Web and mobile micro‑investment application
Raiz Invest Limited, or simply Raiz, is Australia’s largest mobile-first savings and investing platform.
The company was founded in 2015 as Acorns Australia, the local arm of the US-based micro-investing platform Acorns. Around the same time, Richard Brookes, now the CTO of Raiz, who had once dealt with Onix, recommended our team for building a modified version of Acorns for the Australian market.
Thus, in early 2016, the first of its kind mobile-led, consumer-focused financial services platform was launched, pioneering micro-investing for Australians aged 18 to 35. In 2018, Acorns Australia rebranded as Raiz Invest.
Since its inception, the company has been committed to improving its customers’ financial literacy and empowering them to invest in the stock market from a young age.
Historically, two factors have worked against younger investors. First, they lacked knowledge about how to start investing in the stock market. Secondly, investment funds, financial advisers, and stockbrokers are interested only in clients with substantial sums to invest. By addressing both of these barriers to entry, Raiz is enabling a whole new class of investors.
The Raiz philosophy is about disciplined saving and investing small amounts regularly. Their user-friendly automated savings and investment application uniquely links simplified investing with everyday life. Its key feature is literally empowering everyday people to invest while spending.
There’s no minimum account balance requirement to open a Raiz account, and users can gain hands-on experience on saving and investing in global markets even with very modest amounts.
Raiz Invest is available via a website and a handy app for Apple and Android devices. The platform offers users an easy way to regularly invest small or large amounts, in or outside superannuation, into one of seven portfolios.
Each portfolio is a mix of Exchange Traded Funds (ETFs) quoted on the Australian Securities Exchange and provides different levels of risks and returns:
Monthly amount of investment
To see projection value, plese enter how much money you want to invest monthly:
Users can choose from three investing methods and benefit from the opportunities to:
Round-Ups is the key benefit of using Raiz: it turns its users’ everyday purchases into an investment tool. Users that opt in to this feature link one or several credit/debit cards to Raiz’s funding account. After that, every time they swipe a connected card, the virtual change goes to their account to invest.
The app monitors the user’s EFTPOS transactions and rounds up the spends to the nearest dollar. If they pay $8.40 for lunch, the actual change of $0.60 they would have had is automatically allocated to their account in the app. When the accumulated virtual change reaches the AUD$5 threshold, Raiz automatically invests it into the user’s chosen ETFs.
Raiz has a unique algorithm that keeps the funds in a user’s account within the chosen portfolio’s target range. Users need to agree to the automated procedure of rebalancing their account, which will balance the ETFs despite market fluctuations.
Every time they deposit or withdraw funds, Raiz automatically adjusts the proportions of ETFs purchased to move the account towards its target portfolio allocation. It also periodically reviews and rebalances their portfolio whenever the percentage holding of one or more ETFs fluctuates 5% above or below its target allocation. Rebalancing also occurs when users request to change their portfolio. Raiz sells overrepresented ETFs and uses the proceeds to buy underrepresented ETFs to bring the portfolio in line with its new target allocation.
Onix’s developers were initially contracted to build a version of the original American Acorns application that was to be adapted for the Australian market. They worked on iOS and Android versions of the app and a web application with responsive web design
Their first task was to merge the code from the original software with the new Australian app and then add new features unique to the Australian market.
The customer provided the code to start work with, but the apps’ code has gone through a number of transformations:
Lasted two years
Involved four UX/UI experts
Included the creation of 400 mobile screens and nearly as many web pages
The outcomes of the project were more than satisfying both for Raiz and Onix.
Active users in the App Store
Funds Under Management (FUM) rose by
to AUD$453.6 million, and active customers by
to 223,730 during the financial year
As of 30 June 2020, Raiz had AUD$13 million in the bank
Raiz attracted over
signups to the app in Indonesia’s market. Raiz Malaysia has over
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