Micro-investment app Acorns Grow Australia has rebranded itself as Raiz Invest.
Raiz Invest has kept all the technology and savings features of Acorns Grows Australia, but the re-brand was mandated as a result of Instreet Investment increasing its ownership stake in the company.
“From a branding point of the challenge what we have now is to make sure the good qualities about Acorns are transferred to the Raiz brand, such as the features of the app, the customer service, core things around transparency and responsibility,” says George Lucas, managing director, Raiz. “It’s about raising confidence in people’s ability to get their finances under control, transferred over to the Raiz brand.”
Raiz is majority-owned by Instreet Investment., Acorns Grow Australia Limited was a joint venture between Instreet Investment and U.S.-based Acorns Grow Incorporated. Acorns Grow Incorporated will keep a minority interest in the new ownership structure, Instreet said.
Raiz is working to launch its superannuation product. For the moment, while working through the process of establishing a superannuation fund, Raiz has predominately marketed its superannuation offering to existing members, and George says there’s a strong response.
“The response has been really good – we haven’t been marketing it that hard, and we’re happy with the response,” George says. “We have to wait until the super product is ready and we’ll start getting feedback when it’s released and evolve from there. We have an agile model and we can easily implement changes that benefit our members.”
In building on the launch of its super product, Raiz will look to roll out more community-led solutions over the next year, says Matthew Dent of Raiz.
“People have been using Raiz as a day to day savings App, but they haven’t necessarily considered the same approach could have a significant impact if applied to their retirement savings,” Matthew says. “We’re planning to play into that space, and as Raiz evolves, we continually find opportunities to understand and meet the emerging needs of our customers.”
George also says Instreet Investments plan to list Raiz on the ASX at some point in future. Raiz has been expanding its products since being introduced as Acorns in 2016. Other new features include Raiz Kids (formerly known as Little Acorns) , a savings tool for children, carbon offsetting and the introduction of an ethical investing portfolio called Emerald. The Emerald portfolio is a diversified option and is invested in exchange traded funds (ETFs) providing investors exposure to Australian equities, International equities, Fixed Interest and Cash – that are traded on a stock exchange. The Emerald portfolio is primarily invested in two ETFs – the Russell Investments Australian Responsible Investment ETF (RARI) and the BetaShares Global Sustainability Leaders ETF (ETHI).
“Demand for a SRI portfolio was one of our customers biggest requests during the first 12 months since launching,” says Matthew. “We listened and we added the Emerald portfolio, which now has in excess of 15,000 investors. Another one, in terms of behaviour and listening to our customers, we had big feedback on how does it become a tool where grandparents can spend, but also save for grandchildren. That led us to develop Raiz Kids. – a Raiz community-led idea.”