Raiz grows global customer and revenue base, relaunches Raiz Kids and wins another industry award
Raiz Invest, a multi-award-winning, micro-investing and fintech platform, continues on its growth trajectory in Australia and Southeast Asia.
Raiz Managing Director/Group CEO George Lucas said, “We continued to implement our strategy of growth in a measured way in the June 2022 quarter. This approach has Raiz well placed to leverage off the inevitable bounce in market sentiment once investor confidence improves. Considering the uncertainties buffeting financial markets, we are pleased our active global customer base grew in the latest quarter.
Strong YOY growth customer base, FUM and investment account metrics
There has been a raft of negative macro-economic news and geopolitical events that continued to adversely impact sentiment in global financial markets in the June quarter. The increased volatility across domestic and offshore financial markets, cost of living increases and increased mortgage repayments eroded available investible funds.
Raiz’s Australian-based FUM was $940 million at the end of Q4 FY22, up 17.6% on a YOY basis. The Australian FUM slipped by 7.7% on a quarter-on-quarter (QOQ) basis to 30 June. The QOQ FUM decline was much less severe than the drop reported by the Australian S&P/ASX 200 index, a key market benchmark which fell by a substantial 12.4% in the June 2022 quarter.
Within the headline FUM number of $940 million, Superannuation FUM continued to report impressive YOY growth, with the end-Q4 FY22 figure of $186.1 million up 74.6% (including Superestate) on a year ago. Superannuation FUM retreated by 3.3% QOQ to 30 June 2022; an excellent result against a large negative market movement.
Average balances per customer were $2,582 in Raiz’s Q4 FY22, up 0.9% YOY, but down 11.4% on the prior period figure. Total Australian active customers numbered 289,500 at the end of Q4 FY22, up 6.1% YOY.
Q4 FY22 Annual Recurring Revenue (run rate) of $14.7 million was 21.5% higher YOY (and up 0.2% QOQ). The QOQ gain came on the back of increased maintenance fees.
Group CEO Brendan Malone added, “The team continue to focus on what we do best, customer service. It is their feedback that underpins our new products and features, allowing us to grow our customer base. Although some new features are minor and go unnoticed by most customers, they improve the UX for many. We expect to be delivering Raiz Property Fund, a REIT of residential properties, in the September quarter. We are focusing on our cost structure across our operating entities to ensure we continue to move towards profitability in a controlled and measured manner.
Raiz continues expanding in its target Southeast Asia markets
Raiz expanded its presence in Southeast Asia over the Q4 FY22 period with active customers up 8.3%, despite heightened investor nervousness and the consensus view that central banks intent on inflation control will continue tightening monetary policy.
Active Customers in Indonesia rose by 114.9% YOY and 9.8% QOQ to 253,420. Active Customers in Malaysia rose by 66.3% YOY and 5.1% QOQ to 109,782. The Company’s plans to grow its Southeast Asian footprint via a move into Thailand continues to be delayed as economic uncertainties have necessitated the need to find a new joint venture partner.
During the quarter Raiz Indonesia and Raiz Malaysia have expanded their Raiz Rewards operations, an initiative that has been well received by customers. What is pleasing about the positive customer response in Indonesia and Malaysia is how we can adapt service offerings developed in Australia for these markets.
Successful relaunch of Raiz Kids investment product
Raiz also relaunched its Raiz Kids product in late April after a period of beta testing with a select group of customers. The product is a simple way for adults to save and invest for their children and/or dependents under the age of 18, giving them the ability to control the access their children have to the account. If required, adults can also create multiple Raiz Kids accounts, each with different settings and permissions.
Raiz wins another industry award
In June 2022, Raiz won the Excellence in Wealth Management (including Personal Financial Management and Robo) Award at the Finnies. This award recognises Fintechs providing innovative, cost-effective and high-quality Investment and Wealth/Asset Management solutions – be they direct to the consumer or to the financial advice and wealth management industry.
