The case analyzes HelloWallet, the online, financial guidance service that is independent, in the context of behavioral finance notions. Additionally, it looks at the specific challenges faced by online personal financial management (PFM) systems.
Additionally, the case has a detailed summary of American family finance, including data regarding Americans' ability to conserve money, readiness for retirement, and level of financial literacy. HelloWallet offers a variety of services including PFM, financial planning, a system to aggregate users' financial accounts, and an application to help users locate financial products which are better deals than their current ones.
HelloWallet differentiated itself in three major ways while not the first to market with this type of service. First, it was independent, meaning it didn't receive pecuniary bonuses from financial institutions to push their products, nor did it receive payments (i.e., commissions) when individuals made buying choices. Second, it looked at over 130,000 financial products to help users find the best products for them, compared to its rivals, which sought through a considerably smaller number of products. Because it was independent, it used a subscription model in which a monthly fee was paid by individuals.
The case is set in March 2010, just following the beta launch of HelloWallet's web site, and it examines two crucial issues HelloWallet is grappling with: 1) the Best Way To price its product for its two distinct channels - the direct-to-consumer station as well as the enterprise channel - and 2) How to proportionately allocate its resources for both channels.
PUBLICATION DATE: February 10, 2011 PRODUCT #: F275-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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