Simplicity key to investor engagement

08-Sep-2017

By Daniel Paperny

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Breaking down barriers to investing and opening up access to non-traditional asset classes are needed for a higher level of engagement among a younger cohort of retail investors, according to fintech start-up Mosaic.

Mosaic, which was one of seven emerging start-up businesses graduating through the H2 Accelerator program this year, aims to remove the friction and complexities of trading in financial markets, at a low price point of 99 cents per trade.

Speaking to financialobserver, Mosaic co-founder and chief technology officer Matt Jones said the problem with investing in traditional platforms such as E-Trade and CommSec was that investors were required to have “minimum balances, invest minimum amounts and pay exorbitant fees” to be able to take part.

“The end goal [for us] is to democratise access to markets and that’s all stemmed from the problem that has really hit the markets around accessibility and simplicity. There’s such a lock out to the mass consumer when it comes to [tapping into] even the most simplest of investments,” Jones said.

“To be able to put money in a company that you’re familiar with is expensive and hard in Australia … the idea behind Mosaic is to break down those barriers to complexity and provide a platform that is so simple that anyone can sign up, connect their bank account to it and top up any amount they want into basically any asset they want.”

Jones said a key appeal for investors on the platform is the ability to invest “exceptionally small amounts” yet still have a stable portfolio of global brands that were “highly defensible and highly diversified”.

The comments come as Mosaic unveiled its latest version of the platform this week, with updates to the static charts that first featured in its beta version launched last month.

“We’ve learned that Mosaic users love the simplicity of our charts [but] some of the most common feedback in the initial weeks of the first open beta however indicated that we needed to make charts and data more engaging and interactive,” Jones said in an online post.

“[Our update] allows you to interact with the two most important chart types in the Mosaic app [including] an edge-to-edge chart that indicates the past 30 days of your total portfolio performance [as well as] a snapshot of each day’s performance over the past 30 days.

“[But] there is still plenty of work to be done around how we’re keeping our early adopters engaged.”

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