Financial Analysis of HelloWallet Company - Assignment Example

Its vision was to achieve democratization of access to financial guidance for Americans. The formation of the company had a bearing on the situation of American household finance. A reflection of the past scenario indicated that many families in America face financial challenges, and they need a business that offers financial services.

The founding story shows that its founder had inspiration from his job in the banking sector where he focused on facilitating the accessibility and establishment of attractive pricing for bank products. The founder knew that changes to improve the services in the banking industry would take a long. Therefore, he had to maximize the opportunity that he had to establish a business that could provide financial services at a profit. HelloWallet offered a range of products and services. Overall, they classified them under detailed financial guidance and money management services.

While providing these services, the company established software that could perform aggregation, cloud hosting, email messaging, and billing. The cost of the solutions relied on the subscriber base and the minimization of the capital. However, the significant fixed cost was salaries for its engineers. HelloWallet has established competitors including Mint.com and Yodlee that offered tools for tracking expenditures freely. The existing market opportunity was still sufficient to attract many customers to the company irrespective of the existence of strong competitors.

However, consumer behavior always fluctuated as some clients had difficulty facing financial realities. Other customers feared data security and could not feed their financial data online.