Ann: Funds Under Management & Active Customers - December 2018, page-18

As a product - its actually a great deal for customers when investing small amounts.

As a business, its however a different story. $1.25 monthly fee doesn't even cover basic operating costs on a per user basis. Australia's cost base in financial services is ridiculous - just look at the brokerage rates we pay here vs the US (even at insto level).

Raiz has to either become a serious investment product (I don't think thats going to happen) or find other ways to monetise the massive user base it has built - rewards isn't going to cut it on its own.

Acorns in the US recently raised $105m and did a deal with CNBC - one needs huge amounts of money when looking to monetise Millenials. It is a very long game and best understood by VC money.

I suspect that RZI couldn't raise money from VCs and hence listed as a last resort! Listed markets just don't offer the kind of capital which RZI needs. Add the ridiculous payout management got from the IPO and IMHO - they have made their money and the holders are left bearing all the risk!