We quietly achieved in the first three months of the 2020-21 financial year, with these achievements giving us grounds for optimism that the growth Raiz is enjoying will remain on track. Considering the global COVID-induced recession, this is a notable achievement of which I am immensely proud.
Since my last letter, much of Australia has returned to something closer to normality, especially with Melbourne finally appearing to be getting its second wave under control, but we all know from bitter experience just how virulent COVID is.
Like many companies, Raiz has had its challenges over the past eight months. We have had to contend with the reality that many young Australians, who comprise the core of our customer base, are being hard hit by this recession. The economy was deliberately shut down for several months, with the cost being borne by the ones losing their jobs or from businesses closing.
During the period, our funds under management (FUM) and active customers rose globally, with FUM in Australia passing $500 million – an important milestone – and the average balance of our customers growing. Both achievements are a tribute to our focus on listening to our customers and improving customer financial wellbeing in response to your feedback, with new features such as updated performance charts being launched.
It also demonstrates the quality of our core products, service offering and increasing engagement in our new products and services such as the Sapphire portfolio, Offsetters and Raiz Energy.
The $500 million FUM milestone was matched by another first for Raiz when we began announcing Active customer numbers for our Indonesian and Malaysians operations. It was an exciting development launching in these countries, allowing us to help customers abroad achieve their financial goals. The progress we are achieving in Indonesia and Malaysia supports our long-term strategy to expand into Southeast Asia.
To assist with this global growth, I will now become MD/Group CEO and Brendan Malone, who is Group COO, will also become CEO of the Australian business. There could be no better choice than Brendan.
Raiz remains on an upward trajectory, and the growth in Active customers and FUM positions us to deliver a solid result. This is also validated by many of our institutional shareholders, such as the Thorney Investment Group, that have also noticed our achievements and increased their holding in Raiz Invest over the past few months.
These milestones have not come easily. We now have a great global team, and we have had to tighten our belts and adjust how we work together because of COVID. But in all of this we have never deviated from a philosophy that puts you, the customer, at the centre of our business model.
Please, stay safe.
– George Lucas, Raiz Group CEO/Managing Director
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