The firms agreed to pursue new technology-enabled tools for Acorns’ 3.3 million users, according to a statement not mentioning specific initiatives.
“BlackRock likely sees this as a golden opportunity to reach Millennials and to take a stake in a rapidly-growing fintech player,” Jackie Shroyer, senior analyst for brokerage with Corporate Insight, told FA.
“By 2025, Gen Y will have entered their prime earning years and begin to inherit wealth from their Baby Boomer parents. This makes them an emerging economic force to be reckoned with, and a group that financial services firms cannot ignore.”
Acorns was an attractive partner because of the firm’s digital engagement, Rob Goldstein, BlackRock’s chief operating officer, said in the statement. The firm will also study how Acorns’ customers use investment technologies and apply those learnings to its product development, he added.