Aussie millennials have been signing up to investing apps.
More than 100,000 people have signed up to Australian investing platform Spaceship since it launched its first service, Spaceship Super, in 2017.
Of that number, 40,000 joined since the pandemic hit in March, which signals the way Aussie millennials are using this period of uncertainty as an opportunity to grow their wealth.
Spaceship is backed by AirTree Ventures – which has funded the likes of Canva and Linktree – as well as Mike and Annie Cannon-Brookes’ private investment firm, Grok Ventures.
It also has an investing app, Spaceship Voyager, which allows you to invest in individual stocks among the largest companies in the world.
Most of Spaceship’s customers are under 45. It reached the 100,000 user mark in October as the pandemic spurred this age group to take a closer look at their finances.
“It is well documented that younger Australians have been hardest hit by COVID-19 in terms of job losses and reduced working hours, but they have responded by being more committed, focused and financially savvy than they’re often given credit for,” Spaceship CEO Andrew Moore said in a statement.
“Spaceship’s research finds that the majority of millennial Australians in their 20s save at least 10 – 20 per cent of their income, and this seems to have been amplified in recent months.”
Spaceship reported funds under management (including both its investment and superannuation services) of more than $530 million, an increase of $110 million since 31 July this year.
“A large proportion of our funds under management has come from millennials who have responded positively to Spaceship’s simple and engaging investment approach and have taken the opportunity to invest in some of the global companies they use every day,” Moore added.
“Younger Australians have traditionally been disconnected from investing so there is untapped demand for investment products that align to their values, are affordable and are easy to use.”
Fellow investing platform Raiz has also seen an increase across its user base.
The company, which was formerly known as Acorns, launched in Australia in 2016 and has since expanded to Indonesia and Malaysia. With Raiz, you can invest in ETFs and bitcoin.
One popular feature on the app is ’roundups’, where it invests the ‘spare change’ from your purchases by rounding up to the nearest dollar.
Raiz has 298,866 active customers globally as of October 31, compared to 288,146 at the end of September.
In Australia, its active users increased slightly from 227,645 in September to 229,804 by October 31.
In Indonesia, the number of active customers grew 10.9 per cent between September and October to 48,448. Malaysia, on the other hand, experienced a 22.5 per cent increase to 20,614 active customers.
At the end of October, Raiz had $525.59 million in funds under management (FUM), compared to $500.6 million in September.
“In Australia, FUM grew strongly, up 5 per cent to $525.6 million, with both retail and superannuation showing gains of 5.4 per cent and 2.6 per cent, respectively,” Raiz Invest CEO George Lucas said in a statement.
“Considering Victoria only emerged from its hard lockdown late in the month, as well as a global stock market sell off in the last part of the month, it bodes well for the last two months of the year and 2021.”
This article originally appeared on Business Insider Australia.