A big US fintech startup just launched in Australia that turns pocket change into investments
US fintech startup Acorns Grow, which turns small change into an investment portfolio, launches in Australia today after a successful trial period with 22,000 people.
The service’s aim is to be an inexpensive, easy way to get into the sharemarket and is targeted at people younger than 35, of which 75% made up its trail customer base in Australia.
It allows users, whether on through the website or mobile app to add their bank account so that it can see their spendings, round up daily purchases, and automatically invest the change into diversified portfolios of index funds. It can be anything from a $3.50 coffee which gets round up to $4 and the extra 50¢ going into the investment account or $80 on a new shirt, and a whole dollar put in.
“We’ve seen huge interest from the Australian market with over 23,000 pre-launch registrations. There’s a real excitement about the app coming to Australia, largely due to the fact that it breaks down the barriers associated with investing such as high start-up costs and being fully invested with the minimum balance of $5.00,” Acorns Australia managing director George Lucas (no, not that one) said.
“It’s about leveling the playing field and opening the market up, particularly to younger generations. It is also about educating people about the benefits of regular small investments into the market.”
