What is fractionalisation?
Fractionalisation gives investors the opportunity to purchase a specific amount of any given stock (as opposed to buying a whole share)
Fractionalisation is a key (and often missing) step in the investor’s evolution from a beginner to an experienced investor. It offers more options at a lower risk & cost
Fractionalisation is a great acquisition and retention tool for companies looking to access new target market (young investors)
Proven consumer demand for micro-investing functionality
MASSIVE GROWTH IN MICRO-INVESTING AND EQUITY-BASED LOYALTY SCHEMES AMONGST RETAIL INVESTORS AND CONSUMERS
- 1.8m+ active micro-investing accounts in Australia. At least 35% have traded for less than a year
- 66% of people likely to buy more from a retailer offering equity-ownership through loyalty programs.
- In the US, fractional ownership is available from Lululemon and North Face through loyalty rewards. Major financial players like Fidelity and Charles Schwab offer fractional facilities since 2019.
- Retail investment apps continue to enter the Australian market without ASX fractional facilities: Stake, Moomoo, Superhero, Upstreet, Pearler, Raiz, Sharesies
