Raiz Invest managing director and chief executive officer Brendan Malone said: “In the past quarter, we were encouraged by the continued loyalty of our customers, with minimal churn following the August price increase. We have an exciting product roadmap and are actively pursuing new strategic partnerships across different industries to expand our customer base and grow our Super offering. We also continue to look for additional organic growth strategies and M&A opportunities.”
Raiz’s decision earlier in the year to focus its attention on higher-value products appears to be paying off handsomely. Its Plus Portfolios – designed for users who want more control and flexibility over how their money is invested – surged 72.6 per cent year-on-year to $346.4 million.
Similarly, the self-styled Kids Portfolios jumped 76.9 per cent to $92.7 million. The company’s superannuation division also maintained momentum, climbing 19 per cent to $417 million in FUM.
At the core of Raiz’s growth strategy is the shift to a broadening product mix. The quarter saw the launch of Raiz Lite, which is a new low-cost plan aimed at first-time investors, alongside Raiz Academy – an online education platform designed to help everyday Australians manage their money with more confidence.
And the early numbers suggest the strategy is striking the right chord. Since launching, Raiz says less than 0.2 per cent of existing users have churned to the cheaper product.
Meanwhile, more than 30 per cent of new customers have already upgraded from the starter product to higher-value plans – a textbook example of how a savvy tiered product lineup can widen the catchment at the bottom while deepening engagement at the top.
The refreshed fee structure and new offerings have also shifted behaviour, with 36 per cent more customers now selecting the Plus option as their first choice compared to a year ago in a sign that customers are becoming more familiar with the dark art of stock picking.
Raiz has also been busy sewing up Strategic alliances, A new joint marketing push with State Street Investment Management has boosted investor interest in the SPY exchange traded fund, which provides Australian investors direct exposure to the US S&P 500 index.
Elsewhere, a fresh partnership with the finger-lickin’ giant, KFC, is boosting financial education among the fast-food chain’s predominantly young workforce through Raiz’s app-based platform.
With record inflows, growing cross-product engagement and a strengthened brand presence through new partnerships, Raiz appears well placed to build on its momentum.
For a company that began by rounding up spare change, Raiz now appears to be rounding up record profits – and it’s doing so with the kind of traction most fintechs can only dream of.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
