Raiz Invest will be officially launched on the third quarter of this year as a bid of its expansion strategy in Southeast Asia
Raiz Invest, a micro-investment app from Australia, has entered Indonesia and plans to be released in the third quarter of 2019. Raiz Invest said that its main plan would be increasing
the number of new mutual fund investors to 400,000 until 2020.
Raiz Invest encourages people to take spare change they have from their daily spending every day to be invested.
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“Usually people simply throw their spare change into a jar or a piggy bank, only to find – much to their surprise – that over time they can accumulate quite a significant amount of money. This is something that everyone can surely do and afford,” said Melinda N. Wiria, Chief Executive Officer of Raiz Invest Indonesia.
Raiz Invest revealed a data from Central Bureau of Statistics (BPS) in Indonesia that as per May 2018, there are 190.5 million people aged 15 years old and above in Indonesia but only 17.8 percent, or approximately 33.9 million people have at least one bank account.
Based on Indonesian Central Securities Depository (KSEI) data, the number of mutual fund investors in Indonesia stood at mere 820,000 as per July 2018, which is a low rate of financial inclusion that’s believed to hinder Indonesians from many opportunities.
Using the Raiz app, people can collect spare change and automatically invest in capital markets.
The app will collect users’ spare change from their spending simply by linking users’ debit cards and/or e-wallets so that whenever a user spends from those debit cards or e-wallets, Raiz will roundup each transaction amount to nearest IDR5,000 (US$0.35). Once the accumulated roundup amount hit the threshold of IDR10,000 (US$0.70), that amount will be automatically invested into mutual funds.
Raiz also allows users to invest regularly using the recurring investment feature or in lump sum to increase the value of their Raiz investment account.
Raiz was launched in February 2016 as Acorns in Australia, before being rebranded as Raiz Invest in April 2018 and now has boasted more than 175,000 monthly active users in Australia.
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“The app is designed for those who know little about investing or don’t know how to start. It’s about levelling the playing field and opening market up, particularly to younger generations of millennials. It is also about educating people about the benefits of small yet regular investment into the market,” stated George Lucas, CEO of Raiz Invest Australia.
Indonesia marks Raiz’s expansion to Southeast Asia.
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The post Australia-grown micro investment app Raiz Invest enters Indonesia appeared first on e27.
Source: E27