How Kernel is Encouraging Long-Term Investment and Wealth in New Zealand with Alpaca

As modern investors look to adapt the way they handle their money, fintechs around the world are taking advantage of opportunities to build agile, tech-first platforms that can adapt quickly to investor demands. One of these fintechs is Kernel, a New Zealand-based investment platform that is developing investment solutions that promote long-term wealth for Kiwis.

Recently, Kernel launched their US stocks and ETFs product through their partnership with Alpaca’s Broker API. We spoke with Dean Anderson, Founder and CEO at Kernel, to discuss their founding, product launch, and growth.

A Holistic Wealth Platform, Purpose-Built from the Ground Up

Founded in late 2019, Kernel was born from the realization that traditional institutions weren’t serving the evolving needs of investors, especially younger generations seeking digital-first financial platforms.

As a fully licensed fund manager in New Zealand, Kernel’s initial offerings included three core pillars: savings accounts, retirement accounts, and index funds. Building these products was vital in establishing their footing as a wealth-building platform in New Zealand. Since having an investment platform with all of these tools in one place was new to the market, they saw strong engagement, with many of their customers using multiple products while maintaining high account balances.

“In everything we've done, we've tried to optimize outcomes for our customers,” says Dean. “And because we build both the investment solutions as well as the platform, we're fairly uniquely positioned to provide a holistic platform experience.”

The approach speaks for itself, as over the last several years, they have established a loyal audience in New Zealand. They have since been looking for opportunities to expand their products, with a lean team of 24 people, which requires them to be nimble, responsive, and adaptable.

Building US Stocks and ETFs with Alpaca’s Broker API

For Kernel, expanding into direct US stocks and ETFs was a natural next step, driven by customer demand for diversified investment options beyond the company’s existing tools. Building the product and meeting that demand required finding the right infrastructure partner.

Searching for a partner that aligned with their goals of building innovative products, they were drawn to Alpaca. “What we’ve looked for over the past five years is finding those like-minded business partners who are equally as able to think outside the box, which is exactly what we're doing with Alpaca,” explains Dean. One of the ways Kernel is thinking outside of the box is through offering fractional shares, allowing customers to invest for as little as $1 NZD, increasing accessibility.

Another key feature for Kernel was Alpaca’s Local Currency Trading API, which allows customers to see their portfolio balance in NZD, making it a tailored and localized experience. “If you're a New Zealand investor, you are going to be spending New Zealand dollars, be it to buy your first home or in retirement. By showing account balances in New Zealand dollars, our customers know exactly where they are sitting. We felt the design was much more reflective of helping the average consumer understand where they are financially,” says Dean.

Throughout the beta phase of their US equities offering, both teams collaborated closely to iterate quickly, adapting to unique product needs like tiered subscription pricing. With this feature, Kernel’s customers can gain different levels of functionality, access, and behavioral tools that align with their investment objectives. Through the seamless integration of US stock trading into their existing platform, Kernel has rounded out their product offering into a fully unified wealth experience.

Caption: Kernel’s US stocks and ETFs platform. Image is for illustrative purposes only.

“We're a very small team in New Zealand that does absolutely everything from the platform to the funds to the bank accounts. Alpaca’s technology has enabled us to add US equities really efficiently to what we do while allowing us to offer a really competitive price for our customers,” says Dean.

Alpaca’s developer-first approach and responsive global support team enabled fast, efficient integration despite time zone differences. With the launch of their US stock and ETF trading product, Kernel has expanded their core pillars, continuing to meet local demand and providing a single platform for investment management and trading.

What’s Next for Kernel

Kernel had 140% growth in 2024. With a loyal user base already engaged across multiple products, they’re aiming for another strong year, with the help of the launch of US equities trading.

Following a well-received beta launch, Dean and the Kernel team are focused on product adoption and the overall platform growth. Success will be measured by the number of existing customers transferring their US stocks and ETFs from other platforms, as well as new account openings from first-time traders. The move into trading unlocks an entirely new segment of potential users, positioning Kernel to expand its reach significantly. In the coming months, the team plans to further establish their identity as a multi-product investment platform that includes trading.

While their first five years were spent building a solid foundation, Dean sees this as an opportunity to start talking about themselves more: “The next step is to really start raising our voice in the market. We know we've got a market-leading product. We know we've got a really good team and really loyal customers. Now it’s about getting the rest of the world to hear about us.”

“Kernel’s dedication to building investing products that are tailored to the needs of Kiwis is exactly what we support at Alpaca. Huge congratulations to Dean and the Kernel team for the launch, and we’re excited and looking forward to continuing to support their growth in New Zealand and beyond,” says Yoshi Yokokawa, CEO and Co-Founder of Alpaca.

Beyond product adoption, the team is also developing the fifth pillar of their platform: education. This initiative will include resources that connect customers with independent financial planning advisers to support long-term wealth building. On the product side, they plan to continue iterating on their traditional investment account and US equities offerings, including expanding into additional index funds and markets outside of the US and New Zealand.

About Alpaca

Alpaca is a US-headquartered self-clearing broker-dealer and brokerage infrastructure for stocks, ETFs, options, crypto, fixed income, and 24/5 trading – raising over USD170 million in funding. Alpaca is backed by top-tier investors globally, including Portage Ventures, Spark Capital, Tribe Capital, Social Leverage, Horizons Ventures, Unbound, SBI Group, Derayah Financial, Elefund, and Y Combinator.

Alpaca Securities LLC and Kernel Wealth Limited (“Kernel”) are not affiliated and neither are responsible for the liabilities of the other. 

The testimonials, statements, and opinions presented on the website are applicable to the specific individuals. It is important to note that individual circumstances may vary, and may not be representative of the experience of others. There are no guarantees of future performance or success. The testimonials are voluntarily provided and are not paid, nor were they provided with free products, services or any other benefit in exchange for said statements.

Fractional share trading allows a customer to buy and sell fractional share quantities and dollar amounts of certain securities. Fractional share trading presents unique risks and is subject to particular limitations that you should be aware of before engaging in such activity. See Alpaca Customer Agreement at https://alpaca.markets/disclosures for more details.

The content of this blog is for general informational purposes only. All examples are for illustrative purposes only.

All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. There is no guarantee that any investment strategy will achieve its objectives. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.

Securities brokerage services are provided by Alpaca Securities LLC ("Alpaca Securities"), member FINRA/SIPC, a wholly-owned subsidiary of AlpacaDB, Inc. Technology and services are offered by AlpacaDB, Inc.

This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Alpaca Securities are not registered or licensed, as applicable.