Source: MakeLemonade.nz
Tamaki Makaurau – Micro investing is changing how Kiwis are thinking about their investments, FintechNZ general manager James Brown says.
Micro-investing is putting in small amounts of money fairly regularly. It makes investing more accessible, especially because it’s usually done through an app such as Sharesies.
“With property sky high, now is the time for New Zealanders to consider alternatives especially when the banks are not providing guidance. Micro investing is clearly changing how more Kiwis are thinking about diversifying their investments.
“Kiwis are historically reliant on property to prop up their retirement. This is borne out by only half the country into KiwiSaver. We need a generational shift. We need something to break the cycle of older style traditional investing.
“Having passed $62billion at the end of last year, total KiwiSaver funds are growing more slowly than in previous years because of covid.
“The test will be comparing one person with an average wage, saving for the average house, with average expenses and the time taken to save that money plus interest, versus the same amount invested in low, medium and high risk investments.
“Is life about financial health and well-being or owning your own property? See the German model of renting.
“Many Germans can’t be bothered to buy a house. The country’s homeownership rate ranks among the lowest in the developed world and nearly dead last in Europe, ahead of Switzerland.”
Micro-investing allows people to invest without huge sums of money, so it’s no wonder it’s gaining so much traction.
Some micro-investing apps allow purchase of regular share investments and some even give access to property. Each micro-investing platform has its own approach and range of investments.
Fintech solutions are constantly evolving to meet industry and market demands, providing digital engagement and innovative options.
The economic impact of covid has left many people uncertain about their future financial prospects and investments.
But over the next 25 years, the financial industry is set for the biggest generational transfer of wealth ever seen.
It’s estimated that over $68 trillion globally will be passed down from current high-net-worth individuals to their Gen X and millennial children over the next 25 years.
Brown says millennials and baby boomers want better technology and by 2025, millennials will make up 75 percent of the workforce.
A Financial Services Council of New Zealand report has found 15 per cent of women, and 25 per cent of men, have used, or are using a micro-investing platform.
For further information contact James Brown on 021 982247 or NZTech’s media specialist, Make Lemonade editor-in-chief Kip Brook on 0275 030188
