New Raiz fintech products boost quarterly revenue and user numbers

Raiz Invest has kept the pedal to the metal with another strong three-month performance, increasing its revenue 5.1 per cent to $5.95 million, which is more than twice the growth rate of the September quarter and up 13.5 per cent year-on-year.

Raiz is an innovative micro-investor platform and investment fund offering app-based technology that allows customers to round up any card-based purchase to the nearest $1, $2 or $3.

Raiz Rewards, a new product offering from micro-investment platform Raiz Invest, helped quarterly revenue climb 5.1 per cent for the quarter to $5.95m and added 7395 new users, taking total user numbers to more than 317,000.

The rounded-up portion is tipped into a personalised fund that Raiz then invests in the stock market.

Customer numbers also continued to accelerate at twice the September quarterly rate, surging by a further 7395 new and active users and taking its current tally to 317,995. A further 4224 new customers have signed since the end of the last quarter.

New products Raiz Jars and Raiz Rewards have particularly contributed to the recent uplift in the company’s profile and user appeal.

‘The Finder Awards for Investment Product Innovation was outstanding.’

Raiz Invest managing director and chief executive officer Brendan Malone

Raiz Jars is an add-on feature that enables clients to manage multiple investment goals within one account. It has seen more than 5350 portfolios created since it was launched three weeks ago.

Raiz Rewards is an Australian-first platform to convert enlisted retailer rewards programs into cash. It boomed 28 per cent quarter-on-quarter since its introduction in July, collecting and investing more than $500,000 on behalf of its customers.

Management says the accelerating growth trend has also been driven by a major improvement in its artificial intelligence-driven marketing strategies, built around a curated system to pinpoint target customers with relevant messages at optimal times.

Just as pleasingly for the company, the average revenue per user has cracked $75 per year at $75.68, up 6.4 per cent year-on-year. The trend reflects a marketing push by the company to cross-sell higher revenue products such as Raiz Plus, which enables a customer to have more investment input.

Raiz Plus was offered for the first time in July as a portfolio option for the company’s superannuation customers. It increased its funds under management by a whopping 22.7 per cent growth to $246.2m.

Raiz says its customers are increasingly favouring long-term wealth strategies over transactional savings. The shift is evident in rising account balances, which grew by 22.1 per cent year-on-year to an average of $5054 per customer.

The strong growth across all key areas coupled with a strong stock market performance also boosted total funds under management to more than $1.6 billion, up a massive 32.4 per cent year-on-year and approaching $1.67b as January draws to a close.

Raiz Invest managing director and chief executive officer Brendan Malone said: “Key initiatives driving these positive results are our enhanced marketing systems and processes, a changing product mix focused on higher revenue products and increased customer retention and engagement, which is a key strength and point of difference that Raiz continues to deliver.”

Raiz has a consistently high-ranking financial sector spot on Apple’s Australian app store, suggesting the company’s offering is well-liked by users. In what management described as an outstanding result and perhaps an even bigger feather in its cap though, the company recently picked up a Finder Awards gong for investment product innovation.

Raiz Super also nailed SuperRatings’ top spot in the balanced super funds category for the 2024 performance of Raiz Super’s moderately aggressive investment option.

With strong momentum and a scalable technology platform, Raiz appears poised to continue its growth trajectory and to cement itself as a leading part of Australia’s fintech landscape

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