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.
