With Health Savings Account assets now in excess of $8 billion nationwide, there is a substantial prize for banks that can capture these Health Savings Accounts in the financial marketplace and retain them for the long term.
However, Health Savings Account customers do not necessarily have a strong sense of allegiance to any bank. Instead, Health Savings Account owners are starting to act more like true financial account holders. That means that if they're not getting what they need from their current financial institution, they'll be taking their Health Savings Accounts elsewhere.
Consumers are catching on to the fact that they can take their Health Savings Accounts to any bank that offers custodial services, especially when they leave an employer. And in today's economy, many employees are being forced to leave. A growing number of insurance products are becoming more 'plug and play' in nature, meaning that Health Savings Accounts can be linked to any compatible high-deductible HSA insurance plan. This is giving consumers many more options.
For Health Savings Account Administrators, good customer service is a must. But banks also have to understand how consumers behave and take a holistic market focus that includes a retention strategy based on "obsessive customer advocacy." As part of that strategy, banks need to step up to the plate and offer their Health Savings Account customers the same kind of financial advisory services that investment firms offer their clients.
While most HSA holders are quite positive about the long-term savings potential of Health Savings Accounts, that optimism is balanced with some trepidation given the state of the economy. The result is that while HSA holders want to save for the future, the economy is forcing them to tap into their Health Savings Accounts sooner rather than later.
Most HSA owners also wind up in a banking relationship by default because of an arbitrary partnership between the bank and the employer (or insurer). And a large number are confused about the portability potential and other rules governing their Health Savings Accounts.
But these consumers will wise up over time, and HSA Administrators could find themselves in a predicament when it comes to customer turnover rates. HSA owners are most concerned with fees, interest rates and debit cards. In fact, they prefer using debit cards to pay their medical bills. HSA holders tend not to pay attention when health insurers recommend a bank. And most are "on the fence" about their existing HSA banking relationship.
The big question is who will step up to the plate and educate consumers about their Health Savings Accounts. Employers generally are not doing this because many are not in a position to do it. Health providers are also not doing a good job at this either. So HSA Administrators have a market advantage. But it's still early in the HSA game, so the competition will continue. The bottom line for HSA banks: Start developing your customer retention strategies now to prepare for the increasing number of HSA-savvy consumers who will start taking advantage of the portability of their Health Savings Accounts.
Comments
No comments received so far. Be the first one to comment!
RSS
