A report by Corporate Insight examined three well-known investment startups, — Acorns, Stash and Robinhood – that are shaping their services and investment options to the bank-wary segment they serve.
These platforms are already beginning to grow with their audience, according to Jackie Shroyer, who monitors brokers at Corporate Insight.
“To retain their client base and continue to grow, and become a real threat to traditional brokerages, their services will need to mature, and they will need to start embedding themselves further into their clients’ financial lives,” said Shroyer. “Stash and Acorns are already heading in the right direction, as both are beginning to add new services. Stash recently launched a custodial account and a retirement account and announced plans for savings and checking accounts Acorns launched Acorns Later, a retirement account.”
PFM apps both attract and help novice investors by removing high commissions and high minimums. To further build demand, Robinhood offers also crypto investments.
“While Robinhood isn’t technically a PFM app, it offers free trades, which is a huge draw. It is also one of the only established brokerages to offer crypto trading,” said Shroyer.