Indonesian millennials find it challenging to save money due to high lifestyle costs, but Australian Fintech Raiz Invest hopes to make it easy for them.
Raiz Invest has a mobile app called Raiz that automatically takes spare change from its users’ spending and invest it in mutual funds. It would set aside small amounts, less than 5,000 Indonesian Rupiah (IDR) from each transaction.
«We want to help increase Indonesia’s financial literacy and also teach the millennials to save and invest their money without changing their lifestyles,» said Raiz Invest Australia CEO George Lucas, who was quoted in «Jakarta Post».
Making It Easy
«So, if a user bought a cup of coffee for IDR 41,000, (the expense would be IDR 45,000) and we would take the IDR 4,000 and save it in the app,» said Raiz Invest Indonesia chief marketing officer Fahmi Arya.
The company, which was founded in 2016, designed the app such that it would automatically buy the user a mutual fund product when the money in their Raiz account reached IDR 10,000.
To make it seamless for the user to invest, the app would automatically take money from its users’ bank accounts and e-wallets that were linked to the app.
Growing Interest To Invest
In the last few years, the Indonesian Central Securities Depository (KSEI) has recorded a significant increase in the number of investors in the country, as shown in the issuance of Single Investor Identification (SID) numbers.
Last year, the depository saw a 44 percent rise in SIDs to 1.62 million, of which 988,946 were mutual fund SIDs.
