Blog - Raiz Invest

Bring to the table win-win survival strategies to ensure proactive domination. At the end of the day, going forward, a new normal that has evolved from generation.

Man with pen and paper

You are now able to view and download your annual Raiz tax statement for FY 2018/19 on the desktop website. If you don’t have a tax statement available, it means you don’t need one.

How do I download my tax statement?

To view on the desktop website: Go to Settings > Statements > Tax Reports or follow this link. We recommend using Google Chrome as other browsers may not be compatible.

It is best to access your statement on the desktop website as mobile devices may not be able to download the PDF file of your statement.

Need help with your tax return?

Raiz have collaborated with Nixer, an innovative and simple online tax agent to help Raiz users complete tax returns in hopefully less than 10 minutes. Nixer will give a $10 discount on your tax return ($87 down to $77) and invest $5 into your Raiz account when you lodge (you must sign up through Raiz Rewards).

Open Raiz Rewards on mobile
Open Raiz Rewards on desktop

To activate this discount, please use the promotion code RAIZ2019

If you have any problems with the statements, please do not hesitate to contact our Raiz Support Team on 1300 754 748 or email support@raizinvest.com.au

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

download-raiz-app
Click to download the Raiz app

Important Information

The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.

Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.

Man in car with navigation app on phone

By William Jolly from Savings.com.au.

The smartphone and the internet are wonderful things, and new technologies can make it easier than ever to save.

On the flip side, they can also make it much easier to spend, posing a threat to your savings.

Here are four ways financial convenience could be hurting your finances.

You can overpay for simple things

An obvious example of this is Uber and UberEats. Although they’re great products and can be very useful when needed, overusing them can seriously drain your bank account.

For example, you could pay upwards of $15-$20 to Uber from A to B instead of the $3-$6 it might cost you to catch public transport. Likewise, with UberEats – you might spend upwards of $20 or even $30 for a pizza, instead of driving or walking to the nearest pizza place and picking up your order for less than $15.

Another example could be using Airtasker for tasks you could easily do yourself. According to Airtasker, people are often willing to pay between $70 and $140 for simple gardening or cleaning services, while some users have even listed tasks offering over $100 for people to buy cigarettes for them.

Don’t become dependent on share economy apps to get by – doing some things yourself might be harder but your wallet will thank you for it.

You can pay for too many things

Credit and debit cards combined with online payments make it all-too easy to double up on the same kind of service. Take, for example, online streaming. You could buy subscriptions to:

  • Netflix
  • Stan
  • Foxtel Now
  • Amazon Prime
  • Youtube Red
  • Sports streaming like Kayo Sports and Optus Sport

In addition to all of these and many more, you’ll also have the option of subscribing to Disney’s Disney+ streaming service to be released later this year. And who are you to say no to the mouse?

If you paid the minimum subscription fee for each of these, you’d be shelling out roughly $100 a month, more if you upgrade to a bigger plan or must pay things like set-up fees for Foxtel.

So, ask yourself: do you watch $100 worth of content every single month? I’m sure some of you will answer yes, and that’s fine, but this principle can also apply to things like meal deliveries, health and fitness services and more.

Make sure you review your direct debits every few months and eliminate payments you aren’t using.

You can pay for things you don’t need

The ‘Afterpay effect’ is very much a thing in Australia, with about 1.6 million people using buy now, pay later platforms. The ability to buy anything you want at the press of a button and worry about paying it back later is dangerous if not managed correctly.

The same applies to online shopping in general – it’s so much easier to waste money on unnecessary clothing and toys just because you can and it’s right there on a screen in front of you.

According to a recent study from ME Bank, unwanted online purchases cost the average Australian nearly $400 a year. So, think twice before clicking add to cart.

What can you do?

Don’t feel bad for one – it’s easy to spend money nowadays and plenty of people do it. But it’s also easy to use this technology to your advantage. Try any of the following methods to keep on top of your spending:

  • Go into your online banking portal, download your bank statements and track your overall wealth
  • Look for unnecessary direct debits and cancel them
  • Use budgeting and savings apps to track your spending

If you’re still spending too much money, try withdrawing a daily or weekly cash limit from one of those ancient ATM things.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

download-raiz-app
Click to download the Raiz app

Important Information

The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.

Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.

This month we’re giving you the chance to win one of ten $50 bonuses invested into your Raiz account! Simply have ‘Raiz Kids’ enabled with at least one child before July 31st to be eligible for your chance to win. T&Cs here

Tap to open Raiz Kids on Mobile
Click to go to Raiz Kids on Desktop

Not familiar with Raiz Kids? We’ve got you covered with some frequently asked questions below

How does Raiz Kids work?

Raiz Kids uses your pre-existing Raiz account to automatically save for kids. In the Raiz Kids section of the app, you can select the portion of your balance that you want to go towards your Raiz Kids once they’ve turned 18. You can change the portion that goes to your Raiz Kids (via the Slider) at any time. Raiz Kids will then equally split that among the kids you have added.

Change the portion that goes to your Raiz Kids (via the Slider) at any time.

For example, if you have selected 50% of your total balance to go towards your Raiz Kids and your balance is $1000, then $500 of it will go towards your Raiz Kids goal.

If you then put in a $10 recurring deposit, 50% of this ($5) will also go towards your Raiz Kids goal. This can be changed or removed at any time.

Essentially, as your Raiz balance changes in value, your Raiz Kids balance will be adjusted to reflect the portion you have selected.

What happens when they turn 18?

Once your Raiz Kids reach the age of 18, they are then able to open their own Raiz Account, with the option of having the funds transferred into their account. Otherwise, the funds will remain within your account until you request a transfer.

Can I remove my Raiz Kids?

Yes, you are able to edit and remove your Raiz Kids at anytime. Then your balance will then recalculate equally across any remaining Raiz Kids.

Can I still withdraw my balance if it is split into Raiz Kids?

Yes, the balance will withdraw equally among the partitioned amount. For example, if 15% of your total balance is split to go into Raiz Kids, and you wish to withdraw $100, then $15 of that will come from the Raiz Kids goals.

When will I know if I’ve won?

The ten winners will be notified by email when the credit investments will be deposited into their Raiz account, by Friday, 16th August 2019.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

download-raiz-app
Click to download the Raiz app

Important Information

The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.

Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.

01/07/19

George Lucas, Raiz CEO

Bitcoin back on the rise

This week showed Bitcoin was back, riding a new wave of optimism about the value and future of digital currencies. Bitcoin’s price has more than doubled in two months and finished the week around USD11,800 — still some way off the highs of late 2017.

Bitcoin bulls point to Facebook’s recent announcement that it will launch a new digital currency next year, JPMorgan recently creating its own “coin” for payments, and a sharp turn in US monetary policy, as drivers for the digital currency’s bounce-back.

What’s more, a lot of demand is coming from Asia where Bitcoin represents a wave of hope in a deflationary monetary environment — it’s become a safe haven of the digital space.

S&P 500 has best first half in over 2 decades

Away from Bitcoin, Wall Street clinched its best first half of a year since 1997. The S&P500 has now advanced 17.3 per cent since the start of the year, which is the benchmark’s strongest first-half performance since 1997.  It rose 6.9 per cent in the month of June alone.

The strong performance was supported by hopes for a positive outcome for China-US trade relations at the G20. With those predictions proved correct and a truce stuck by presidents Donald Trump and Xi Jinping we expect the rally in global equities to continue in the short term.

Muted US inflation result

Market sentiment this week was also assisted by another soft US inflation reading. The US Federal Reserve’s preferred measure of inflation — the core personal consumption expenditures index — met expectations, rising 1.6 per cent from the prior year period.

The market believes the lack of price pressure will make it easier for the Fed to cut interest rates later this year if signs of weak growth continue.

RBA tipped to make another rate cut

I guess we should expect the Reserve Bank of Australia (RBA) to cut its policy rate to a fresh record low of 1.0 per cent on Tuesday, backing up last month’s 25 basis point move.

An interplay of factors are in the mix for the RBA. One of them is trade, with our expectation being that the trade surplus will have widened to a new record high in May. This will mean that the trade weighted index (TWI) of the AUD will remain strong. The AUD usually tracks the TWI and should be rallying based on the strength of the TWI over the last few months.

The RBA is likely worried that the AUD will follow the TWI and begin to rally, which could strangle the Australian economy. In this context, the only tool they have is to lower interest rates sooner than later, especially now that US Fed has become dovish.

So, the RBA can say whatever it wants about why it’s cutting rates, except that it’s doing it to keep the AUD weak. I believe the RBA doesn’t want the rally in the TWI, caused by the bounce in commodity prices, to flow through to the AUD.

It’s quite simple really, especially as the reason the RBA has given so far don’t make sense — we still have economic momentum and an economy creating jobs.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

download-raiz-app
Click to download the Raiz app

Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website.

Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products.

General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.

hands taking slices of pizza

24/06/19

July isn’t just tax returns

We’re rapidly approaching the start of a new financial year, and whilst EOFY sales and tax returns are top of mind, it’s also a notable month for dividends being paid by ETFs

From the second week of July, look to see your share of over $3,000,000 worth of dividends reinvested back into your Raiz Account.

The exact dates they will paid out is yet to be confirmed, and will vary depending on which portfolio you are investing in. The emerald portfolio, for example, contains unique socially responsible ETFs (named RARI and ETHI) that have different payment dates to ETFs found in other portfolios.

What are Dividends?

As well as gains on market returns from investing, dividends (or distributions) is money paid by a company back to you, their shareholder, out of its profits.

Your chosen Raiz investment portfolio comprises of nine different exchange traded funds (ETFs). ETFs are essentially just a combination of assets (such as stocks, cash or bonds), bundled together under one roof to form a single financial product that can be traded on the stock exchange.

The underlying stocks of these ETFs, which make up the Raiz portfolios, pay dividends from time to time. The ETF provider’s pays these dividends out monthly, quarterly or twice yearly.

All dividends received by Raiz will be automatically re-invested back into your Raiz investment account, and your chosen portfolio.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

download-raiz-app
Click to download the Raiz app

Important Information

The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.

Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.

Women jogging with sunset in the background

Mark your calendar. The Australian Financial Year runs from July 1 to June 30. Most of us are guilty of ignoring our superannuation, but this year, why not include a super health check before June 30?

Latest figures show duplicate account fees and insurance premiums have eaten into our savings by over $2 billion, lost superannuation amounts to $17.5 billion, and one third of us simply haven’t been paid what we are entitled to. Now is a good time to start planning for the next financial year.

So, whether considering consolidating multiple accounts; claiming lost superannuation or checking you’re being paid employer contributions, take a moment to consider a few simple steps that can help set up your superannuation for the future.. Early action could make a real difference to the amount of your retirement savings.

1. Consider consolidating multiple accounts to avoid duplicate fees and insurance premiums.

In 2018, the Productivity Commission identified 10 million unintended multiple superannuation accounts – that’s one-third of all super accounts.

2. If you’ve ever changed jobs, check if any of the lost super held by the tax office is yours.

At 30 June 2018, there were a total of over 6.2 million lost ATO-held accounts, with a total value of $17.5 billion

You can check for lost super with Raiz Super

3. Check you’re being paid the super you are entitled to.

Employers have three months to pay into an employee’s super account, so a wage slip may not reflect the actual payment. If your super doesn’t add up, let them know.

4. Personal Contributions.

Your employer pays you 9.5% of your ordinary-time salary in super contributions. But the law allows you to boost your balance, to make additional personal contributions to your super which may be tax efficient. Please do check with your accountant or tax advisor.

Reward Contributions

If you have Raiz Invest Super you can direct your Raiz Rewards to your Super account with over 180 brand partners paying you forward when you shop online. This means your weekly shopping could be growing your retirement fund automatically.

Personal Contributions

Make one-off voluntary contributions at any time.

Recurring Personal Contributions

With Raiz you can also set up recurring voluntary contributions via the Raiz Super home screen – daily, weekly or monthly.

5. Check you are “super” protected.

Starting 1 July, the government’s ‘Protecting Your Superannuation’ laws will see automatic life insurance potentially being removed from members whose accounts have been inactive for 16 months or more. The aim of the super changes is to prevent costly fees, which bank up over time, eating up balances on inactive accounts. “The Protecting Your Super changes will help reduce account erosion through the additional fees and insurance that come along with unintended duplicate accounts.

The attention is on the fact that the changes are coming on July 1, however more than half of Australians are unaware and an estimated 3 million people could be affected, which would lead to a loss of their insurance money. You can read more about the changes here.

6. First-time buyers’ super.

The government allows first-home buyers to direct up to $30,000 in voluntary [above the 9.5 per cent employer payment] contributions to save up to $30,000 for a home deposit through super at the rate of $15,000 a year. So, if you are thinking of using this scheme, make sure you make a voluntary contribution to kick off the process this financial year.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

download-raiz-app
Click to download the Raiz app

Important Information

The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.

Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.

Pureprofile in the Raiz app
Earn rewards by answering surveys through Pureprofile

Answer surveys = cash invested in you

You can now choose to earn extra money with the data you want to share. We’ve partnered with Pureprofile so you can earn cash rewards by completing surveys within the Raiz app in your spare time!

Go to the Raiz Rewards section in the app and tap on the ‘Pureprofile’ tile (It’s right at the top of the list so it’s easy to find). This is currently only available on the mobile app so please make sure you have the latest version of the Raiz App installed.

Just tap on the Pureprofile tile, located on the top left of Raiz Rewards

Once you have clicked through the Pureprofile tile, tap ‘Start Earning Now’.

You’ll need to answer a few initial questions about yourself, then you’ll be taken to available surveys to answer. Once a survey is completed successfully, the reward will be invested into your Raiz account within 30 days. Reward amounts are stated before you complete the survey. Please note some surveys may be unpaid.

Please refer to full Terms & Conditions here.

We are always striving to bring you innovative ways to invest small amounts regularly!

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

download-raiz-app
Click to download the Raiz app

Kids with cape on

Kids can be impulsive, cry when they don’t get what they want, or be ecstatic seeing Santa’s presents under the tree. Parents have to convince a toddler why they aren’t allowed to get into the washing machine with their clothes, all the while thinking what’s to come next.

After investing so much time into your kid’s development, a sought-after milestone is to see them start their adult lives with sound financial literacy, coupled with some of their own money set aside – valuable tools that can help them lead happy and successful lives.

Research published in 2018 by the Australian government found that the minimum cost of raising one child, for a low-income family, ranges from $140-170 per week, or $7280-8840 per year – and that’s the bare minimum. Moreover, a survey conducted by the ABC in 2018 found that over half of Aussies aged 18-29 have less than $5k in savings, whilst over a quarter have more than $5k in debt (excluding HELP/HECS debt).

Whilst money won’t be the sole factor that affects your kid’s future, equipping them with financial life skills and a little bit of extra cash can go a long way in adding a boost later in life.

The earlier you start, the more time money has to grow and take advantage of compound returns. For example, with the power of compounding, if you were to invest $1,000 every year for 18 years, assuming average returns of 7% p.a.*, that investment could grow to be worth $34,000, off your $18,000 investment. That’s a total return of $16,000.**

graph showing returns of investing $1000 per year for 18 years, with returns of 7% per annum
When invested, your savings have the potential to significantly grow over 18 years.

How’s that for an 18th Birthday present?

Where can I invest in my kid’s future?

If you’re putting money aside for your kids, and want to see those savings grow over time, there are multiple places to consider investing your money.

Savings Account

Savings accounts won’t earn you a lot of interest, with their primary benefit coming in the form of virtually no risk (the Australian Government guarantees deposits up to $250k in Authorised Deposit-taking Institutions). Our research found that 85% of Australians don’t know the interest rate on their average savings account, so be sure to be vigilant when comparing rates, as some accounts offer higher introductory rates before being reduced significantly.

George Lucas, our CEO says: “Many Australians are completely unaware of the best options to protect and grow their income and think they’re getting 2-3 per cent on their savings accounts when, depending on the bank, it’s often less than 1 per cent.”

“This is due to the way saving accounts are advertised with introductory offers. At this interest rate, if Australians are using their savings accounts to save money, with inflation, the opposite is happening and they’re actually going backwards.”

This is an important consideration when saving for kids, as your kids will be likely living at a time with higher cost in living in the future e.g. housing & petrol, so the money you save for them might not be worth as much as it is today if you keep it only in a savings account.

Other features to consider are minimum and maximum account balances, account-keeping fees if any, the conditions needed for any bonus interest, and whether a linked account is required.

Investment bond

Investment bonds are like managed funds, combined with an insurance policy. Your money is pooled with money from other investors, with an investment manager making the day to day investment decisions. The main advantage of an investment bond is that they can be a tax effective way to invest for the long-term, provided certain conditions are met.

The potential tax benefits and long-term nature of investment bonds means they can make for a nice way to invest for your kid’s future as they can benefit from potentially a lower tax rate on earnings received after 10 years.

Raiz Kids

Raiz Kids is a simple way to save and invest for your children and/or dependents who are under the age of 18. It essentially works the same as your normal Raiz account, which lets you invest small amounts regularly into one of six diversified portfolios that are invested across cash, bonds, domestic and international shares.

By adding a partition to your Raiz account, it allows you to nominate a portion of your Raiz balance (or even all of it) to be transferred to your kid’s when they turn 18. Nothing is set in stone, and you can adjust the Raiz Kids portion at any time. Once your children reach the age of 18, they are then able to open their own Raiz Account, with the option of having these funds transferred into their account.

Since inception, the avg. Raiz investor has made 12.4% p.a.* as of Dec 2018 (return includes all fees but before the $1.25 monthly maintenance fee).

Teach along the way

It’s also important that setting aside money for your kid’s future is tied together with teachings in financial literacy. It would be a wasted opportunity to be setting them up with additional cash if they don’t know how to responsibly manage it. Basic financial literacy is an important skill set that your kids will take with them throughout their entire lives.

Pocket money is one of the most popular ways to teach kids the value of money at a young age. Paying them in cash for completing helpful chores and jobs gives them a tangible experience with money, allowing them to see their piggy bank grow before their eyes.

As they get older, help them open a savings account, and encourage them to set savings goals. Involve them in writing out shopping lists before visits to the supermarket by explaining what you need, the price of those things, and how much money you have to spend. Consider setting up a Raiz kids account, which can give them basic exposure to the market and compound interest.

As they make their way through their teenage years, be sure to keep on building on what you have taught them.

*Past performance is not an indication and should not be relied on for future performance.

**Return estimated for the sake of simplicity as past performance is no indication of future performance – see ASICS managed funds fee calculator to get an estimate on how fees and costs can affect your investment. Return estimate is net of MER. The value is a future value, not a present value.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

download-raiz-app
Click to download the Raiz app

Important Information

The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.

Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.

Malaysia city skyline

Raiz Invest  has taken a major step forward in its push into Southeast Asia with the
signing of a joint venture agreement (JVA) with a subsidiary of a leading Malaysian investment
institution.

The JVA is with Jewel Digital Ventures Sdn Bhd (Jewel), a wholly-owned subsidiary of PNB Equity
Resource Corporation Sdn Bhd (PERC), which, in turn, is wholly owned by Permodalan Nasional
Berhad (PNB) (www.pnb.com.my). Jewel is the investment vehicle set up by PNB to spearhead its
digital business strategy which aims to unlock digital value propositions for current and future
customers of Amanah Saham Nasional Berhad (ASNB), PNB’s wholly owned unit trust management
company. PNB is one of the largest fund management companies in Malaysia with assets under
management of RM298.5 billion (A$103.9 billion) across 13.8 million accounts.

Raiz Chairman Tony Fay, says: “Reaching agreement with PNB is an exciting development as we
continue our push into Southeast Asia.”

“By joining forces with a trusted and reputable group such as PNB, we are laying the foundations for
sustainable growth in some of the fastest growing markets in the world where there is a genuine
appetite for fintech products and services,” he said.

The joint venture is a 70%/30% split between Raiz and Jewel respectively with Raiz primarily providing
the technology while Jewel will provide the required capital once the condition precedents are met,
including a granting of a licence in Malaysia. Raiz Malaysia will be a fully consolidated entity into Raiz
Invest Limited.

The JVA also outlines how Raiz and PNB will partner in other Southeast Asian countries.
Tony Fay continued: “PNB and its strategic holdings have significant presence in Southeast Asia,
which will only benefit Raiz’s efforts to enter these markets. With a population of 33 million people,
Malaysia represents an excellent opportunity for our business.”

“With the JVA executed, the next step is to submit a formal application to the regulator for the license.
Discussions with the regulator are progressing, and at this stage, subject to regulatory approval, it is
anticipated the platform will go live towards the end of CY19 or early in the New Year. The work done
on the platform to support the Indonesian launch (anticipated 3Q CY 19) will facilitate an efficient roll
out in Malaysia,” he said.

Raiz’s growth strategy and vision includes expansion into Southeast Asia. In December 2018, Raiz
secured approval for a licence to distribute mutual funds in Indonesia. The Indonesian business was
launched in March 2019, with the App expected to be released in the September 2019 quarter.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

download-raiz-app
Click to download the Raiz app

Important Information

The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.

Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.

A full bookshelf

George Lucas, Raiz CEO

A defining aspect of the Raiz story

Enhancing financially literacy has always been integral to the Raiz Invest story. From the time we first hung out our shingle in March 2016 under the Acorns banner, we appreciated that the millennials signing up in their droves were often as thirsty for financial information as they were for the technology that allowed them to save and invest their small change.

It seemed to me we had really hit a sweet spot. Financial advice was largely out of their financial reach (even more so post the Financial Services Royal Commission), as were fund managers. Bank interest rates were (and are) derisory, just like the customer service they offer.

So, a micro-investing platform – mobile phone or web app – that not only allows millennials to save their loose change on a regular basis but to invest in a portfolio of funds was just what they wanted. But it wasn’t just the practical application of our technology, or the ease in which millennials could access it.

No, it was they way we engaged with them, using social media to explain the roll-out of new services and products that meet their changing needs. And underpinning it has been an educational-centric focus from day 1 – and that will never change.

Enhancing financial literacy in Indonesia

But if it’s been an exciting – and rewarding – journey in Australia, then Indonesia, where we have received a licence to distribute mutual funds, will be much more so, especially when it comes to spreading the financial literacy message.

Like so many businesses looking to expand in the fourth most populous country in the world, we had no concept of the enormity of the opportunity – or the magnitude of the task. Now we appreciate both.

The numbers tell it all. Currently there are about 100 million bank accounts in Indonesia, but the number of mutual fund investors is less than a million. The simplistic – and wrong – explanation for the disparity between these two numbers is that Indonesia is a poor country.

It’s wrong because as the respected Boston Consulting Group points out, the emerging middle, middle and upper middle-class consumers in Indonesia are estimated to be 168 million by 2030 – and that’s out of a total population of 270 million.

Crowded street in Jakarta, Indonesia
The population of Indonesia is over 269 million

For Raiz, this is only half the story. Although this country missed the PC revolution, it is certainly embracing the smart phone. Research shows there are about 180 million users, and of this number at least 120 million are active on social media. It’s tailor made for us.

We will use social media to enhance financial literacy. Instead of people having to learn about it (and that approach has struggled globally), with Raiz they get hands-on experience via a medium they understand. As in Australia, many young people who never thought they could save can now do so by automating the process.

Once they start saving, they want to know how it’s invested. It’s a natural progression. Instead of seeing investment as the preserve of the rich, it becomes something they can relate to in their lives. In this way we are actively helping remove a barrier to wealth creation and will potentially improve the lives of many.

Don’t get me wrong. We think Indonesia is an exciting business opportunity. But commercial goals and having a positive impact on young people’s savings and investing habits don’t have to be mutually exclusive. For once, that old cliché, a win-win situation, is valid.

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download-raiz-app
Click to download the Raiz app

Important Information

The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.

Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.

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