To prove the point, the company says an 8pc rise in average revenue per user to $74.29 is strong evidence these strategies are paying off.
Raiz says that as the customer base continues to expand, engagement is clearly reaching more deeply across its core product range.
The number of Raiz Plus portfolios – a product that gives customers more control of their individual investments – jumped 49pc while its Kids portfolios grew 42pc and the company’s Superannuation offering saw a 26pc uptick in customers.
The increased client numbers also boosted funds under management in each sector. The total value of the Super product increased 33pc to $331.1m while the Raiz Plus pot skyrocketed by 89pc to $246.2m.
More impressively, the total value of the Kids investment portfolios more than doubled, up 103pc to $60.6m, suggesting a strong interest from younger investors to create long-term wealth.
One of Raiz’s key moves in the past six months was to strike up an alliance with global asset manager State Street Global Advisors to help raise its brand awareness and develop new white label products for future strategic partners and financial groups.
The deal has also improved new product development particularly in the retirement income space. As a broader ambition, both parties see the Raiz platform as a smart way to improve financial literacy among its less experienced customers.
The company, meanwhile, has been busy developing new platforms to grow user options. Raiz Plus fund clients can choose from 150 individual share and ETF options to personalise their investments, while Super customers can now also personalise their retirement portfolios.
Raiz has also been growing its rewards business model – a way of transferring retail loyalty points into investable cash – with cashback and investment options available through 57 separate merchants.
In line with the company’s earlier decision to minimise ongoing losses, Raiz has completed its exit from its South East Asian operations after writing a final cheque of $672,000 to the liquidator of Raiz Malaysia. The company has now drawn a line under its turbulent overseas adventures.
With a strengthened balance sheet, a growing customer base and a pipeline of innovative financial solutions, Raiz appears well-positioned to capitalise on its highly scalable technology and cement a leadership spot in the digital wealth management sector.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
