Australian financial technology company Raiz Invest claimed it has helped Australian Millennials and Gen Zs to save and invest $441 million in 2023 and $2.4 billion since its launch in 2016.
The Raiz 2023 data shows Millennials and Gen Z are looking out for technology solutions that integrate into their lifestyle rather than seeing their financial goals through the lens of traditional saving structures, eschewing the “save 10% of your salary” adage, which is no longer relevant in 2024.
The Raiz app is built on two core principles, “small amounts add up over time”, and that “customers need ways to save and invest within their current lifestyles”, so it doesn’t become a separate administrative task.
Bearing this principle in mind, the app has been downloaded over 1.4 million times, reach close to 300,000 active monthly users and has seen more than $1.24 billion in Funds Under Management (FUM), generating more than $130 million in dividends reinvested for customers as of 30 January 2024.
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Raiz said that 71% of its customers are Millennial or Gen Z.
Breaking down barriers
Raiz said it has five ways to furnish an investment account and it features nine diverse portfolios to choose from.
The automated Round-Up feature of everyday purchases to the next dollar and investing the difference has facilitated more than 906 million transactions and investments of over $571 million since the company launched eight years ago this month and is currently seeing over $1.7 million a week land in customers’ investment portfolios.
Additionally, the Raiz Rewards program, which offers a percentage of online and in-store purchases from over 1,300 retailers back as investments into customer’s portfolios or Superannuation account, has produced almost $6 million, Raiz claimed.
Technology has fundamentally changed the way we interact with money, making it much easier to spend and making it increasingly harder to save,” said Raiz Invest CEO Brendan Malone.
“Finding new and innovative ways to get ahead is crucial as yesterday’s saving frameworks are losing relevance in today’s digital economy. Over the past eight years we’ve focused on building a savings and investment platform designed to simplify the approach for first-time investors and remove some of the major hurdles to entering the market.”
“By leaning on automated processes to help take the work and worry out of saving and investing, Raiz is helping Aussies get ahead and stay ahead,” Malone added.