Micro-Investing for Loyalty & Accessibility
One of the biggest obstacles folks face when it comes to investing is getting started in the first place. Yet, thanks in great part to the media madness of 2020 and 2021, more people than ever before are interested in investing or have recently kicked off their investing journeys. In 2020 alone, 10 million new retail investors joined the foray — pointing to an amplified enthusiasm to jump in.
While many of these new investors were encouraged by the popularized meme stock mania, there are plenty more safe and accessible ways people can learn about and begin investing. And who do these consumers — all of these potential retail investors — trust when it comes to their financial lives? Their banks.
This puts financial institutions in a powerful position to leverage the momentum towards retail investing. By providing avenues for customers to start investing or generating wealth, financial institutions can empower their customers and develop stronger customer relationships in return. The good news for banks is many of these paths are already available for them to leverage — in particular, micro-investing.
Advancing Accessibility with Micro-Investing
Micro-investing has become increasingly popular amongst consumers in recent years because it opens a gateway into the stock market, allowing everyday people to begin their investing journeys without large upfront cost barriers. Spare change in investing accounts can go a lot further than in piggy banks. Even if only in small amounts, micro-investing can be a creative and empowering way to help new investors dip their toes into the stock market.
Investing tiny amounts at a time does have the potential to increase in value over time. No matter how little someone may know about the stock market, micro-investing is recognized as a more manageable way for people to begin investing. For those without much money to invest with, micro-investing can help them learn more about long-term returns, dollar-cost averaging, compound growth, how the stock market works and more.
With the wealth gap more divided than ever, creating accessible entry points to the nation’s largest wealth builder — the stock market — can make a significant difference for folks looking to begin their investing journeys.
Consider how your financial institution could benefit from having customers who are investing sooner thanks to the support of micro-investing. Consider the impact on those customers who may be seeking new avenues of wealth-building but haven’t known where or how to start. Your institution could become the trusted wayshower.
Micro-Investing as a Customer Loyalty Solution: Build vs. Buy
Not every financial institution has the brokerage systems to offer micro-investing to their customers, which is why Bumped offers a solution for banks and credit unions to give their customers access to the stock market simply and easily. Powered by Bumped, financial institution customers can shop with their linked cards and automatically get free fractional shares of stock as rewards in return. Micro-investing, now as simple as picking up Starbucks or paying the Netflix bill.
Some applications curb a customer’s extra change from a purchase to automatically micro-invest for them, whereas Bumped offers free stock rewards based on a percentage of spend with their linked card products. Customers don’t spend any extra pennies to micro-invest; with Bumped, the stock rewards come from a portion of their everyday spending– with no user fees, either.
Bumped partners with financial institutions to offer their users stock rewards as a reward mechanism for debit and credit cards, as well as non-card related activities. Stock rewards are an innovative means to engage consumers while providing greater access to America's largest wealth builder — the stock market. With so many folks interested in investing, yet feeling discouraged by high brokerage deposits and steep learning curves, financial institutions can leverage this opportunity to create truly supportive relationships with their customers. Stock rewards provide sustainable results and help financial institutions develop stronger customer loyalty by giving their users a reward that can both educate them and grow in time.
Bumped built the first B2B technology platform with an underlying brokerage focused on ownership (not trading) to enable institutions to use our prebuilt set of technology tools specifically designed to reward in fractional shares of stock. Our "Graham" Suite of APIs is specifically designed to give financial institutions the ability to leverage our technology and services to reward their customers with fractional shares of stock.
Empowering your Customers as Owners
Rather than attempting to time the market, stock reward recipients can spend more time in the market, and easily micro-invest with their everyday spending simply by getting free stock rewards for everyday shopping.
If your financial institution is ready to make investing easier and more accessible for your customers, reach out to our team at firstname.lastname@example.org.