Goodments will be purchased in a $1.5 million all-stock deal, with the ethical investing app’s founder and chief executive Tom Culver joining Douough’s management team as head of the bank’s wealth management division.
The Goodments brand and services will continue to be used by approximately 12,700 users, until Douough launches its Australian financial wellbeing app later in 2021.
The bank said the acquisition would accelerate its development and broaden the depth of its planned “Wealth Jars” functionality, a managed investment portfolio offering aimed at investing consumers’ savings commission-free.
For US Douough customers, the feature will roll out in the coming months.
Andy Taylor, founder and chief executive of Douough, said that as low interest rates hovered into negative territory, it was “vital” to offer consumers a simple and inexpensive way to invest.
Mr Culver added that the consolidation is an “exciting” opportunity to join forces with an ambitious and fast-growing fintech company.
“Our ability to connect perfectly aligned investment options with Douough’s smart banking solution will allow us to create a powerful ecosystem that can change the way every individual, regardless of experience, thinks about managing and growing their money using disruptive technology,” he said.
Douough announced plans to introduce monthly subscription fees as well as an automated money management assistant called Autopilot.
The Goodments app launched in Australia in 2017, offering users fractional trading on US stocks and information on their ethical factors.
The majority of its users (80%) are new investors, with an average age of 24 and average funds under management (FUM) totaling $6,000.
Goodments customers make an average of around nine monthly investments, with an average investment value per month of $508.
“Through providing easily accessible, values-aligned investment options, Goodments has been able to effectively tap into the millennial and Gen Z investment market who desire high returns while being mindful environment, society and ethics,” Mr. Taylor said.
Like Douough, Goodments has access to U.S. securities through its partnership with DriveWealth, a U.S.-licensed self-clearing broker-dealer and custodian.
The deal is expected to be finalized by Wednesday, subject to a number of conditions, including due diligence by both parties and approval from shareholders, the board of directors and regulatory authorities.
