Orion bringing HSA data to portfolio management dashboard

Fintech wants to help satisfy a growing adviser demand to offer HSAs to clients

Jul 30, 2019 @ 2:28 pm

By Ryan W. Neal

Orion Advisor Services is adding health savings account data to its portfolio management software to satisfy a growing adviser appetite to offer clients financial advice on these tax-friendly investment accounts.

The fintech company is partnering with HealthSavings Administrators, one of the largest HSA providers according to Morningstar data, on a new data feed that shows a client's HSA account alongside the rest of their portfolio in the Orion dashboard. The goal is to better incorporate HSAs into the rest of the long-term retirement planning services that advisers offer.

Advisers using Orion can access the data for no additional charge.

The data feed gives Orion a competitive advantage over other portfolio management software as the company continues expanding as a full-service fintech platform and TAMP.

HealthSavings Administrators hopes making it easier for advisers to manage HSAs will make them more inclined to offer it as an investment option to clients, a spokeswoman said.

HSAs are soaring in popularity. Total assets in HSAs is expected to reach $75 billion by the end of 2020, up from $53.8 billion at the end of 2018, according to HSA research and investment firm Devenir.

Though the funds were designed to help people in high-deductible health insurance plans manage out-of-pocket expenses, growing HSA account sizes are making them an increasingly attractive, tax-friendly vehicle for investing. Devenir expects the portion of assets invested to rise to $16.7 billion, up from $10.2 billion today.

With increased investing comes a growing need for financial recommendations. Advisers have an opportunity to educate clients on HSAs, provide investment recommendations, integrate HSAs into an overall financial plan and help with rollovers.

(More: 4 reasons 401(k) advisers should partner with a benefits broker)

Yet the majority of financial advisers still aren't offering the accounts to clients, according to a recent study by HealthSavings Administrators.

"Based on our research, many RIAs are eager to embrace HSAs but are unsure about how to leverage them as part of their long-term investment and retirement strategies," said Damian Breland, chief technology officer, in a statement.

Orion isn't the only fintech player getting involved with HSAs. Bettermentrecently partnered with Optum Bank to offer digital advice to consumers looking to invest their HSAs.


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