Mobile wallet company HelloWallet secures $12 million in a round led by Chicago-based Morningstar, Inc. and DC-based TD Fund, investing $6.75 million and $4 million respectively. Existing investors and a few new investors also participated in the round to advance HelloWallet’s suite of applications for personalized financial guidance, and one that’s leveraging data for the good of consumers and businesses alike. The company is currently serving a great deal of Fortune 1000 companies.
“We have proved that workers can save more and improve their financial wellness if they have access to personalized guidance,” says HelloWallet founder & CEO Matt Fellowes.
“We’ve also found HelloWallet is in demand from employers because it helps workers take more responsibility for their financial decisions. We are thrilled about our new investors, who will help us realize our dream of providing our wealth-building service to millions of workers.”
Morningstar’s investment into HelloWallet will enable both companies to co-market their services to employers and 401,000 providers as they are both advisory services. Morningstar is a leading provider of investment research, reaching more than 20 million workers by providing advices on retirement.
HelloWallet has sold 300,00 subscriptions since its launch last year, and has helped average people increase their monthly savings contribution by more than 80 percent. This is made possible with HelloWallet’s simple yet powerful platform available online and on smartphones that leverages on behavioral psychological and advanced statistical modeling. The service provides personalized recommendations to take small steps towards improving finances. Members are able to benefit from a holistic view of their financial lives, realistic savings recommendations, automated analyses of spending and goal tracking, and proactive alerts to financial health threats and opportunities.
Joining HelloWallet’s board of directors are Brock Johnson, president of retirement solutions for Morningstar, and Jim Pastoriza, managing partner at TDF. Other members include Carter McClelland, chairman of Union Square Advisors; Don Rainey, general partner at Grotech Ventures; Tige Savage, managing director at Revolution LLC; Revell Horsey, president at HelloWallet; and Matt Fellowes, chairman and CEO of HelloWallet.
Mobile payments on the rise
In other mobile payments news, Paypal is expanding its mobile wallet trial to 2,220 home depot stores across the US. This will enable consumers to pay for items via mobile device or a special Paypal card. Mastercard also pilots its QkR, a mobile payment app that allows people to interact and initiate payments via QR codes, NFC tags and other technologies. Mastercard can’t possibly just stand watching its biggest rivals VISA and American Express move to the mobile payments scene.