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Douugh secures ethical investments app

 — 1 minute read

Neobank Douugh has moved to expand its wealth offering, in a $1.5 million acquisition of Millennial-focussed, responsible investing app Goodments.

Goodments will be purchased in a $1.5 million all scrip deal, with the ethical investments app founder and chief executive Tom Culver to join the Douugh management team as head of the bank’s wealth division. 

The Goodments brand and services will continue for its approximate 12,700 users, until Douugh launches its Australian financial wellness app later in 2021. 

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The bank reported the acquisition will accelerate its development and broaden the depth of its planned “Wealth Jars” feature, a managed investment portfolio offering aimed around investing consumers’ savings commission-free. 

For Douugh’s US customers, the feature will be rolled out in the coming months. 

Andy Taylor, founder and chief executive of Douugh, commented as low-interest rates teeter on negative territory, it was “vital” to offer consumers a simple, low-cost way of investing. 

Mr Culver added the consolidation is an “exciting” opportunity to join forces with a fast-growing and ambitious fintech. 

“Our ability to connect perfectly aligned investment options with Douugh’s smart banking solution will enable us to create a powerful ecosystem that can change how every individual, no matter their experience, thinks about managing and growing their money using disruptive technology,” he said.

Douugh has signalled plans to introduce a monthly subscription fee as well an automated money management assistant called Autopilot.

The Goodments app launched in Australia in 2017, offering users fractional trading in US stocks and information around their ethical factors. 

The majority of its users (80 per cent) are first-time investors, with their average age being 24, and average funds under management (FUM) totalling at $6,000. 

Goodments customers make around nine monthly investments on average, with an average investment value per month of $508.

“Through the delivery of easily accessible, values aligned investment options, Goodments has been able to effectively tap into the millennial and Gen Z investment market that wants strong returns whilst being environmental, socially and ethically conscious,” Mr Taylor said.

Like Douugh, Goodments has access to US securities through its partnership with DriveWealth, a US licensed self-clearing broker and custodian.

The deal is expected to wrap up by Wednesday, subject to a number of conditions including due diligence by both parties and shareholder, board and regulatory approval.

 

Douugh secures ethical investments app

Neobank Douugh has moved to expand its wealth offering, in a $1.5 million acquisition of Millennial-focussed, responsible investing app Goodments.

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Sarah Simpkins

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth. 

Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio. 

You can contact her on [email protected].

 

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