Raiz Invest Aims for Millennials with “Easy Investment” Strategy
Partners with CIMB as a payment option
Corry Anestia - 27 August 2019
Few months after being introduced, PT Raiz Invest Indonesia officially launched their micro-investment service in Indonesia. A web-based platform to tighten its position in the market, including a partnership with PT CIMB Niaga Tbk as a payment option.
Raiz Invest‘s CEO, Melinda Wiria said, their company always aims for millennials, considering the great potential, one-third of the total population or equivalent to 80 million people.
“Millennials have barriers to invest. Aside from the perplexing process, it costs much. We’re here to assist for easy investment and fast track. We can invest without changing lifestyle.”
Currently, Raiz Invest offers three services, Recurring Investment or investment using auto-debit installment, Lump Sum or direct investment at a certain value, and Round-up or investment collected from the transaction change.
In terms of Round-up, every transaction amount will be rounded up to Rp10,000 and collected as an investment, directed to Raiz app.
Raiz Invest’s CMO Fahmi Arya said the collaboration wouldn’t stop at CIMB Niaga. He currently exploring partnerships with two e-money providers.
“Currently the cross-bank transfer still run conventionally or cost an additional fee. Using CIMB Niaga, the small-amount transaction, for example, Rp10,000 won’t be charged. This is what we meant by online investment should be built within a closed ecosystem,” Arya said.
In addition, he also said the company plans to develop a community portal to connect investors with related parties in the investment industry. It’s to accelerate financial inclusion for investors and newcomers.
Raiz Invest, previously Acorns, is an Australian-based fintech company. Post IPO last year, they expand the business to Indonesia. The company aims for 40 thousand users by the end of this year.
Fintech should support first-time investors
Head of Indonesian Investment Advisory Association (IAA), Ari Adil said the fintech era is very important for the rise of some first-time investors in Indonesia. They’re said to be a part of Indonesian Mutual Fund Dealer Association (MFDA).
“In Indonesia, the financial index is the lowest. It’s different with Banking’s high index. It explains that investment literacy rate is very low in Indonesia. Therefore, fintech is very important for user acquisition,” he said on the same occasion.
OJK’s Head of Investment Management Policies Development, Solihin Betas also mentioned the investor rate is increasing since the rise of online investment for the past few years.
“Previously [before online investment], we aim for 5 million investors but failed. Nowadays, the number is increasing, at least 300 thousand new investors appear every day,” he said.
Betas added, to date Indonesian central securities depository (CSD) listed 1,8 million investors in Indonesia. Based on the current achievement, the 2 million-investors target should be achieved by the end of this year.
Original article is in Indonesian, translated by Kristin Siagian