PFM site HelloWallet raises $12m

Personal finance management (PFM) outfit HelloWallet has raised $12 million in a series b funding round led by Morningstar and TD Fund.

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PFM site HelloWallet raises $12m

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Unlike other PFM services such as Mint, HelloWallet targets companies rather than consumers, pitching personalised financial guidance to employees of Fortune 1000 companies.

The firm has sold more than 300,000 subscriptions since the launch of its enterprise application in mid-2011, and is now working with some of the largest companies in the US.

The platform uses behavioural theory techniques and statistical modelling to nudge members through personalised recommendations to improving their finances over time. Already, the company claims that, on average, members have increased their monthly savings contributions by more than 80%, an extra $350 every four weeks.

In addition to ploughing $6.75 million into HelloWallet, Morningstar will work with the site to co-market services to employers and 401(k) providers, with further integration of services to follow.

TD Fund is putting in $4 million with existing and new investors making up the $12 million round, which HelloWallet says will be used to expand its client base.

Brock Johnson, president, retirement solutions, investment management, Morningstar, says: "HelloWallet offers a unique service, based on behavioral theory, that we haven't seen anywhere else in the market. We share a common goal, which is to help investors make better decisions and help people save money for retirement. By working together, we can make an even more meaningful difference in the lives of investors."

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