Young adults are often lectured against spending too much money on eating out, making online purchases and other supposedly frivolous actions in order to save up for their future, but a new micro-investing app aims to help you have your cake and eat it too by making a small investment on your behalf everytime you make a purchase.
The 'Roundups' app, developed by innovators in the southern Indian city of Chennai, helps consumers in India generate investments by rounding up purchase amounts to the nearest hundred and using their spare change to make a small investment on their behalf. For example, if an individual spends 180 rupees on a cappuccino at Starbucks, the app will round off the amount to 200 rupees, effectively investing the spare change of 20 rupees into a mutual fund.
While many personal finance apps are targeted towards people who are already motivated and disciplined with their money management, the 'Roundups' app takes a unique approach by aiming to help young adults in particular see the prudence of investing by creating small micro-investments that can generate significant returns over time.
Image Credit: Drucker & Grove
What's Driving This Trend
- Automated Micro-investing
- The Roundups app showcases opportunities to develop automated micro-investing apps with unique approaches towards personal finance.
- Round-up Purchasing
- Innovators can create apps that can round-up purchase amounts, making the spare change to be invested in mutual funds.
- Investment Opportunities for Young Adults
- The Roundups app provides a unique opportunity for young adults to learn about investing by creating small micro-investments that can generate significant returns over time.
Who This Affects Most
- Personal Finance
- The personal finance industry can further develop automated micro-investing apps with a unique approach towards helping young adults in particular see how small investments can lead to significant returns over time.
- Fintech
- The Fintech industry can capitalize on the potential of round-up purchasing by innovating and creating apps that use the spare change on purchases to invest in mutual funds.
- Investment
- The Investment industry can benefit from apps like Roundups that can create investment opportunities for young adults who may not have considered investing before due to lack of knowledge or funds.
