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Foresters launches Education Bond on Tanggram, targets younger cohort
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.”
