Acorns offers its over 4.5 million customers a suite of five products, includingAcorns Core, which allows clients to invest spare change, and Acorns Later, a retirement account with automatic contributions.
Part of the funds will facilitate a strategic partnership with CNBC aimed at creating content to help improve financial literacy.Through this agreement, Comcast-owned CNBC and Acorns are looking to create personal finance articles and videos to educate consumers on how to "make the right financial decisions." Heres how this agreement will allow Acorns to reach a greater and more diversified audience:
- A content partnership with CNBC will help Acorns grow its audience size.Acorns website Grow was launched in 2016 and aims to provide practical financial advice to help people achieve their financial goals. Since its inception, Grow has produced over 800 articles, essays, Q&As, and videos that have been viewed by over 3.6 million people. As part of the firms' newly formed partnership, CNBC will build a content team of around 20 people that will help Acorns significantly expand its coverage on the Grow website. At the same time, a joint financial wellness initiative," dubbed "Invest in You: Ready. Set. Grow.," will feature content available on CNBCs platform. This will enable Acorns to get in front of the more than 52 million unique visitors across CNBC Digital each month.
- The partnership will also enable the startup to add a new age demographic to its client base.Via its partnership with CNBC, Acorns, whose assets under management have surpassed $1.2 billion, is targeting a younger or less financially literate audience. Currently, its average customer is in their early thirties and earns between $50,000 and $60,000 per year.
Supporting consumers on their financial wellness journey could prove a lucrative opportunity for Acorns.With the median US household holding around $11,700 across bank and retirement savings accounts, and 29% of households having less than $1,000 in savings, there is significant need for financial education initiatives that help people save and invest in their future.
By focusing on enhancing its content on the Grow website and reaching a much broader audience through CNBCs platform, Acorns will be able to improve customer engagement and gain new customers. As it continues to monetize its financial education offerings, it will likely further widen its relative valuation gap compared with competitors like Betterment and Wealthfront, which are currently valued at $700 million and $500 million, respectively, according to Pitchbook data cited on CNBC.
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