George Lucas
Following its official launch in Australia three weeks ago, spare-change investment app Acorns, yesterday announced it has received over 50,000 sign-ups, confirming Australia’s appetite for FinTech innovation.
After amassing more than 26,000 Australian sign-ups in its beta stage, Acorns Australia has quickly exceeded the comparative growth rate it experienced when the app launched in the U.S.
The free app allows Australians to round up their daily purchases and automatically Invest the Change® into a diversified portfolio of ETFs. It has been designed to introduce first-time investors to the stock market and remove traditional entry barriers, such as high fees, associated with the sector.
Revealing local analytics for the first time, George Lucas, Managing Director of Acorns Australia, says the app’s success to date is being driven by young Australians who are discovering the benefits of regular, small investments.
“Fifty per cent of downloads have been generated by investors aged 25 – 34 years. These digital natives are new to the investment game and the app is giving them an easy way to get started. Acorns’ technology levels the playing field, opening up the market to all generations while disrupting the associations pinned to stocks, shares and investing.
“The manner in which Australians have quickly embraced this new way of investing and saving illustrates the power of FinTech. Our success to date supports the Turnbull government’s view on the potential of FinTech to benefit consumers by stimulating competition and driving innovation.
“Before Acorns, first-time investors were traditionally confronted by large market fees, commission and minimum investments sums of around $1000. By simplifying this approach, Acorns enables its users to commence their journey to investment with the minimum balance of $5.”
Australians’ enthusiasm for the app has shown their comfort in providing personal details – including banks logins and credentials.
“The bank-level security ensures that all reasonable efforts have been made to ensure our customer data is secure. This adds an extra level of reassurance to our ever-expanding customer base.” added Mr. Lucas.
Australia is the first country to receive the app outside of the U.S., being launched by a joint venture between Instreet Investments Limited and the U.S. start-up Acorns Grow, Inc.
The app is available to download on Apple and Android devices.