Douugh launches first phase of new financial super app to Australian market
Douugh’s super app will initially focus on micro-investing and helping customers save and invest in a diversified set of portfolios managed by BlackRock.
Australian consumer fintech Douugh (ASX: DOU) has launched the first phase of a new financial super app to the domestic market.
The soft launch will see the company remove a key barrier to investment entry by allowing customers to connect existing bank accounts directly to the Douugh platform using open banking.
This approach differs to the company’s products in the US market, where users are required to pay their salary into a Douugh bank account to unlock features of the app.
Savings plan
The first phase of the launch allows customers to set up a recurring micro-investing savings plan using Douugh’s proprietary Autopilot feature.
It will allow them to participate in risk-weighted diversified portfolios managed by US investment company BlackRock, and including a mix of Australian and US shares.
The second phase will integrate everyday budgeting and spending features to help with basic financial management needs such as saving for future goals.
Douugh said the new design would result in a lower customer acquisition cost, higher activation rates and lower churn rate.
It also delivers on the first of the company’s strategic pillars, which is centred on helping customers adopt strong financial habits to create long-term wealth.
Uncertain economy
Douugh chief executive officer Andy Taylor said the soft launch was timed well alongside an uncertain economy.
“Right now, many Australians are feeling stressed about their finances, especially those who have never experienced an economic downturn in their adult lives,” he said.
“As interest rates increase to combat rising inflation, people are seeing the value of their money erode as well as their investment gains … our research shows nearly 80% of retail investors who entered the market in the last two years are over-exposed to ‘meme’ stocks that have since cratered in value.”
He said the need to educate individuals on the advantages of a diversified investment plan through dollar cost averaging as a way to build long-term wealth has “never been more important”.