Acorns Australia, the micro-investing app has reached a milestone of over $100 million in funds under management (FUM) which highlights Australians’ appetite for new ways to save and invest.
According to the company, which has more than 300,000 users, the growth in FUM was largely driven by millennials.
EY FinTech Adoption Index also found that Australia was a world leader in the adoption of Fintech and was well ahead of other markets such as Hong Kong, Singapore and the United States.
Acorns, which does not charge brokerage fees and said it had one of the smallest investment amounts in the industry, stressed it was able to keep costs low because of the volume of Australians coming together to invest in the app.
Acorns’ managing director, George Lucas, explained: “We are a customer-focused business and it’s because of our 300,000 strong Acorns community that we have been able to provide a service with zero transaction, switching or brokerage fees and keep our minimum investment extremely low.
“In turn, this creates access for all, democratising the power of wise investments.”
According to Acorns, since inception the average Acorns user has made 10.5 per cent (end of July, 2017) on their investment after fees but before the $1.25 monthly subscription fee.
“This type of return goes a long way for our user base, who are finding it is the extra cover they need for short-term, medium-term savings goals,” Lucas said.