Raiz Invest grew funds under management by 20.2 per cent to $2.4 billion in the September quarter, adding $69 million in net customer inflows, up 27.8 per cent on the previous quarter, as a new generation of investors embraced its digital wealth platform.
Raiz Invest, which pioneered Australia's round-up investing model by letting customers turn loose change from everyday purchases into investment portfolios, grew its active customer base 5.6 per cent year-on-year to 354,202. Average account balances climbed 13.8 per cent over the past year to $6,776, suggesting customers are building bigger investment portfolios rather than parking a few dollars of spare change.
Growth was reported across several of the platform’s offerings. Raiz Kids portfolios jumped almost 25 per cent over the past year to 73,957, with money invested in them up 42.7 per cent to $132.3 million. The company said the figures point to growing enthusiasm among parents and grandparents keen to give the next generation an early financial head start. Its superannuation offering now manages more than half a billion dollars, Plus portfolios have attracted $441.3 million, and Jars goal-based portfolios climbed 67.2 per cent year-on-year to 46,729. The entry-level Lite offering grew 17.7 per cent in three months to more than 10,000 portfolios. Annualised revenue per user climbed 2.9 per cent to $86.69.
Chief executive Craig Keary said: "The underlying Raiz business remains solid, with a significant retail customer base skewing towards the younger investor demographic, and a steady stream of recurring net flows onto the platform."
The growth comes as Raiz pushes ahead with an August-launched overhaul aimed at winning more customers, tightening operations and broadening its wealth management ambitions. The program includes plans to harness artificial intelligence for customer engagement, refresh the company's market positioning and explore potential strategic acquisitions. The company finished September holding $15 million in cash, up 3.4 per cent from the end of June, despite one-off costs of $500,000 linked to the transformation.
The overhaul has also uncovered historical tax compliance issues, with the board and management pressing ahead with an external review and ongoing discussions with regulators. The company said it will keep the market updated as the process unfolds. Looking ahead, Raiz is progressing plans to introduce access to US-listed shares and exchange-traded funds, with direct ASX share trading earmarked to follow.
Analysis
Why This Matters
- The results show how younger Australians are entering investing through low-balance products, with average account balances up 13.8 per cent to $6,776 and children's portfolios growing sharply.
- Raiz's August transformation plan, covering AI-driven engagement, a market positioning refresh and possible acquisitions, could broaden its revenue base, while the tax compliance review adds regulatory uncertainty.
- Planned access to US-listed shares, ETFs and direct ASX trading would widen the platform's offering and could drive further inflows.
Background
Raiz Invest is an Australian fintech that built its business on the round-up investing model, allowing customers to invest spare change from everyday purchases into portfolios. It has since expanded into superannuation, children's portfolios, goal-based Jars accounts and higher-flexibility Plus portfolios. The company launched a transformation program in August aimed at winning more customers, tightening operations and broadening its wealth management ambitions.
What to Watch
- Findings of the external review into historical tax compliance issues and any regulatory response.
- Whether the transformation plan's AI initiatives and any acquisitions translate into stronger customer growth and recurring inflows.
- Progress on introducing US-listed shares, ETFs and direct ASX trading, and the effect on funds under management.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedRaiz funds under management grew 20.2 per cent to $2.4 billion in the September quarter.The Age - Latest News: “growing funds under management by 20.2 per cent to $2.4 billion in the September quarter”
- SupportedRaiz added $69 million in net customer inflows, up 27.8 per cent on the previous quarter.The Age - Latest News: “The company added $69 million in net customer inflows during the three months to September 30, a 27.8 per cent jump on the previous quarter”
- SupportedA new generation of investors embraced Raiz’s digital wealth platform.The Age - Latest News: “as a new generation of investors embraced its digital wealth platform”
- SupportedAverage account balances rose 13.8 per cent over the past year to $6,776.The Age - Latest News: “The average Raiz account balance has climbed 13.8 per cent over the past year to $6776”
- SupportedRaiz’s active customer base grew 5.6 per cent year-on-year to 354,202.The Age - Latest News: “while its active customer base grew 5.6 per cent year-on-year to 354,202”
- SupportedRaiz pioneered Australia’s round-up investing model, letting customers invest loose change from everyday purchases.The Age - Latest News: “pioneered Australia’s round-up investing model, allowing customers to turn loose change from everyday purchases into steadily growing investment portfolios.”
- SupportedRaiz Kids portfolios grew almost 25 per cent over the past year to 73,957.The Age - Latest News: “Raiz Invest’s Kids portfolios jumped almost 25 per cent over the past year to 73,957.”
- SupportedMoney invested in Raiz Kids portfolios rose 42.7 per cent to $132.3 million.The Age - Latest News: “the money invested in them surged 42.7 per cent to $132.3 million.”
- SupportedThe company said the Kids figures point to growing enthusiasm among parents and grandparents seeking an early financial head start for the next generation.The Age - Latest News: “The company says these figures point to growing enthusiasm among parents and grandparents keen to give the next generation an early financial head start.”
- SupportedCEO Craig Keary said: “The underlying Raiz business remains solid, with a significant retail customer base skewing towards the younger investor demographic, and a steady stream of recurring net flows onto the platform.”The Age - Latest News: “Raiz Invest chief executive officer Craig Keary said: “The underlying Raiz business remains solid, with a significant retail customer base skewing towards the younger investor demographic, and a steady stream of recurring net flows onto the platform.””
- SupportedRaiz is pursuing an August-launched overhaul aimed at winning more customers, tightening operations and broadening its wealth management ambitions.The Age - Latest News: “pushes ahead with an August-launched overhaul aimed at winning more customers, tightening operations and broadening its wealth management ambitions.”
- SupportedThe overhaul uncovered historical tax compliance issues, and the board and management are pursuing an external review and ongoing discussions with regulators.The Age - Latest News: “the overhaul has also uncovered historical tax compliance issues, with the board and management pressing ahead with an external review and ongoing discussions with regulators.”