf357092-312ec6b2d6-100474273