Digit
Digit
Retirement Solution
Digit is a personal financial management company that algorithmically analyzes its customers’ cash flow and helps them manage and save their money. The Digit app automatically withdraws extra cash to help customers save without even thinking about it.
How Digit uses DriveWealth to power its retirement and investing products
The Problem:
Going beyond savings
The company wanted to expand its suite of offerings beyond a simple savings account. They created an automatic investment solution with a $5 monthly subscription fee. They believed that their customers would be more likely to stick with the program if they had the potential to earn a return on their savings—beyond the meager return a basic savings account may offer in today’s low interest rate environment.
The Solution:
Micro-investing into retirement accounts
In 2020, Digit launched its investing and retirement options, directly embedded into its financial management and savings experience. The app matches customers with the right kind of retirement account for them, and automatically moves funds into investments after a 30-day period.
DriveWealth’s platform enabled Digit to seamlessly integrate retirement and investing products into their savings platform.
Results:
Customer growth and retention
Digit offers investment products as a core component of the fulsome personal finance membership. Within the first year of product launch, Digit enjoyed significantly higher customer retention rates for customers utilizing its investing products.
As of March 2021, Digit onboarded 40,000 investment accounts.
Business Insider— Digit app review: Easily set aside money to save for multiple goals
The DriveWealth Difference
DriveWealth’s proprietary portfolio management system—DriveHub—enables Digit to build unique portfolios and apply them across clients. DriveWealth’s patent-pending Fracker technology enables notional investing in over six thousand symbols out to eight decimal places, so even small account balances can be diversified across a range of securities.
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