Florida Banking August/September 2024

BANCSERV ENDORSED PARTNER: LIVELY

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WHAT FINANCIAL INSTITUTIONS SHOULD LOOK FOR IN AN HSA PARTNERSHIP

BY ADAM BERRY, DIRECTOR, NATIONAL BANKING PARTNERSHIPS AT LIVELY

E very customer account at a community bank tells a story. Each data point, whether it’s a mortgage balance, small business loan, credit card transaction or even a home address, reveals valuable insights into the behaviors and needs of a bank’s clientele. This wellspring of intelligence can provide banks with the opportunity to multiply their revenues and improve the economic health of their communities. For financial institutions that are looking for new revenue streams or ways to reach new customers,

But not all HSA providers are created equal and thus they won’t extend the same benefits to businesses and their employees, or the financial institutions that offer them. Offering an HSA product can take time and precious resources from other projects, so if financial institutions want their product to increase deposits and bring the most value to the bank, they’ll need a partner that can do much of the heavy lifting when it comes to plan administration, onboarding, compliance and customer service.

What are your options when offering an HSA? Whether you’re looking to offer an HSA product for the first time, or offer a better HSA product than you do currently, consider the best practices below to help guide you in selecting the right HSA partner. When offering an HSA, financial institutions have four general options: 1. An in-house demand deposit account. Building and maintaining an in-house HSA takes a lot of time and resources (especially to do it right) and usually results in

and retain existing ones (both commercial and retail), offering a Health Savings Account (HSA) can be a crucial piece of business strategy. HSAs, and their corresponding High Deductible Health Plans (HDHPs) are a most popular way U.S. workers and employers alike can save on health insurance costs while simultaneously improving employees’ financial health. In fact, more than 53 percent of private sector workers are enrolled in an employer-sponsored HDHP.

“PARTNER WITH AN HSA PROVIDER TO OFFER A COBRANDED PRODUCT WITH A PERSONALIZED APPROACH AND A COHESIVE CUSTOMER EXPERIENCE.”

But only 24 percent also participated in an HSA alongside their HDHP plan. This presents a sizable opportunity for banks to step in and offer an HSA product that will help current and potential clients save for healthcare expenses and even retirement. In fact, after age 65, HSA account holders can continue to withdraw money from their account tax-free for qualified healthcare expenses and on any other type of expenses at their current tax-rate.

a non-competitive product that functions more like a checking account than a dynamic savings and investment account. It lacks the capabilities required to be competitive like claims integration, digital receipt storage, engaging education, employer platform functionality, and APIs for payroll and benefit administration integration. It further requires a dedicated team of customer

14 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING