Australian millennials & Gen Z save $2.4bn using Raiz Invest app

Over 300,000 active monthly Australian users of the micro-investing app, Raiz Invest, mainly comprising of millennials and Gen Z, collectively saved more than $441 million in 2023 and a staggering $2.4 billion since its initiation eight years ago, according to data released by the company. The substantial savings were accumulated in an era where the cost-of-living crisis has rendered the ambition of owning a property increasingly unattainable.

Among the beneficiaries of Raiz's technology-aided saving and investing mechanisms is Sam Savage, 31, a Stonemason from Alexandria in Sydney. According to him, "I first got Raiz to save up for trips back home to Bristol and to put money towards starting my business. I've been able to do both while learning about investing which I didn't expect. Raiz works for me because I don't even notice the money coming out, but I get to invest it in the things that I want like ETFs, Bitcoin and property."

Faced with a persistent cost of living crisis, many Australians have found the traditional 'save 10% of your salary' principle challenging. Raiz's 2023 results illustrate how millennials and Gen Z are utilising innovative solutions that assimilate into their lifestyles, rather than strictly following conventional savings structures.

Built upon two core principles — 'small amounts add up over time' and 'customers need ways to save and invest within their current lifestyles', Raiz, since its inception, has been downloaded over 1.4 million times with around 300,000 active monthly users as of January 2024. The Raiz app has supervised more than $1.24 billion in Funds Under Management (FUM), generating further dividends of $130 million reinvested back into customer accounts.

The app's major user base, approximately 71%, is constituted by millennials and Gen Z. Their pronounced preference for Raiz testifies to the success of the app's strategy which enables them to progressively realise their long-term financial goals without upsetting their current lifestyle.

Raiz has been instrumental in breaking down barriers to investment for first-time investors, offering a variety of user-friendly features. With five ways to fund an investment account and nine diverse portfolios to choose from, Raiz has facilitated over 906 million transactions and investments amounting to over $571 million. It currently sees over $1.7 million weekly inflows reach customers' investment portfolios. Additionally, the Raiz Rewards programme, which offers a proportion of online and instore purchases from over 1,300 retailers back as investments into customers' portfolios or Superannuation account, has generated almost $6 million.

Brendan Malone, CEO of Raiz Invest, highlights how their platform's innovative approaches to saving and investing have been essential in the digital age where technology has made spending easier and saving harder. According to Malone, "Finding new and innovative ways to get ahead is crucial as yesterday's saving frameworks are losing relevance in today's digital economy. Over the past eight years we've focused on building a savings and investment platform designed to simplify the approach for first-time investors and remove some of the major hurdles to entering the market. By leaning on automated processes to help take the work and worry out of saving and investing, Raiz is helping Aussies get ahead and stay ahead."