Raiz Faces Growth Challenges Amid Market Volatility but Eyes AI-Driven Future

Strong Growth Amid Market Caution

Raiz Invest Limited (ASX, RZI) has delivered a robust second quarter for fiscal 2026, reporting record funds under management (FUM) of $2.1 billion, marking a 28.5% increase year-on-year. This growth was supported by net inflows of $62 million, underscoring the company’s ability to attract and retain investors despite a cautious retail environment influenced by market volatility and cost-of-living pressures over the holiday season.

Active customers grew 5.7% year-on-year to 336,048, with a notable uptick in January 2026 reaching nearly 340,000. While this growth was softer than some might have hoped, it reflects broader market sentiment rather than any fundamental weakness in Raiz’s platform or offerings.

Product Strength Drives Engagement

The standout performers were Raiz’s Plus and Kids portfolios, which surged 50% and 65% respectively year-on-year. These higher-margin products are clearly resonating with users, with over 38% of new customers opting for the Plus plan as their entry point. The introduction of the low-cost Lite plan has also attracted over 3,150 new users, primarily first-time investors, indicating Raiz’s success in broadening its appeal.

Raiz’s Super Fund and Raiz Jars also showed solid momentum, contributing to deeper customer engagement and higher average account balances, which rose 21.6% year-on-year to $6,145.

Ambitious 2026 Roadmap with AI and Trading Innovations

Looking ahead, Raiz is positioning itself for further growth with an ambitious product roadmap. Key initiatives include enabling direct investment in US-listed equities and developing infrastructure for direct ASX trading with single Holder Identification Numbers (HINs), offering customers greater flexibility and ownership.

Complementing these offerings are AI-driven enhancements aimed at transforming the customer experience. These include AI-enabled digital onboarding integrated with ChatGPT and other AI ecosystems, AI-personalised coaching assistants, and smarter cashback rewards. These innovations are designed to accelerate customer acquisition, improve retention, and streamline operations.

Strategic Partnerships and Market Positioning

Raiz has also strengthened its strategic partnerships, notably with Year13.com.au, a leading youth platform in Australia. This collaboration aims to educate and engage younger Australians, tapping into the Gen Z demographic to build long-term investing habits and secure a steady pipeline of future customers.

CEO Brendan Malone emphasised the company’s resilience and strategic discipline, highlighting ongoing efforts to explore targeted mergers and acquisitions that could unlock further value. Despite external headwinds, Raiz remains confident in delivering its FY26 UEBITDA guidance of $4.5 million to $5.5 million.

Overall, Raiz’s Q2 update paints a picture of a fintech innovator balancing steady growth with bold plans to leverage technology and partnerships, setting the stage for a dynamic year ahead.