If you’re like me and are extremely money conscious, then I’m sure microinvesting has at the very least got your interest in the past. If you’re not sure what microinvesting is, have a read of my explanation here.
Sure, you can research which app or company you want to invest your money with, but the question of who will make you the most isn’t ever going to be obvious. Now, obviously the company with the most funds under their control will be making the most amount of profit for both you and themselves, so beating out the competition is very important. For this article, I’ll be focusing on how Raiz and Spaceship make their brands the most appealing it can possibly be.
The biggest decider for anybody looking to invest their money in any form of investment is to look at the returns. But in this case, its not as clear cut. With complicated and not publically available figures, it is difficult to find out who is performing better. From my own research, I found Spaceship outperformed Raiz, with a 36% return on investments in the calendar year versus Raiz’s return in the low 20%’s. But the bottom line is, new consumers don’t know this, so they’re going to base their decision on who to go with based solely off the information in front of them. Remember, whoever attracts the most new customers will ultimately make you more money (in theory).
Another big appeal though is providing a product relevant to the consumer. Enter the new Raiz Bundll Mastercard. Bundll is another revolutionary brand who aims to bring a buy now pay later system to every purchase you make with your credit card. Raiz have teamed up with them to provide a new way for you to purchase your every day needs. As I understand it, you will tap your card as you already do, pay within 2 weeks via your smartphone or on the web, and if you are shopping at an eligible Raiz Rewards partner, you will receive the amount reinvested into your account (this feature has been long rumored and not yet confirmed, however it makes a lot of sense). This will also open the door to expansion of the Raiz Rewards scheme, as businesses would see it far more appealing to partner with them.
On top of this, an ever changing product to be relevant with societies changes also helps to keep people interested and happy. That’s why you can understand my excitement when they announced a 7th portfolio on the way, expected to launch sometime in February, that has a heavy investment in Bitcoin. Some of you may think this is the best thing ever, others may roll their eyes, but the fact is, whether or not Bitcoin rises in the next week, month or year is highly unknown, but it is very likely to rise in the long term as we shift further away from physical cash.
Raiz have also announced they are closing in on finally opening up to the Malaysian market, providing a similar product as what is already available in Australia. Obviously Malaysia isn’t a terribly rich country for the most part, but their economy is growing significantly and shifting more towards being a fully developed country of nearly 32 million people. International growth would greatly increase the buying power they would have and reduce the price they buy at even further.
Finally, they have also announced an overhaul to the carbon offset program. For those who don’t know, the carbon offset program currently monitors your spending if you have been using the round up feature for more than 3 months. From this, it estimates your carbon footprint and deducts that amount of money from your account in order to fund projects such as planting trees and renewable energy. It is not yet fully known how they plan to change this, however we would likely see a project that is more interactive and not just accessible to those using round ups.
So will all this be enough for Raiz to overtake Spaceship? Only time will tell, but all these changes are certainly a step in the right direction for a company who are already doing things right. Behind the scenes, both of the big Fintech companies (microinvesting) are lobbying the government to place less restrictions on what they are allowed to do. Whilst this is complicated and for the most part boring enough to put you to sleep, progress is being made, which is an excellent sign.
On top of that, microinvesting as a whole is in a good place this year; markets are expected to do quite well in the first quarter of the year and possibly through to the end of financial year. International political tension with the U.S., Iran and China certainly isn’t making investors sit comfortably, but because you and I microinvest our savings, there’s a whole team of people behind our money to make sure it will feel as little effect as possible if things escalate overseas. Now is a great time to be doubling down on you Raiz account. Whether or not they beat Spaceship this year I am not sure, but at the very least they will start to close the gap.