Helix Expands Partnership with Acorns

Rhea-AI Summary

Helix by Q2 (NYSE: QTWO) expands partnership with Acorns, launching Acorns' Mighty Oak Debit Card to provide more opportunities for everyday Americans to save and invest. Helix serves over 14 million customers and processes $20 billion in transactions annually.

Insights

Financial Analyst

The introduction of the Mighty Oak Debit Card by Helix and Acorns signifies a strategic expansion in the fintech sector, particularly in the realm of embedded finance. This partnership leverages Helix's robust transaction processing capabilities, which handle over $20 billion annually, to enhance Acorns' value proposition in promoting long-term financial wellness. This collaboration could potentially increase customer loyalty and user engagement for Acorns, as the integration of savings and investment features directly into a debit card aligns with a growing consumer trend towards financial tools that assist with asset accumulation.

From a financial perspective, the partnership could lead to increased transaction volumes and user growth for both entities, which may positively influence Helix's revenue streams and Acorns' assets under management (AUM). It's important to monitor the adoption rates of the new debit card, as a high uptake could indicate a successful penetration of the market and could serve as a model for similar fintech collaborations.

Moreover, the move could pressure competitors in the digital banking and micro-investment space to innovate similarly, potentially leading to an increased pace of innovation within the industry. The key metrics to watch following this launch would be customer acquisition rates, average transaction values and the impact on AUM for Acorns.

Market Research Analyst

The collaboration between Helix by Q2 and Acorns underscores a significant trend in consumer finance towards embedded finance solutions. By integrating financial services within non-financial customer journeys, companies can capture more value and deepen customer relationships. The Mighty Oak Debit Card is a manifestation of this trend, aiming to seamlessly blend saving and investment behaviors with everyday spending.

Market research indicates a growing appetite for financial products that simplify and incentivize personal finance management. The demographic targeted by Acorns, often comprising millennials and Gen Z consumers, shows a preference for platforms that offer convenience and automated financial planning. This product could therefore resonate well with this demographic, potentially increasing market share in a competitive landscape.

It will be essential to evaluate consumer response to the Mighty Oak Debit Card, including qualitative feedback on user experience and quantitative data on adoption rates. This feedback will provide insights into the effectiveness of embedded finance strategies and could inform future product developments and marketing strategies.

Economist

The strategic partnership between Helix and Acorns, culminating in the launch of the Mighty Oak Debit Card, represents an intersection of behavioral economics and technology. By incentivizing saving and investing through everyday transactions, the card could potentially alter consumer spending and saving patterns. The economic implications of such a product are twofold.

First, on a microeconomic level, it encourages individuals to build wealth incrementally, which could lead to increased personal savings rates and investment in the economy. Second, on a macroeconomic scale, if widely adopted, such financial instruments could stimulate a shift in the nation's savings culture, potentially impacting domestic investment levels and long-term economic growth.

Analyzing the card's impact on savings rates and investment behaviors will be critical in assessing its economic significance. If successful, the card could also spur further innovation in the financial sector, leading to more products that align consumer spending with financial health goals.

Launch of Mighty Oak Debit Card highlights how Helix and Acorns are working together to provide more opportunities for everyday Americans to save and invest for their futures

AUSTIN, Texas--(BUSINESS WIRE)-- Helix by Q2 (NYSE: QTWO), an award-winning, cloud-native core purpose-built for embedded finance, today announced the expansion of its partnership with saving and investing app Acorns with the launch of Acorns’ Mighty Oak Debit Card.

Acorns’ new Mighty Oak Debit Card gives money a chance to grow by turning saving and investing into an everyday habit. (Photo: Business Wire)

Helix serves more than 14 million customers and processes over $20 billion in transactions annually. Helix offers the building blocks of banking – accounts, cards, payments, data and controls, administrative tools and monetization solutions – all in one place, making it easier for innovative companies like Acorns to embed personalized financial experiences in the context of the applications people use in their daily lives.

While other finance apps promote instant gratification and fast results, Acorns is all about slow and responsible growth – slow and steady wins the race. With that philosophy, Acorns has helped everyday people invest over $19 billion. Acorns’ new Mighty Oak Debit Card gives money a chance to grow by turning saving and investing into an everyday habit. With Real-Time Round-Ups®, customers invest their spare change from each purchase up to the nearest dollar. Using paycheck split, Acorns automatically saves and invests a piece of every paycheck on payday. The card also provides two of the highest annual percentage yields (APYs) available today* with 3.00% checking APY, 5.00% APY currently on the card’s Emergency Fund savings account for ‘rainy days’ and no minimum deposit or balance requirements.

“Our partnership with Acorns started in 2018, and over the years, it’s been a joy to watch them make it possible for anybody to invest,” said Ahon Sarkar, general manager of Helix by Q2. “With tools and education content that dramatically simplify every aspect of money management and with competitive interest rates for both checking and savings, the new Mighty Oak Debit Card is a huge milestone in Acorns’ mission to look after the financial best interests of everyday people.”

Helix provides real differentiation by fully integrating banking into an existing ecosystem, which drives success in embedded banking. Helix provides well-integrated products that create unique experiences and value - that customers love and return to because they can’t find it elsewhere.

“We’ve had a longstanding partnership with Helix and we’re excited to work together to bring new products to the market, like our Mighty Oak Debit Card. While other cards are just built for spending, the Mighty Oak Card helps your money grow with two of the highest APYs available,” said Shilpa Reddy, senior vice president of marketing at Acorns. “We're excited to help Americans automatically save and invest every time they spend and receive their paycheck.”

The Mighty Oak Card, which is available to Acorns investment subscription customers, also offers access to Acorns’ robust financial wellness system including Acorns Later, to plan ahead for retirement, investment rewards to earn bonus investments from 15,000 brands for everyday purchases and access to 55,000 fee-free ATMs within the AllPoint Network.

The Mighty Oak Card is available now for Acorns customers. Additionally, new Mighty Oak Cardholders are automatically entered for a chance to win one of seven $50,000 Mighty Paychecks. To learn more, visit acorns.com/mightyoakcard or download the Acorns app.

*As compared to the national average checking and savings interest rates as noted by the FDIC. Banking services provided by nbkc bank, Member FDIC. Mighty Oak Card Annual Percentage Yield (APY) as of November 13, 2023, is 3.00%. Emergency Fund APY is 5.00%. APY is variable and subject to change. No minimum opening deposit or minimum balance required.

About Helix by Q2

Helix’s award-winning Banking-as-a-Service platform gives innovative fintechs and brands the building blocks of banking — accounts, cards, payments, data and controls, admin tools, and monetization solutions — to make it easy to embed personalized financial experiences that easily integrate and scale. For more information on Helix, visit helix.Q2.com. Follow us on LinkedIn and X (formerly Twitter) to stay up to date.

About Q2 Holdings, Inc.

Q2 is a leading provider of digital banking and lending solutions to banks, credit unions, alternative finance companies, and fintechs in the U.S. and internationally. Q2’s comprehensive solution set allows its customers to better onboard, grow and serve their consumer, small business, and corporate clients. Headquartered in Austin, Texas, Q2 has offices throughout the world and is publicly traded on the NYSE under the stock symbol QTWO. To learn more, please visit Q2.com. Follow us on LinkedIn and X to stay up to date.

About Acorns

Acorns is how everyday consumers save & invest for the long term. To date, customers have invested over $19 billion with Acorns, much of it in spare change. By putting the tools of wealth-making in everyone's hands, Acorns is a leader in U.S. consumer finance. Together, Acorns, GoHenry and Pixpay have nearly 6 million subscribers across five countries. Customers get automated investing in diversified portfolios, a simple retirement product, a bank account that helps people spend less to invest more, bonus investments from brands while they shop, an easy way to invest in their kids, and a foundation of financial education. From acorns, mighty oaks do grow!

Investment advisory services offered by Acorns Advisers, LLC ("Acorns"), an SEC-registered investment advisor. Brokerage services are provided to clients of Acorns by Acorns Securities, LLC, an SEC-registered broker-dealer and member FINRA/SIPC.

Acorns is not a bank. Banking services issued by Lincoln Savings Bank or nbkc bank, Members FDIC. For more information, visit www.acorns.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240108146632/en/

Media Contact

Maria Gari

Q2 Holdings, Inc.

315-657-0041

Maria.gari@q2.com



Investor Contact

Josh Yankovich

Q2 Holdings, Inc.

O: 512-682-4463

josh.yankovich@Q2.com



Acorns Press Contact

press@acorns.com

acorns@ssmandl.com

Source: Helix by Q2

FAQ

What is the new partnership between Helix and Acorns?

Helix by Q2 (NYSE: QTWO) has expanded its partnership with Acorns, launching Acorns' Mighty Oak Debit Card to provide more opportunities for everyday Americans to save and invest.

How many customers does Helix serve?

Helix serves more than 14 million customers.

How much does Helix process in transactions annually?

Helix processes over $20 billion in transactions annually.

What does the Mighty Oak Debit Card offer?

The Mighty Oak Debit Card gives money a chance to grow by turning saving and investing into an everyday habit.

What does Helix offer to innovative companies like Acorns?

Helix offers the building blocks of banking – accounts, cards, payments, data and controls, administrative tools and monetization solutions – all in one place, making it easier for innovative companies like Acorns to embed personalized financial experiences in the context of the applications people use in their daily lives.