Orion bringing HSA data to portfolio management dashboard

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. Betterment​ recently partnered with Optum Bank to offer digital advice to consumers looking to invest their HSAs.