Created to disrupt the stereotypes of the investment industry, the Fintech app, Acorns, has been downloaded by over two million users since it launched in the US in July 2014. Now, after announcing its availability on Australian smartphones, a similar surge in sign-ups is expected from the Australian market – the first country to receive the app outside the United States.
Acorns allows users to invest their spare change into an investment portfolio by automatically rounding up transactions to the nearest dollar when purchases are made on credit or debit card.
With over 27 years’ experience in the investment banking and fund management industry, Managing Director of Acorns Australia, George Lucas said “we’ve seen huge interest from the Australian market with over 26,000 sign ups throughout beta.
“There’s a real excitement about the app coming to Australia, largely due to the fact that it breaks down the barriers associated with investing such as high start-up costs and being fully invested with the minimum balance of $5.00.”
Users of the app are able to select one of five portfolios which range from conservative to aggressive and an annual fee of $15 will be charged for accounts holding under $5000. It is estimated that users have invested over $100 million since its inception in 2014 and have received over $2 million in dividends.
“The ethos behind Acorns is using technology to make it easier for people to save and invest. The app is perfect for those who know little about investing or don’t know how to start.
“It’s about levelling the playing field and opening the market up, particularly to younger generations. It is also about educating people about the benefits of regular small investments into the market,” said Lucas.
The app is being launched as part of a 50/50 joint venture established in March 2015 between independent investment house, Instreet Investments Limited and Acorns Grow.