KeyCorp (KEY) Set To Acquire HelloWallet From Morningstar

KeyCorp’s (NYSE:KEY) banking subsidiary, KeyBank National Association, has agreed to acquire HelloWallet, a personal financial software product from Morningstar, Inc. (NASDAQ:MORN) . However, financial terms of the deal were not disclosed and closing of the transaction is subject to customary conditions.

Once the acquisition is complete, 36 HelloWallet employees will work under KeyBank in Washington DC and Chicago.

HelloWallet is an online application program, which provides financial assistance and guidance to users. The software looks at the financial health of users and gives them a score based on the same. It also provides advice on ways to improve one’s financial score.

KeyBank has been using the HelloWallet software since 2015. The combination of KeyBank and HelloWallet has helped hundreds of KeyBank clients to improve their financial wellness score. The bank uses the score provided by HelloWallet and combines it with personalized guidance from bankers to assist its clients in improving their financial wellness.

So far, KeyBank has benefitted from its relationship with HelloWallet and has liked the high-tech software so much that it has now decided to acquire it. Moreover, with this strategic acquisition, KeyBank will be in a better position to support its clients.

Dennis Devine, head of KeyCorp’s consumer and business banking segment and co-president of community banking for KeyBank, said, "KeyBank is transforming our clients' banking experience by embedding financial wellness into every interaction, whether digitally, at the branch, or via telephone. We are committed to keeping our clients' financial wellness at the core of our relationship with them."

Brock Johnson, head of Morningstar's global retirement and workplace business, said, "The decision to sell HelloWallet aligns with both Morningstar's and KeyBank's long-term strategy."

Johnson further added, "KeyBank believes strongly in HelloWallet's potential and is able to give HelloWallet the level of focus and investment that it needs to maintain a leadership position in a rapidly changing industry."

Shares of KeyCorp increased 34.8% in the last one year, outperforming the Zacks categorized Banks - Major Regional industry’s rally of 21.5%.



Currently, KeyCorp carries a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the same space are Comerica Incorporated (NYSE:CMA) and Northern Trust Corporation (NASDAQ:NTRS) .

Comerica witnessed an upward earnings estimate revision of 9.7% for the current year in the last 60 days. Moreover, its shares have gained 45.7% in the last one year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Northern Trust currently carries a Zacks Rank #2 (Buy). The company’s current year earnings estimates have been revised 2.6% upward in the last 60 days and its share price gained 17.6% in the last one year.

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