Home / Launches / Foresters launches Education Bond on Tanggram, targets younger cohort

Foresters launches Education Bond on Tanggram, targets younger cohort

Foresters is combining its 150 year history with one of the newest investment platforms on the market to reach a whole new audience for its Education Bond offering.
Launches

Member-owned financial services provider Foresters Financial will attempt to broaden the reach of its Education Bond with its release on mobile investment platform Tanggram, a relatively recent addition to the platform space that combines retail investment functions with reward schemes for regular users.

The move is a significant pivot for Foresters, with the 150 year old group looking beyond the typical education bond client – middle aged and older Australians looking to save for their children pr grandchildren’s education – and searching for a whole new audience.

“The Tanggram investment app – [which] was launched in 2020 and has about 70,000 subscribers – has a user profile that was very enticing for us,” says Foresters chief executive Emma Sakellaris, adding that the skew towards female users is of particular interest to the provider.

  • “The average age of users is 32, of which 90 per cent fall between the ages of 20 and 40. In addition, with 80 per cent being female investors, it’s obviously a demographic that we believe will be attracted to the Education Bond.”

    The education bond in itself offers a way for families to save for and fund their children’s or grandchildren’s education, but it’s the product’s tax benefits that make it attractive to investors. The bond is classified as a ‘scholarship plan’ for tax purposes and allows the bond administrator to gain a tax deduction, which is passed on to the investor to help pay for education costs such as tuition fees, accommodation, travel or equipment.

    “An education bond allows for a long-term savings plan for families to plan and invest in their future generations educational outcomes, capabilities and reduce financial stress,” the CEO adds.

    To date, these benefits have largely been targeted by Australians who are in their late 30s and older. But according to the Foresters team, there is tremendous scope for younger parents to start taking advantage of the product. And that’s where Tanggram comes in, with Sakellaris convinced the “fintech pioneers” can provide the best investment avenue to reach a new audience.

    According to Tanggram chief executive Nick Tang (pictured), who founded the company in 2016 and launched the investment app in 2020, the partnership between the two providers is “ground-breaking”.

    “Tanggram is an award-winning smart wealth creating app designed to provide users with reliable returns and monthly income, while Foresters is steadfastly committed to delivering secure and sustainable fund management solutions for individuals across all stages of life,” Tang says.

    “Among their outstanding offerings, the Education Bond stands out as a brilliant avenue for funding education costs. I truly believe that our shared commitment to gain, grow and secure wealth will pave the way for a new era in wealth building.”

    Staff Writer




    Print Article

    Related
    Trailblazing deep tech investors dig into fourth NZ fund

    The NZ science and technology investors are onto their fourth fund, which is shaping up as their biggest yet. Savvy investment and active ownership have been key ingredients so far, along with support from the NZ government.

    Tahn Sharpe | 15th Apr 2024 | More
    CFS and The Inside Network align for adviser-focused insiders community

    Commenting on its multi-year partnership with The Inside Network, CFS distribution lead Bryce Quirk called the insiders community an “ideal vehicle” to deliver its core values, which hinge on servicing financial advisers and their clients.

    Staff Writer | 12th Dec 2023 | More
    CFS bulks up managed account offerings on new Edge platform

    The CFS team is ramping up the suite of model portfolio offerings on its next generation investment platform, while adding new functionality to streamline the adviser experience.

    Staff Writer | 23rd Oct 2023 | More
    Popular
  • Popular posts: