State Street Global, the asset management arm of global financial services firm State Street Corporation, has taken a strategic stake in Australian fintech platform Raiz Investment Limited for an undisclosed amount.
Under the equity investment agreement, State Street Global will acquire approximately 5% of Raiz’s share capital through a placement, according to the announcement.
Launched in 2016, Raiz’s helps customers save and invest. It pioneered the ‘Round-Up’ concept in Australia – where everyday purchases are rounded-up to the next dollar, with the difference invested into a Raiz Invest account.
Users of the platform can invest in up to 75 of the most recognised stocks on the ASX, ETFs, Bitcoin, and the Raiz Residential Property Fund, from as little as $5.
State Street Global Advisors, on the other hand, services financial clients by creating and managing investment strategies for governments, corporations, endowments, non-profit foundations, corporate treasurers and CFOs, and other intermediaries around the world.
With State Street Global coming in as Raiz’s investor, the fintech platform’s customers will have access to a broader array of financial literacy content and investment education tools.
In addition, the strategic relationship will help Australian retail investors with micro-investments primarily in exchange-traded funds (ETF) and model portfolios.
“This strategic investment reinforces our strategy to join forces with wealth firms who share our commitment to helping investors globally manage their investments and savings for retirement,” said Yie-Hsin Hung, president and CEO of State Street Global Advisors.
State Street Corporation, State Street Global’s parent firm, opened its first offices in Australia and Singapore in 1986 and 1997, respectively.
