The goods will be purchased in a $1.5 million deal, with ethical investment app founder and CEO Tom Culver joining Douugh’s management team as head of the bank’s wealth division.

The Goodments brand and services will continue to operate for its approximately 12,700 users until Douugh launches its Australian financial health app later in 2021.

The bank said the acquisition would accelerate its development and expand the depth of its planned Wealth Jars feature, a managed investment portfolio offering aimed at investing consumers’ savings without commission.

For Douugh customers in the US, the feature will roll out in the coming months.

Andy Taylor, founder and CEO of Douugh, commented that with low interest rates teetering in negative territory, it was "vital" to offer consumers a simple, low-cost way to invest.

Mr Culver added that the consolidation was an "exciting" opportunity to join forces with fast-growing and ambitious financial technology.

"Our ability to connect perfectly aligned investment options with Douugh's smart banking solution will allow us to create a powerful ecosystem that can change the way any individual, regardless of experience, thinks about managing and growing their money with of disruptive technology,” he said.

Douugh signaled plans to introduce a monthly subscription fee as well as an automated money management assistant called Autopilot.

The Goodments app launched in Australia in 2017, offering users fractional trading of US stocks and information on their ethical factors.

The majority of its users (80 percent) are first-time investors, with an average age of 24 and average funds under management (FUM) totaling $6,000.

Goodments customers make an average of about nine monthly investments with an average investment value per month of $508.

"By providing easily accessible values-based investment options, Goodments has been able to effectively tap into the millennial and Gen Z investment market, which wants strong returns while being green, social and ethical," said Mr Taylor.

Like Douugh, Goodments has access to US securities through its partnership with DriveWealth, a US-licensed self-clearing broker and custodian.

The deal is expected to close by Wednesday, subject to a number of conditions, including due diligence by both parties and shareholder, board and regulatory approval.

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting mainly on banking, financial services and wealth.

Prior to joining the team in 2018, Sarah worked in commercial media and produced stories for a current affairs program on public radio.

You can contact her at [email protected].