KeyBank Acquires HelloWallet from Morningstar

In a deal announced late on Wednesday, KeyBank will acquire personal finance software provider, HelloWallet, from Morningstar, which purchased the company for more than $52 million in 2014. Terms of the deal were not immediately available; the 36 employees of the company that will join KeyBank will continue to work from offices in Washington, D.C. and Chicago.

KeyBank’s interest in HelloWallet extends back to at least 2015 when the company announced an exclusive partnership that made KeyBank the only bank with access to HelloWallet’s personal finance platform. Positive reviews from customers, including KeyBank research indicating customers using HelloWallet’s solutions were expressing greater financial confidence, encouraged the two firms to deepen their relationship, culminating in this week’s acquisition announcement. “We are thrilled to bring the HelloWallet team to KeyBank so they can join us on our clients’ journey toward financial wellness one step at a time,” KeyBank Community Bank co-president Dennis Devine said.

Pictured: HelloWallet founder and Chief Innovation Officer Matt Fellowes demonstrating Retirement Explorer at FinovateFall 2015.

The Best of Show winner from FinovateFall was a busy innovator while under the Morningstar umbrella. The company began the year with the release of version 5.0 of its personal finance app, providing improved navigation and a streamlined dashboard. In December, HelloWallet launched its free student-loan and retirement savings calculator and, last August, the company unveiled its Flexible Budgets feature that helps users make longer-term planning decisions, and better prepare for larger, infrequent expenses. We featured HelloWallet in our look at advice-only savings technologies in March.

Founded in 2009 by Matt Fellowes, HelloWallet demoed its Retirement Explorer solution at FinovateFall 2015. A specialist in providing employer-based financial wellness solutions, the company raised more than $15 million in funding from four investors before being acquired by Morningstar. For its part, Morningstar insisted that its decision to sell HelloWallet was consistent with its long-term strategy and was not a reflection on its commitment to providing personal finance solutions for its customers. “Morningstar has significantly enhanced its overall capability set since the acquisition of HelloWallet more than three years ago,” Morningstar President of Retirement Solutions Brock Johnson said, “and we will continue to incorporate many of the financial wellness best practices into our broad-based solutions.”

Finovate Alumni News

On Finovate.com

  • KeyBank Acquires HelloWallet from Morningstar.
  • Zopa Receives $41 Million Investment to Support Challenger Bank Launch.

Around the web

  • Scalable Capital wins Financial Innovation of the Year from the Online Personal Wealth Awards.
  • MaxMyInterest introduces 1.31% preferred rate courtesy of new partnership with UFB Direct.
  • SumUp announces availability in more than 1,500 retail locations throughout Europe.
  • Tuition.io Awarded ISO 27001 Certification.
  • Econiq models conversation behaviors of top-performing employees to enrich the omnichannel customer experience for banks and insurers.
  • OANDA teams up with QuantConnect to launch new algo trading portal.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

A Look at the Savings Tech Horizon: Advice-Only

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This is part five of a six part blog series about savings technology. Last week we discussed how savings technology works in goals-based PFM platforms and standalone, automated savings platforms and so far this week, we’ve looked at solutions targeted to Generation Z and crowdfunded savings technology. Today, we’re examining advice-only solutions.

Missed the other five savings categories? Check them out:

The advice-only model works well as an employer-sponsored benefit. It’s a great way for businesses to encourage their employees to build up their personal savings (both short-term emergency savings and long-term retirement savings) in order to mitigate finance-related stress from the workplace. Offering an advice-only approach instead of a hands-on money management platform reduces the amount of on-the-clock time employees will spend managing their money.

Advice-only

Companies in this category work well in combination with other savings tools because they simply offer advice and do not serve as an account to hold or invest users’ money. These types have been around for at least a decade (think of Mint’s 2007 Finovate demo) but have increased the complexity of their analysis using big data and behavioral analytics. HelloWallet and Wealth Wizards both use complex tools, algorithms, and behavioral data to help users set aside the optimal amount of funds to meet short term and long term goals.

  • HelloWallet
    A U.S.-based PFM company, HelloWallet has tools for everything from retirement to emergency savings recommendations. The company takes a B2B approach by selling its product to employers who provide HelloWallet as a tool to their employees as a workplace benefit. In addition to helping users save, HelloWallet also offers general financial guidance and tools to help employees make the most of other workplace benefits, such as health savings accounts. The company debuted its Retirement Explorer tool at FinovateFall 2015.
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HelloWallet helps users establish a goal for their emergency savings account
  • Wealth Wizards
    At FinovateEurope 2017, Wealth Wizards launched Pension Wizard Contribution Advice, part of its robo advisory platform. Pension Wizard is an employer-provided, workplace pension savings tool that helps users save for retirement. The app guides users toward a sensible amount to contribute each month based on their current salary. It then assesses the user’s contribution, combined with the anticipated U.K. state pension amount, and presents them with how much monthly income they should expect in retirement.
Wealth Wizards’ Pension Wizard gives users a visual representation of their retirement money

To recap, here are the types of savings tech we’ve seen so far:

Stay tuned tomorrow for the final category.

Finovate Alumni News

On Finovate.com

  • A Look at the Savings Tech Horizon: Crowdfunded Savings with Spiff and InSpirAVE.
  • LendingTree Launches Student Loan Comparison Tool.
  • Check out this week’s FinDEVr APIntelligence.
  • A Look at the Savings Tech Horizon: Advice-Only with Hellowallet and  Wealth Wizards.

Around the web

  • Malauzai Software launches Fingerprint Authentication and Touch ID technology for Android 7.0 this year.
  • VISA to enable electronic business payments for SME clients of B2B electronic invoicing network, Viewpost.
  • Fiserv reports nearly 30 banks and CUs deployed its digital banking technology in 2016, taking the total number of FIs using its online banking solutions to 3,500.
  • PurePoint launch leverages Zenmonics’ channelUNITED.
  • Bitpesa partners with Bitbond to financially assist SMEs.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • CurrencyCloud Taps Former Misys Executive Ed Addario as New CTO.
  • Quicken to Leverage PayNearMe’s Prism API.

Around the web

  • Gillian Davies joins Boku as new CFO.
  • Paducah Bank to launch Insuritas insurance agency platform to drive fee income.
  • The Banker interviews Avoka European GM, Richard Austen.
  • Investopedia profiles Chicago-based robo advisor, M1 Finance.
  • Forrester features WorkFusion in list of important AI technologies in 2017.
  • HelloWallet unveils version 5.0 with improved app navigation and streamlined dashboard.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Check out the week’s “FinDEVr APIntelligence”
  • “Finovate Debuts: Uniken Introduces Relationship-Based Authentication”
  • BlueVine’s $49 Million to Fuel Product Expansion”
  • Empyr Powering Yelp’s New Cash Back Program”

Around the web

  • Expensify exclusively endorsed by the world’s leading accounting body.
  • Scalable Capital hits €100m in assets 10 months after launch in Germany and 4 months after U.K. launch
  • vaamo receives license for portfolio management by German supervisory authority BaFin.
  • Morningstar’s HelloWallet launches free student-loan calculator.
  • Signifyd and ThreatMetrix team up to combine machine learning and digital IDs to reduce ecommerce fraud.
  • Cartera Commerce launches Offerlink, a free Google Chrome web-browser extension to help online shoppers save money.
  • Envestnet | Yodlee integrates with Microsoft Dynamics 365 for Financials.
  • Kalypton wins the Dassault Systemes 3DS fintech challenge.
  • FinDEVr alum Braintree introduces commerce infrastructure tools.
  • ACI Worldwide named “frontrunner service provider” for EBA instant credit-transfer scheme.
  • Overbond integrates DBRS credit ratings into its platform.
  • DarcMatter earns first-place honors at Next Money Shanghai Semifinal Pitch competition.

This post will be updated throughout the day as news and developments emerge. You can also follow alumni news headlines on the Finovate Twitter account.

HelloWallet’s New Feature is a Budget Within a Budget

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Goals-based saving tools have existed for quite some time, but what if the goal you’ve saved for isn’t just a one-time purchase? HelloWallet’s new feature, Flexible Budgets, launched this week to help users spend wisely over a longer time-period and to help plan for large, infrequent expenses.

The new tool is meant to be used in tandem with a regular monthly budget. Use cases include:

  • Track spending while on vacation
  • Plan for quarterly insurance payments
  • Track an annual clothing budget
  • Maintain a budget for a wedding (as someone who’s getting married in two weeks, I’m well aware of the importance of tracking expenses to make sure there’s enough left over to cut the final check for booze at the end of the reception!)

FlexibleBudget

This feature addresses a common complaint among budgeters who struggle with big-ticket, infrequent purchases. It essentially offers a way for users to set up a budget within a budget. The Flexible Budgets feature is now available in the HelloWallet app for iOS and will launch on Android later this year.

While the app would certainly come in handy as I finalize wedding expenditures, I won’t be able to use it any time soon. HelloWallet is only available as a B2B model aimed to help employers help their employees with financial health. The company’s current customers include: Salesforce, T. Rowe Price, Allstate, Vanguard, and more.

Matt Fellowes, founder of HelloWallet, gave a Best of Show-winning demonstration of Retirement Explorer at FinovateFall 2015. Retirement Explorer is a planning tool that allows users to model and save retirement scenarios. During the demo, Fellowes also announced it now allows banks to integrate HelloWallet’s financial wellness programs.

Two months ago, HelloWallet launched a savings and debt guidance tool to help users achieve their saving, spending, and debt-repayment goals. Founded in 2009, the company was purchased by Morningstar in 2014.

Finovate Alumni News

On Finovate.com

  • Persado Earns Top 20 Ranking in Inc. 500 Fastest Growing Companies List
  • Qumram Wins Swisscom Startup Challenge (Note: See Qumram demonstrate its technology in New York at FinovateFall 2016 on 8/9 September.)
  • HelloWallet’s New Feature is a Budget Within a Budget
  • Upserve’s New Square Partnership Offers Clients Access to Funding via Square Capital

Around the web

  • New partnership lets small businesses using Xero pay invoices using PayPal.
  • TSYS extends payments agreement with Swisscard.
  • The Muse features Persado on its list of “20 companies that want you to be happy.”
  • CRN lists MapD Technologies as one of 10 of the coolest big-data startups of 2016.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • GBG Group Agrees to Acquire IDScan Biometrics
  • Check out this week’s FinDEVr APIntelligence.
  • Kreditech Launches Online POS Financing Solution
  • Fenergo Adds Enhanced Rules, Remediation to its CRS Compliance Solution
  • From CEO to Deputy Mayor, Xendpay’s Rajesh Agrawal Heads to City Hall

Around the web

  • The Paypers interviews ACI Worldwide’s Craig Saks, group president of strategic products.
  • The Media Line’s column on CyberWeek 2016 at Tel Aviv University features ThetaRay.
  • PYMNTS.com chats with Jeff Hampton, TSYS director of product marketing.
  • Greg Smith, Blooom president; Aaron David Bauer, Envestnet Executive MD; and Andy Swan of LikeFolio earn spots on Investment News’ 40 Under 40 list.
  • Matt Fellowes resigns as chief innovation officer at Morningstar—which bought HelloWallet in 2014—to build retirement software.
  • ID Analytics secures patent for systematic detection of fraud rings.
  • Fenergo enhances CRS compliance solution with enhanced rules and remediation.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

HelloWallet Launches Savings and Debt Guidance Tool

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Morningstar-owned HelloWallet launched a new tool today in an effort to help banks and companies encourage their members and employees to focus on their finances. Prompted by requests from users, the Washington, D.C.-based company launched Savings & Debt Guidance to help users achieve their emergency savings, spending, and debt goals.

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Saving

The chart helps users add spending goals and visualize large upcoming purchases. In the column on the right, HelloWallet gauges how prepared the user is for unexpected expenses based on their personalized emergency savings estimate. If a spending goal puts the user’s emergency savings funds at risk, HelloWallet offers suggestions to delay spending, reduce their goal amount, or increase savings contributions to reach their goal on time.

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Debt

The tools also let users set goals for debt, guiding them to pay down loans with the highest interest rate first. To help motivate, HelloWallet educates the user on how much interest they will pay in the upcoming years and adjusts the number based on their payoff date.

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At FinovateFall 2015, the founder of HelloWallet and CIO of Morningstar, Matt Fellowes, gave a Best of Show-winning demonstration in its debut of Retirement Explorer, a planning tool that allows users to model and save retirement scenarios. Fellowes also announced it now allows banks to integrate HelloWallet’s financial wellness programs.

hellowalletstageMatt Fellowes, chief innovation officer of Morningstar and the founder of HelloWallet; Andrew Vincent, senior product manager; and Gabe Gorelick-Feldman, software engineer, showcased Retirement Explorer, which won Best of Show at FinovateFall 2015.

HelloWallet’s customers include Salesforce, T. Rowe Price, Allstate, Vanguard, and more. Before it was acquired by Morningstar in 2014, the company had raised $15.6 million.