HSAs - A Paradox for Bankers

“HSAs are an important strategic priority for financial services executives,” said Bruce Cundiff, Senior Analyst at Javelin Strategy& Research. “But financial institutions must navigate unclear and complicated business-to-business relationships to ensure profitability and customer relationships. The banking industry cannot afford to fumble this opportunity away to the investment sector, as happened with 401(k)s, nor can it take on the mess of the healthcare industry. But consumers must be targeted carefully. Despite their greater use of healthcare services, more than half of all seniors have no interest in HSAs, and detailed data-analysis shows seniors may be a much less appealing target than young adults. Financial providers must plan accordingly, as the initial benefits are related to transactions while assets are the long-term play.”

“Consumer-driven healthcare is still years from fruition, and financial executives must enter this new market with keen insight,” said James Van Dyke, President & Founder of Javelin Strategy & Research. “Industry leaders must plan the right steps now to reap long-term rewards. Success depends on thorough market analysis and HSA vendor selection to enable efficient transactions and simultaneous access to a multitude of financial and medical information, all to provide strengthened consumer assets and relationships”