Raytheon awarded $71 million in Navy contracts for missile systems
CLEVELAND - KeyBank (NYSE: KEY), a financial services company with a market capitalization of $17.66 billion, has expanded its partnership with Qolo, a payment cycle management solutions provider, by making a minority equity investment to further their collaboration on banking innovation. According to InvestingPro data, KeyBank maintains an impressive 5.19% dividend yield and has maintained dividend payments for 54 consecutive years. This move is part of KeyBank’s long-term strategy to invest in emerging fintech companies, a practice it has been engaging in for over a decade.
The partnership is aimed at enhancing KeyBank’s technology offerings, particularly through KeyVAM®, a cash management solution powered by Qolo’s technology. KeyVAM® allows clients to manage funds across various accounts with features like automated reporting, reconciliation, and an intuitive user interface. Since its launch, KeyVAM® has processed nearly $9 billion in transactions, showcasing the platform’s success and growing influence in the market. While KeyBank reported revenue of $4.46 billion in the last twelve months, InvestingPro analysis indicates potential growth ahead, with net income expected to improve this year.
Diana Welch Howell, head of Key Commercial Bank Alternative and Fintech Strategies, expressed satisfaction with the two-year working relationship with Qolo, underscoring the alignment of interests between the two companies. Howell highlighted the partnership’s role in providing an integrated product roadmap and enhancing the client experience.
Patricia Montesi, CEO of Qolo, also acknowledged the strengthened relationship with KeyBank, noting the shared goal of empowering businesses with technology that improves client experiences. Montesi emphasized Qolo’s commitment to advancing innovation in the banking industry.
The enhanced features of KeyVAM® include same-day ACH reconciliation, advanced dashboard reporting, and improved statement reporting that simplifies reconciliation for both primary and virtual sub-accounts. Bennie Pennington, Head of Embedded Banking at KeyBank, attributed the success and development of new capabilities to the collaborative effort with Qolo.
KeyBank, celebrating its bicentennial in 2025, is one of the nation’s largest bank-based financial services companies, with a presence from Maine to Alaska and assets totaling approximately $189 billion as of March 31, 2025. The bank offers a range of services including deposit, lending, and investment services to individuals and businesses, as well as corporate and investment banking products. While currently showing a weak overall financial health score according to InvestingPro, analysts predict the company will return to profitability this year. Discover more insights and 12+ additional ProTips about KeyBank’s performance and outlook with an InvestingPro subscription, including exclusive access to the comprehensive Pro Research Report covering what really matters for informed investment decisions.
This strategic investment in Qolo is expected to enhance KeyBank’s service offerings and solidify its position in the financial services market. The terms of the investment were not disclosed, and the information reported here is based on a press release statement.
In other recent news, KeyCorp reported its financial results for the first quarter of 2025, surpassing analysts’ expectations with earnings per share of $0.33, compared to the forecasted $0.32. The company’s revenue reached $1.8 billion, exceeding the anticipated $1.75 billion, marking a 16% year-over-year increase. KeyCorp’s strong performance was driven by record investment banking fees and momentum in its commercial payments business. The company also announced dividends for the second quarter of 2025, with a cash dividend for common shares set at $0.205 per share. Shareholders at KeyCorp’s Annual Meeting elected all fifteen director nominees and ratified Ernst & Young LLP as independent auditors for the fiscal year 2025. Meanwhile, analyst firm Keefe, Bruyette & Woods maintained an Outperform rating on KeyCorp stock, while Jefferies initiated coverage with a Hold rating, both setting a price target of $18.00. These developments highlight KeyCorp’s diversified revenue streams and robust capital position, despite economic uncertainties.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.