Frich is a community where young Americans learn about money from each other, while Acorns is a financial wellness company, according to the release.
The acquisition brings Frich’s community of 1.6 million people, and its creator network that produces financial education content, to Acorns. In addition, Frich Co-Founders Katrin Kaurov and Aleksandra Medina have joined Acorns as co-leads of education and community, per the release.
“Investing is intimidating,” Acorns CEO Noah Kerner said in the release. “Doing it with others can help people get past that. Katrin and Aleksandra helped a lot of people say ‘I don’t know’ out loud, and that’s a good place to start.”
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Frich enables young adults to learn how to manage money from each other through group chats, comment sections and creator videos. It also offers a peer benchmarking feature that lets members compare their financial habits, according to the release.
Kaurov said in the release that Frich spent five years helping people talk about money openly and that Acorns is a natural next step, “because it lets us pair that conversation with investing and saving.”
Medina said in the release that Frich built a culture in which money is “honest, relatable and social” and that it will continue to do so at Acorns.
Acorns offers products that serve the needs of kids, teens, adults and parents. It has served more than 16 million people since 2014, according to the release.
PYMNTS reported in March 2024 that FinTech companies were expanding their services to cater to the preferences and needs of younger investors. These WealthTech solutions are leveraging artificial intelligence, blockchain and mobile applications to streamline processes, provide personalized financial services and democratize investing, the report said.
The PYMNTS Intelligence report “How Zillennials’ Financial Literacy Drives Their Financial Confidence“ found that fewer than half of consumers of any generation said that they took advantage of financial literacy resources during their early adulthood.
“Such exposure to financial education matters as higher financial literacy is associated with better financial outcomes,” the report said.
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