BlackRock Partners with Acorns Micro-Investing App

Home » FinTech » FinTech News » BlackRock Partners with Acorns Micro-Investing App

BlackRock Partners with Acorns Micro-Investing App

It seems that BlackRock has taken an interest in the opportunities micro-investing presents. This week the world’s largest asset management firm announced a partnership with the FinTech company Acorns, leading a $50 million round for the app. Together, the two now plan to “pursue new technology-enabled tools for Acorns’ users.”

If you aren’t familiar, Acorns is a finance app that allows users to invest their spare change. By “rounding up” transaction made on selected credit and debit cards, Acorns sets aside funds for users, which are then used to invest in a mix of ETF, stocks, and bonds. With buy-ins as low as $5, Acorns has been successful in attracting non-traditional investors and currently boasts more than 3.3 million investment account holders.

In a press release announcing the newly-formed partnership with Acorns, BlackRock COO Rob Goldstein said, “Acorns is a pioneer in creating innovative ways to engage investors in a mobile-first world. By deepening our understanding of how their customers use investment technologies, we can apply those learnings across BlackRock to evolve the products we build for our distribution partners.” Meanwhile Acorns CEO Noah Kerner said, “This partnership supports our shared ambition to put the tools of wealth-making in everyone’s hands. We wake up every day and think about how to help Americans build a better future. After reading ‘Larry’s Letter,’ I can’t think of a better collaborator on this journey.”

The letter Kerner is referring to was one sent by BlackRock founder Larry Fink addressed to CEOs everywhere.  In the open letter, he wrote (among other things), “[M]any individuals across the world are facing a combination of low rates, low wage growth, and inadequate retirement systems. Many don’t have the financial capacity, the resources, or the tools to save effectively; those who are invested are too often over-allocated to cash.” Incidentally, Acorns recently launched their Acorns Later product, which is intended to help users save and invest for retirement.

For BlackRock, the partnership with Acorns would appear as a play to attract today’s micro-investors and hopefully grow them into customers of BlackRock’s other investment products. As for Acorns, the vote of confidence from BlackRock shows that micro-investing is actually a viable idea and not just a flash in the pan. With that, the relationship between the two seems like a win-win. Moreover the deal is good news for FinTech as BlackRock continues their pursuit of nurturing emerging technology and investing in the financial tools of tomorrow.


Also published on Medium.

Comments

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Has Bitcoin Found its New Floor?

With Bitcoin's recent stable streak rolling on, could the cryptocurrency have found its floor? That's the question CCN explores in a post that lays out a compelling argument as to why the coin is unlikely to fall below $6,000 — at least not for very long. This comes as Bitcoin...

Gas Prices Fall Slightly as Potentially Volatile Autumn Looms

This week the national average gas price  fell slightly — but that doesn't tell the story of what's shaping up to an interesting time for the oil market. First, according to GasBuddy data, the average gas price now sits at $2.88 a gallon, down 2.6 cents from last week. Meanwhile...

OnDeck Spinoff Company to Create FinTech Lending Solutions for Banks

This week FinTech lender OnDeck announced that it was spinning off a new company that will bring online small business lending solutions to banks. Known as ODX, the software as a service (or "SaaS") operation will partner with institutions in order to offer their customers small business loans. This includes allowing the...