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RZI - Raiz Invest

Discussion in 'Stocks Q-Z' started by System, May 14, 2018.

  1. System

    System Administrator

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    Raiz provides financial services through its mobile first micro-investing platform which offers its customers an easy way to regularly invest either small or large amounts of money using the Raiz application or through the Raiz website.

    Through the Raiz platform, Raiz customers are able to automatically invest, through their Raiz Investment Account, into a chosen diversified portfolio of exchange traded funds (ETFs) on the ASX. The minimum account balance required before a Raiz customer can commence investing on the Raiz platform is just $5. There are four different ways in which customers can make contributions to their account: they may make a lump sum deposit; activate "round-ups" (being the automatic investing of a customer's virtual 'spare change'); setup a regular savings plan; or through Raiz Rewards (formerly, Found Money).

    Since its launch in Australia in February 2016, Raiz has amassed over 440,000 customer sign-ups, 155,000 active monthly customers and $170 million in funds under management.

    It is anticipated that RZI will list on the ASX during June 2018.

    https://raizinvest.com.au
     
  2. Navtej

    Navtej

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    Opinions on success of this stock ?

    I started using this app during university to save a little money; it was nice to interact with however never used the rewards aspect.
     
  3. Wysiwyg

    Wysiwyg Everyone wants money

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    I thought the Acorns round up was a great idea & joined out of curiosity. For me the account is doing better than I expected as it is incredible what little amounts over time can do plus ETF growth plus dividends reinvested. Set and forget and it is better than any retail outlet thief being that it works for you.

    Regarding the capital raiz-ing, not for me:

     
  4. SailaSaila

    SailaSaila

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    A large sell off from some Instos at the IPO. RZI is now gaining traction. A good source indicates $2.56 by end of the year. I'm still currently buying up
     
  5. McLovin

    McLovin

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    I got an IM for the IPO for this. The valuation was absolutely ridiculous. I almost fell off my chair. Fintech valuations generally are stupid at the moment, because it's the flavour of the month. Late last year I got an IM for a seed round fintech that had a crazy valuation considering it was still just a concept (and not a very original one either!). I actually think the RZI product is a great idea but hardly a world beater, the big issue they have is how expensive will customer acquisition become in the future? Just look at how sales expenses are chasing revenue every half. If this is successful then banks will copy it (as a product it seems like something that would sit right in, say, ING Direct's wheelhouse) and they already own the customers so their cost of acquisition is zero...or almost zero. So then the question is what is the cost of replicating this product? A: A lot less than $60m.

    The problem with a lot of these fintechs is they're modest step-up improvements in what's currently available, but they're not revolutionary – or in overused tech parlance "disruptive" – although they're being valued as though they are.
     
    Last edited: Jul 18, 2018
    luutzu, VSntchr and JTLP like this.
  6. JTLP

    JTLP

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    I also remember reading that this is pretty useless for people putting low values in, as the fees alone absolute crush your investment.
     
  7. luutzu

    luutzu

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    So it's like a money-jar/piggybank for your spare change. Only difference is someone else is "managing" it and charges you a fee. That and unlike that piggy in the corner somewhere, when you come to crack it open there might be nothing there.

    Though I think there's some merit to collecting spare change into a fund to invest... the real issue will be the management fees and general admin making it worthwhile for the savers/investors.
     
  8. McLovin

    McLovin

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    Which is why I reckon a product like this will work much better inside a bank or any insto that already has a relationship with the user. The marginal cost to provide this service wouldn't be that high, but RZI has to cover all its fixed costs as well which means it needs serious scale to be price competitive. The returns post expenses just aren't worth the effort to sign up. I wonder what their churn is?
     
  9. luutzu

    luutzu

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    I think banks are already doing it aren't they? They just use the deposits, lend out, leverage up etc., and have the gov't guarantee the depositors if it all goes south.

    So RZI should just get a banking licence, pay depositors a higher interest rates than the banks. Don't do anything too stupid with the float... But then they can't make money no matter what happens... risk and some investment ability are for suckers I supposed.
     

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