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Brought to you by BULLS N’ BEARS
James Pearson
Micro investment manager Raiz Invest is proving that small change can add up to big numbers.
The Aussie micro-investing pioneer has clocked up a record $2.1 billion in funds under management (FUM) for the December quarter, up a punchy 28.5 per cent year on year, as customers kept tipping money into the platform despite jittery markets and Christmas cost-of-living pressures.
Behind the slick app interface, Raiz operates much like a traditional investment fund – however, the way it gathers cash is anything but old-school. It’s clever round-up feature skims the spare change from everyday client credit card purchases, from morning coffees to late-night Uber rides. The money is then funnelled straight into an investment portfolio as a set-and-forget wealth builder – quietly turning small change into serious savings.
The company says net inflows alone accounted for $62 million in the quarter, with about 91 per cent of funds under management growth driven by fresh cash rather than market gains.
The company says active customers during the quarter nudged up to 336,048, a 5.7 per cent lift on the same time last year, with numbers already rebounding to nearly 340,000 by late January as the new year investing mindset kicked in.
The company’s higher margin Plus portfolios also continued to surge, up 50 per cent year on year to $369.4 million, while its Kids product leapt 65 per cent, hitting the $100 million mark.
The company’s Super product, aimed at the nation’s superannuation market also quietly built scale, with customers up 17.4 per cent year on year to 14,782 and funds under management climbing past $434 million. Average account balances across the platform rose more than 21 per cent over the year to $6,145, suggesting customers are not just signing up – they are sticking around and adding more.
Management has mapped out an ambitious product roadmap for the year ahead. The company says it plans to roll out direct access to US-listed equities as an investment opportunity and with new infrastructure now being installed, customers will soon be able to trade ASX shares directly under a single Holder Identification Number (HIN).
Together, Raiz believes the initiatives have pushed the business beyond its micro-investing roots towards a broader digital wealth platform, giving users more reasons to keep their entire investing lives within the app.
Layered over the top of the fresh product range is a heavy dose of AI. Raiz is developing AI-enabled digital onboarding, smarter rewards targeting and even a personalised financial “coach” that can help automate round-ups. The company says faster payments and near real-time trading are also on the menu, which should make the platform far more dynamic and responsive.
To keep the customer funnel flowing, Raiz has teamed up with the youth platform Year13, which reaches millions of young Aussies each year. The partnership is aimed squarely at Gen Z – the next wave of first-time investors who are comfortable with apps, automation and bite-sized investing.
Despite slightly softer customer growth of 0.2 per cent over the previous quarter, the new year has picked up the slack with investor numbers already lifting 1.1 per cent so far this month. Notably, management says it remains on track to deliver a full-year underlying EBITDA of $4.5 million to $5.5 million in 2026, underpinned by a scalable model and an expanding suite of products.
With record funds under management, rising account balances, higher-value products gaining traction and new direct investing tools on the way, Raiz looks set to shift from a spare-change novelty to a genuine digital wealth contender…..and quickly.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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