Looking to expose beneficial financial practices, Stackwell Capital will release a new application that will target Black Millennials and Generation Z Americans.
Users will be introduced to educational resources and pre-built portfolios, according to information provided to AfroTech. The investing affinity application aims to eradicate the wealth gap for Black Americans.
“Before founding this company, we fundamentally believed that the racial wealth gap is a social justice issue of our time that directly impacts many of the other gaps that have left people in the Black community feeling like they’re not set up for success in this country,” Stackwell Founder and CEO Trevor Rozier-Byrd told AfroTech. “Ultimately, I founded Stackwell to help more people in the Black community leverage the power of the market so that they could grow their wealth and have greater agency control to direct outcomes that better their lives, particularly those in the Millennial and Gen Z population where the problem is most acute.”
What Users Can Expect For Q2
The novel application will offer three key components beginning with automated model portfolios, designed to ease the anxieties of first-time investors. Research conducted by Stackwell revealed that 49 percent of a pool of 700 respondents are unsure of which investments to select. To resolve this issue, the application will recommend portfolios based on user goals and risk tolerance to best fit the needs of the users.
Next, educational content will be integrated into the application to guide and empower customers on the topic of financial literacy. The information will be tailored toward the community and delivered in a way that will be digestible to all regardless of age. In addition, accessibility and behavioral nudges will serve as Stackwell’s final component to steward its ship toward financial freedom. Putting their pen to action, users only need to commit an investment of $10 and a one-dollar subscription fee.
“We know from experience, that folks have a heightened sense of risk aversion,” VP of Product Omosefe Aiyevbomwan told AfroTech. “People don’t wanna lose money, so what’s important to us — delivering an affordable product. We want to help more folks start their investment journeys and increase long-term commitment toward wealth building.”
Stackwell's Commitment Will Expand
With Stackwell’s launch encroaching, the company is confident it will deliver a product directly improving the financial status of its users. In addition, Stackwell will adopt additional measures to propel its unified mission to incorporate financial literacy into Black communities.
“We will meet and achieve our core objectives, which is to deliver returns and ultimately wealth into the community and earn their trust. If we do those two things, it opens up an opportunity for us to start to serve the end-to-end banking of financial service needs of more people within the Black community,” Rozier-Byrd said.
He continued: “We certainly see opportunities to expand our product and services offerings beyond the investment space. We are starting to take a holistic look at the various opportunities that are out there for us as an organization to better position more people in the Black community to achieve the financial outcomes that they have for themselves individually and with their families.”