Robinhood Gives Banking Another Shot a Year After Botched Launch

Robinhood Markets Inc. is giving banking another shot, 10 months after its first attempt at a checking and savings product flamed out in spectacular fashion. On Tuesday, the company laid out a new feature, called Cash Management, which takes a more traditional regulatory approach than the startup’s last foray into bank accounts.

The service will move customers’ uninvested cash from their Robinhood accounts into existing banks, which are already insured the through the Federal Deposit Insurance Corp. By working with established players, Robinhood will avoid a hurdle that flummoxed it last time, when it erroneously assumed that the Securities Investor Protection Corp. would cover the insurance on its planned checking product.