Saving money isn’t some new trend…
It’s something we’re told to do at an early age.
I’m here to tell you there is a faster, easier, and more efficient way to save.
You see, today’s trend is all about automating the savings process with powerful, customizable, money savings apps—— like the two I’ll be comparing for you today.
One of them happens to be our biggest startup investment yet.
I’ve said it before and will say it again…
Timing is crucial, especially in the startup investing world.
And with so many people feeling the effects of our current economic state…
I truly believe the two startups I’m about to share with you provide the kind of solution that could help people get ahead and keep the economy moving forward.
They make it easy to save more, invest, and budget your expenses. The startups behind these apps are becoming wildly successful, with IPOs and acquisitions persisting through the pandemic.
While there are many great apps out there, we will be focusing on the best personal savings and investing apps.
These are of particular interest because of the huge market of people struggling to save. Apps are an excellent way to reach them, simplifying and gamifying financial practices, making them a bit more exciting and accessible.
FinTech is a hot sector right now so I’d like to show you the best successes and investment opportunities out there.
Meet the Apps
Today, we will be investigating two very similar applications.
The first is a micro-investing platform called Acorns.
While Acorns has already been wildly successful, this new app is in its early stages. We believe that this new app has incredible potential and is worth checking out.
The reason we chose these two apps is that they target the same market but have very different uses and benefits. Their similarities, differences, and trajectories make them a perfect match for this comparison.
Without a doubt, these are the two hottest saving and investing apps on the market today.
Micro-Investing App Acorns
Acorns makes saving simple. Virtually all investments require significant research, paperwork, or a dedicated advisor to get started. And the less financially-savvy often don’t invest for this reason.
Investing can be intimidating and confusing, leaving a large chunk of the market unserved.
With Acorns, users simply download the app onto their smartphone, enter some basic info, click through a few preferences, and voila, they are investing.
What’s more, investments are made in a special way. When a user makes a purchase, the cost is rounded up to the dollar, and the difference is invested into a portfolio of their choosing.
So, if you buy a pizza for $10.50, Acorns will automatically invest .50 cents for you. This is known as micro-investing and it is one of the biggest breakthroughs in consumer-oriented FinTech. It takes the work out of the investment process, breaking down the mental barrier non-investors have.
Unsurprisingly, Acorns has gone on to be a massive success.
As a company, Acorns has earned $207 million in funding. As of 2019, the platform has over 4.5 million users and over $1.2 billion in assets under management. Lastly, Acorns has landed several lucrative partnerships with Nike, Apple, Walmart, Airbnb, Macy’s, Lyft, and more.
New Short-Term Savings App
Next up we have this new app that focuses on savings. I’m not talking about a regular savings account or anything like that, this is an entirely new way to save.
Here’s the problem — young people are saving less and less. On top of that, their priorities are different, preferring to save for short-term goals like travel, concerts, and gadgets, rather than saving to buy a home or retire. Those same customers overwhelmingly avoid traditional financial institutions.
For many, legacy financial institutions are just too complicated and intimidating. And, they just aren’t fun enough.
Here’s the solution — a user can create an account in minutes, define a savings goal, and use their checking account to fund that goal. When they make purchases, they save.
This works via a percentage-based system rather than a round-up system. Users have total control over their savings. They can save 5%, 15%, 20% of what they spend, whatever they feel comfortable with. They decide what they want to do and how quickly they want to do it.
Once the goal is met, the sum isn’t invested, it’s available to spend. As a matter of fact, it’s available to spend even before the goal is met — money isn’t locked down, it’s yours, and you can take it whenever you want.
If you haven’t heard yet…we just made our biggest investment yet, into a FinTech startup with a percentage-based cashback savings app. Click here to learn how you can invest right now.
Then, users are encouraged to take their funds right over to the in-app marketplace where they can spend it and get cash-back.
As travel is a top goal, the app partners with companies like Booking.com. Referral commissions net the startup enough money that they can kick back benefits to customers.
Users get cash-back on flights, hotels, and experiences, as well as gear and gadgets from big-name brands.
Rewards are put right back into your savings fund to help you reach your next goal faster. This reinforces a usage-cycle of save, spend, earn rewards, repeat.
The Big Difference
This new app plays in the same space as Acorns, has a similar user base, and even some of the minds that made it. Four of the leaders who made Acorns into an $8601 million success have shifted over to this new app.
Seeing what Acorns was missing, they turned it into a new startup.
While Acorns has been great in the micro-investing world, they don’t offer flexibility. There is no option to save more or less, it’s just about rounding up.
On top of that, funds must be invested, they can’t be used for whatever you want. This makes it a great tool for small-scale investing, but it can’t compete in terms of goal-based saving.
The Next Step
OK, so what’s the big picture here?
Well, the reason we decided to compare the two is that we believe this new app has the same potential, if not more, than Acorns. And because it’s in its infancy, the potential ROI is huge. Getting in on the ground-level of Acorns would make any investor happy, but that ship has sailed.
The idea, team, and traction are all there. Our team is so confident in this startup that we invested more in it than any other startup to date. Jeff Bishop personally invested $100,000.
If you see the success of Acorns, I’m sure you can see the potential in our new favorite FinTech startup.
Right now for a limited time, you can learn how we made our decision to invest –– and how you too can invest in them, too–