Acorns is working with ZipRecruiter to launch the job portal throughout the app
Acorns expands into the hiring market.
The eight-year-old fintech company announced a partnership with the online job market ZipRecruiter on Monday, which enables Acorns customers to search for and apply for jobs within the app.
Acorns’ hiring portal is the first of its kind for a financial services company. The launch was on the company’s roadmap but was accelerated by sky-high unemployment during the pandemic, according to Noah Kerner, CEO of Acorns.
“The more you earn, the more you can save and invest for the future. We wanted to connect these dots for the people,” Kerner told CNBC in a telephone interview. “By aligning this with Acorns, we can help people make extra money so they can invest more.”
The job portal shows full and part-time jobs as well as remote job opportunities. In addition, users can set up job notifications and view career development content.
Kerner pointed to a lack of income as the greatest barrier to investment for Americans. 34 percent of respondents in an Acorns poll published Monday said they don’t invest or fail to meet their savings goals because they don’t make enough money. At 39% and 30% respectively, the income problem was a more frequent barrier to savings for men than for women.
Pandemic shutdowns and an economic slowdown have excluded millions of Americans from the job market. The latest unemployment claims figure hit its highest number since late August as the labor market struggles to get back to pre-coronavirus mark. The unemployment rate has fallen to 7.9% but is still more than double what it was before the pandemic.
The most popular offering from the Irvine, California-based company allows customers to automatically deposit the change from debit or credit card purchases. For example, if an Acorns user bought a cup of coffee for $ 2.75, the mobile app will be rounded up to the nearest US $ and the remaining 25 cents will be transferred to an Acorns investment account. This money is then invested in professionally managed index funds. Since then, more financial services and educational offerings have been added.
The average Acorns customer is approximately 32 years old and has an income of $ 50,000 to $ 60,000. The company says it has grown to more than 8.2 million customer accounts – up from 4.5 million about eighteen months ago and $ 3.2 billion in assets under management.
Despite the volatility during the pandemic, Kerner said more clients had stuck to an investment plan and kept their money in the markets.
“There are times when there were really rocky markets and people tended to make money,” Kerner said. “It is encouraging to see more and more people saving and investing, especially at a difficult time.”
Disclosure: Comcast, which owns CNBC’s parent company NBCUniversal, is an investor in Acorns.