Micro-investing might sound like a trendy concept, but the author of this article says it deserves serious attention.

This article comes from Philipp Buschmann, co-founder, and chief executive of AAZZUR. Buschmann has written for this news service before. His firm, based in Berlin and London, provides technology solutions for banks and other financial institutions. 

The usual editorial disclaimers apply, and if you wish to respond, email tom.burroughes@wealthbriefing.com

Imagine being able to grow your money while spending it – that’s what embedded finance offers. Keeping your audience captured and invested in your company in today’s digital age demands imagination and bolder choices. But what do those bolder choices entail? Well, let’s start with micro-investing, the nifty tool to re-ignite consumer confidence and put your brand back on track. This is not a complex process; I have broken down how you can make the most of this opportunity and what it will mean for your customers.

Growing wealth, one pound at a time
Micro-investing to you might just be a trendy new term that doesn’t mean much, but I'm here to change your mind. For too long, investing has been seen as something only wealthy people can do, but thanks to embedded finance the opportunity gap is widening, and more and more people are reaping the benefits. The true power of micro-investing is how easy it is to start, as in you only need a £1 in some cases. Offering accessible financial products such as this not only puts more money in the customer’s pocket but forms a new relationship that can grow over time. 

To be the star of the show, companies need to be ambitious and repair fraying loyalty with empowering solutions. Apps like Acorns, Stash, and Robinhood have paved the way, letting users round up their everyday purchases to the nearest dollar and invest the difference, or set aside small amounts of money each week or month. Over time, these small contributions can add up to significant investments, helping users build wealth in a way that feels manageable. There is nothing stopping you from following their footsteps as you can trial it without having to reinvent your entire IT infrastructure. 

One of the most appealing aspects of micro-investing is how easy it is to get started. Many platforms are designed to be intuitive and user-friendly, taking the complexity out of choosing stocks or managing a portfolio. Users don’t need to be financial experts to start growing their wealth – they simply need to start small and stay consistent. European embedded finance provider, Solaris released a white paper highlighting the challenges wealth management firms face as shifting demographics present new demands and people grapple with an unstable job market and lower salaries, and the opportunities embedded finance brings to restore confidence and long-term growth through digitalisation. 

This growth potential empowers people, especially those who may have previously felt that wealth-building was out of their reach. Micro-investing helps create a mindset shift, showing people that they don’t need to wait for a big windfall or a pay raise to start building their financial future. By breaking down barriers to entry, it opens up investing to a broader audience, encouraging financial inclusion for everyone.

Encouraging consistent saving
Micro-investing doesn’t just help people grow wealth – it also helps build good financial habits. Because users are often encouraged to make regular, small contributions, they develop a consistent saving habit without the stress of needing to set aside large amounts at once. This “set-it-and-forget-it” approach works well for people who struggle to prioritise saving but want to invest in their future.

And, since most micro-investing platforms allow for automatic transfers or roundups, users don’t even have to think about it. The simplicity of the process reduces the mental barriers that often prevent people from saving, making it an easy way to build wealth over time. This consistency is key to financial success, and micro-investing platforms are helping to instil it in their users. Amazon Pay is a good example of this as they have integrated BNPL options with zero to low interest, establishing good habits and not putting pressure on the consumer to spend more they can afford.

Investing in the future
Micro-investing isn’t just about helping individuals – it’s also transforming how brands interact with their customers. Companies are beginning to realise that by offering investment opportunities or rewards tied to their platforms, they can foster stronger relationships and promote brand loyalty.

One way this is happening is through “stock-back” programmes. Some companies, such as Stash, allow users to earn fractional shares of stock in the brands they’re already shopping with. For example, if you buy a coffee at Starbucks using your Stash card, you might earn a tiny fraction of Starbucks stock. Over time, these small stock-back rewards accumulate, giving users a stake in the brands they love. Walgreens are already doing this by enabling shoppers to earn stock rewards on everyday purchases. So next time you are buying bananas you are also investing in your future.

This approach offers a double benefit, for both customer and company. Users are investing and building wealth, while also feeling more connected to the brands they’re buying from, and brands incentivise. It creates a sense of ownership and loyalty because customers now have a financial interest in the company’s success. They’re more likely to continue shopping with these brands and recommend them to others, creating a positive cycle of brand engagement.

Deepening customer relationships
I know just how important it is to nurture relationships for long-term prosperity. By offering investment options or financial tools, brands can show that they care about their customers’ financial wellbeing. It’s not just about selling a product or service; it’s about offering value that can impact their customers’ long-term financial health.

For example, some fintech companies partner with major brands to offer special investment incentives, such as matching a customer’s first investment or offering discounts for frequent contributions. These programmes demonstrate that the company is invested in its customers’ success, fostering trust and loyalty. Betterment partnered with Uber to provide drivers with access to automated investment options and retirement planning tools.

What’s next
As micro-investing continues to grow in popularity, more companies are likely to explore ways of integrating it into their customer engagement strategies. With financial wellness becoming an increasingly important priority for many consumers, brands that offer micro-investing options can differentiate themselves in a crowded marketplace. Solaris reported that in Europe alone, embedded finance is expected to be worth $42.24 billion by the end of 2024 and reach $126.99 billion by 2029 – a compound annual growth rate of 24.6 per cent. 

For individuals, micro-investing is opening up new pathways to wealth. For companies, it’s creating opportunities to foster loyalty and trust in a meaningful way. This combination of financial empowerment and brand engagement is a win-win, with the potential to reshape how people think about both investing and consumer relationships. Micro-investing may have started as a small idea, but its impact will be monumental, guaranteeing more autonomy, more control, and sustainable growth. Don’t hesitate – discover the wonders today.

About the author

Philipp Buschmann is a serial entrepreneur with extensive experience of working in challenger banking, financial services, IT and energy across the world. He took one of his businesses public – Ignis Petroleum was publicly listed in the US and Germany. His interests include behavioural economics. He holds an MBA from the London Business School.