ASX-listed fintech firm Raiz Invest has announced its expansion into Southeast Asia by launching into Indonesia.
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 local news outlet Jakarta Post.
We want to help increase Indonesia's financial literacy and also teach the millennials to save and invest their money without changing their lifestyles"
Raiz Invest Indonesia chief marketing officer Fahmi Arya said the app would set aside small amounts, less than Rp 5,000 ($0.35), from each transaction.
"So, if a user bought a cup of coffee for Rp 41,000, [the expense would be Rp 45,000 and] we would take the Rp 4,000 and save it in the app," he said, adding that the app would automatically buy the user a mutual fund product when the money in their Raiz account reached Rp 10,000.
He added that the app would automatically take money from its users' bank accounts and e-wallets that were linked to the app.
Lucas said he's very excited about the expansion into Indonesia.
"We believe that, just like in Australia, Raiz will be a game changer on how people invest. Raiz Invest will be the innovative solution for anyone who wants to start investing, but has never really taken the first step," Mr Lucas said.
"As outlined in the prospectus last year, our growth strategy includes expansion in to Southeast Asia and Raiz Indonesia is the start with more countries to follow."
Raiz Invest secured its mutual fund securities agent permit from the Financial Services Authority (OJK) in December and plans to officially launch the app in the third quarter of this year. The firm is targeting to attract 400,000 users, all first-time investors below the age of 35, by 2020.