The new Trump Accounts investment vehicle went live on July 4, and more than seven million accounts for children have already been created. Beyond its aim of improving the financial wellbeing of the next generation, the initiative could significantly influence investor expectations for financial firms’ digital platforms. This knock-on effect is especially significant given that a primary aim of the initiative is to reach low-income families for whom the app’s digital experience could be one of the first investing platforms they use.
The product is the result of a partnership between The Bank of New York Mellon, Robinhood and the U.S. Treasury, with Robinhood developing the app in conjunction with the National Design Studio. Federal officials, including U.S. Chief Design Officer Joe Gebbia, have promoted the product’s modern design and ease of use, both of which our testing confirmed.
Signaling a broad mobile-first shift across financial services, accounts are only accessible via mobile app with users also needing to complete the account application on the app, if they did not already do so when they filed last year’s tax returns. There is a desktop site, but it only functions as a promotional and informational resource. This marks a major departure from industry norms, as nearly all brokerage firms in our coverage set have significant mobile gaps relative to their desktop platforms.
The app features an easy-to-use, minimalist design that begins with account value and change data points alongside an account value chart. In addition to a default Now view, the chart features Age 18 and Age 60 views that provide users with estimated account value projections. The projection views include a convenient slider that allows users to model the estimated value of monthly contributions ranging from $0 to the $415 legal max.
Below the chart, the screen solely features a simple investment holdings section listing the five largest holdings in the preselected SPYM index fund that is currently the only investment option. A View SPYM button leads to a dedicated screen that provides more detailed information on the fund, including Average 10-Year Return and Expense Ratio data points. The narrowly focused home screen provides essentials at a glance, without clutter or dense details that can be overwhelming and distracting.
The static top-level navigation features a convenient dropdown for toggling between multiple accounts that includes a well-placed Add Child option. The navigation also houses a QR code icon that opens a QR code users can share to enable others to easily make contributions to the account as well as a standard hamburger menu that leads to a profile screen.
The bottom navigation includes Contribute and Learn items, in addition to the home screen. The Contribute screen houses a simple cash transfer flow, and the Learn screen provides educational articles organized by Investing and Trump Accounts categories. Designing the app around three primary screens further reinforces its user-friendly approach, limiting choices to the most essential functions.
Notably, the government has said that users will be able to choose among various index fund offerings, which are not yet available and will require additional buildout. Look for an update after this capability goes live, and explore our Insights page for more research on trends in brokerage and other industries. To learn about how CI’s subscription services can help your investing firm enhance its digital experience, check out our Online Brokerage Research Services.
Sam Marlowe
Sam Marlowe is a Senior Analyst on CI's brokerage team.