Important Lessons From Stash (Micro-Investing App) That Partners With Green Dot Bank to Expand Into Banking

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Important Lessons From Stash (Micro-Investing App) That Partners With Green Dot Bank to Expand Into Banking
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This post is for those startups who have already made up their mind to create the micro-investing apps like Stash or Acorns. Herein, we’ve curated important lessons from the fastest growing investment app, Stash.

Earlier, investing in the stock market was complicated for newbies, but technology has simplified this area, too. However, twenty years ago, if you wanted to start investing, then you might have called a full-service broker on the phone who charged outrageous fees to make a trade.

But, now, the things have been changed completely. This is due to the fact that the investment apps allow regular people to make their own trades for a fraction of the cost, and allowing anyone with the mobile app and a bank account to start and monitor their investments from the comfort of their phone.

As a first-time investor, even if you understand how the stock market works, then you might not know how to play with the market wisely. Fortunately, there are best investment apps like Stash, Acorns and Robinhood, which are designed specifically for novice investors, and the technology is simple to understand, yet the features are comprehensive.

These investment apps are not only facilitating stock purchases, but they can compare fees, proffer investing suggestions, analyze mutual funds, and aggregate net worth or even track cash flow. Talking more about investment and stock marketing apps, then Stash is the fast-growing investment app in the market. Let’s know more about Stash invest app.

Stash – The Fastest-Growing Investment App

Stash is an American FinTech (Financial Technology) company that is offering a mobile app with micro-investing services. It aims to simplify investing, making it more accessible. According to the recent report from TechCrunch, “Stash investing app has raised $25 million in Series B funding”.

investment-app

Making your money work is the best way to communicate wealth in the long run. Nevertheless, there is another booming marketplace, which you might have missed i.e. micro investing.

The basic idea of investing still remains hot among the consumers and startup investors. Sound interesting? We actually feel the same. However, if you are also planning to create investment apps like Stash and Acorns, then you should start identifying and researching the target market first. Before you move ahead, we have curated something important for you. Let’s have a look!

Why Startups Should Invest in Micro-Investing Niche

The micro-investing niche has become one of the hottest FinTech trends in 2017. There is a number of millennials who are interested to embrace it. This is due to the fact that millennials are more concerned about their future, according to the survey-

  • Approximately 50% of them are counting on tech startups to introduce new innovations to the financial space.
  • 71% of millennials would go to the dentist than listen to a banker.

The above data reflects that the banks should work more on establishing trust with consumers, and should offer m-banking solutions.

Apart from the daily financial struggles because of banks, millennials are actually concerned about their financial future. This is why –

  • 77% millennials indicated that investing is pivotal to grow their future assets.
  • 70% millennials admit that they feel worried about their future finances.
  • Approximately 77% millennials said that they did the majority of their banking and investing operations through mobile devices, tablets or computers.

However, the above-given points clearly indicate that startups should seriously consider developing investment app. So, being a startup, if you want to create investment app like Stash, let’s check out the important lessons from investing app Stash that can help you to develop a successful investment app.

Important Lessons For Startups To Learn From Micro-Investing App, Stash

1. Provide Diverse Type of Investing Solutions

This fastest growing investment app aims to make investing easier for those people who are not financially experienced. Stash app has analyzed the market and the problems of such people, who do not have any experience in the investment. Before getting started with the investment plans, the user can set up an account in just a couple of minutes by connecting Stash app to user’s bank account. The user can access over 35 investment options, and the app provides the diverse type of investing solutions. Plus, it allows users to create a portfolio by providing personalized guidance.

The company believes that the small change will only lead to small results, and the larger goal is to get app users comfortable with investing so they can automate the process by constantly transferring large sums from their bank account via the app’s Auto Stash feature. The feature, Auto Stash allows users to invest on regular basis. The user just needs to set the amount like $5, $10 or more, then it will automatically deduct from the user’s account.

2. Making Investment Easier Who are not Financial Experienced

The next lesson is based on younger users and first-time investors who are new in the world of investments.

Stash aims to appeal to younger users and first-time investors, who are afraid of investing and uncomfortable using traditional tools. The company also notes that other people previously locked out of the market like freelancers, military personnel, and teachers are now using the tool to invest, but learn financial strategies.

The plans by Stash app seems to be working. Also, the company says that it is now servicing 850,000 user accounts. The company added over a half a million new investors to its platform, with over 25,000 new users joining every week.

3. Educate Customers on Investment Basics

Investors choose from a selection of over 30 ETFs (Exchange-Traded Funds) selected by Stash’s team. The investment is chosen based on mobile-driven factors, including historical performance, expense ratio, risk profile and asset allocation.

Moreover, the micro-investing app, Stash also tries to educate customers on investment basics by providing guidance and tips. According to report, “Stash customers have invested over $25 million through the mobile app, and the numbers are keep growing”. Stash’s business and others may work out well for the platform owners, and they are not necessarily helping customers with their financial goals as the way they traditional investments can.

So, developing an investment app that educated customers on investment basics along with investment can help them get comfortable with stock market concepts and their monthly fees.

4. Make The Platform Available for All

Rather all differences, Stash, Acorns, and Robinhood, which are all after the same kind of audience in which people who have been overlooked by traditional investment management industry that focuses more on assets under management.

As we’ve already said that the main aim behind Stash is to make its platform available for as many people as possible, regardless of net worth. It is also an important lesson that you can consider while developing investment app like Stash. You can make your app available for maximum number of people irrespective of their net worth.

5. Target Undervalued Demographic

The Stash company also concentrated undervalued demographics who can and should only give small amounts at a time. The company also emphasizes on investment products that reflect an individual’s risk tolerance, financial goals, beliefs, and interests.

There are many investment managers with billions of dollars in care more about attracting assets and earning sales commissions and fees as compared to they do putting the long-term financial health of their customers first that can be a clear conflict. So, you as a startup also ensure that you develop one such investment app that targets undervalued demographics.

Wrapping Up

Stash’s business works out well for the investment seekers. However, the main idea behind this investment app Stash is to make people comfortable with stock market concepts, indeed. Thus, if you want to start with the same successful business model under the same niche like Acorns and Stash, then you should encourage more reluctant types of investments, and useful features, which can create value to your customers’ lives.

Furthermore, the tips and in-app guides, smart analytics, and suggestions that can enhance the users’ financial literacy can also be considered. To build a FinTech company, and create an investment app like Stash, then the next logical step is to hire full stack developer, who can help you to develop a complete investment app solution.

In case, if you still have any query or confusion regarding investment app development or you want to discuss your app idea, then you can directly contact us through the below-given form. We will right back to you within 48 hours.

 
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