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.

0
Comments

What do you think?

View comments

Recommended next

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print