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Acorns Australia hits $100m AUM mark

The micro-investing app has grown in popularity over a year after launching.

a large building with a body of water in the front with Sydney Opera House in the background

Robo-advice platform Acorns has seen its Australian company grow to $100m (£61.3m) in assets under management as digital wealth services continue to expand across the world.

The app started in the US three years ago and launched in Australia in February 2016. Since then its Australian division has gained 300,000 users, the Sydney Morning Heraldreported.

The micro-investing app works by rounding up purchases made by users and investing the change in ETF portfolios.

The service does not operate in the UK, but there is a similar micro-investing app called Moneybox.

These types of apps are often geared towards younger users but one of the criticisms is that younger generations don’t have the money needed to sustain these business models.

User data from Acorns Australia also shows that most of its users are under 34, the newspaper reported. About 37 per cent of its clients make less than $50,000 (£30,664) while 43 per cent make $50,000 (£30,664) to $99,000 (£60,718).

In the US the firm has $257m (£198m) in assets under management and over 1.1m accounts. However, the average size of accounts in the US is just $230 (£177). In comparison its rivals Betterment and Wealthfront have $10bn and  $6.7bn in AUM, respectively. 

This article first appeared on www.roboadvicenews.com

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