The Australian fintech building a media play

Raiz, the app using small change to invest, is finally leveraging the habits of its almost 1 million sign ups to create a fine-tuned media play.

The app, originally called Acorn until local players bought it from the US parent, is offering a B2B Facebook/Instagram marketing service for brands by using its rich transactional data to run highly targeted campaigns.

Jessica Rayner, Raiz Invest’s head of partnerships, says people have been urging the company to use the data collected when app users purchase and get a credit to their investment accounts.

The move is a departure from the key user proposition of rounding up purchases and adding the small change to an investment portfolio managed by professionals.

For example, when you buy a coffee in the morning, the app will round up $3.50 to $4 and put the 50 cents into the investment account with exposure to the share market.

A rewards program gathers data on purchases. “Essentially, it’s kind of like a cash back,” says Rayner.

“For example, if you shop with the iconic, we use the commission to purchase shares and that gets invested back into the Raiz account.”

The company has more than 250 partners providing a commission, 70% of which gets reinvested into customer Raiz accounts.

And the resulting customer data — until now unused and lying idle — can be used by brands to finely target potential customers.

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Source: The Australian fintech building a media play – AdNews