Robinhood has a customer service issue
Trading on Robinhood Markets Inc. takes a few seconds. It may take weeks for an account problem to be resolved.
Robinhood is going through a flood of customer service requests stemming from the growing popularity of the trading app and its January decision to limit trading in highflying stocks, including GameStop Inc. In some cases, Robinhood has locked out the accounts of his clients for more than a month, refusing them. access to their money, according to user interviews and emails reviewed by the Wall Street Journal.
The surge in customer service requests and complaints is a consequence of Robinhood’s rapid growth during a stock rally that drew crowds of daily investors to the market. The brokerage has added millions of new clients over the past year and won first place in Apple Inc.’s App Store on nine different days in 2021, according to research firm Apptopia.
The backlog, combined with dozens of client lawsuits and inquiries from regulators about its practices, consumes management’s time and company resources as Robinhood works to prepare for an initial public offering later this year. year. Customer service issues are particularly problematic as Robinhood plans to sell some of its shares in the IPO to its users, according to people familiar with the matter.
Robinhood opened more new accounts last year than any other DIY brokerage, but scored lower than Vanguard Group, Charles Schwab Corp. and T. Rowe Price Group Inc. on a JD Power investor satisfaction survey. “Robinhood’s strength in digital channels and fee value was offset by poor performance in Trust, People and Problem Solving,” said JD Power.