Fiserv Credit Union Core Processors Developing Health Savings Account Functionality
Fiserv Credit Union Core Processors Developing Health Savings Account Functionality
October 6, 2005
Fiserv Credit Union Core Processors Developing Health Savings Account FunctionalityBROOKFIELD, Wis.--Oct. 6, 2005--Fiserv, Inc. (Nasdaq:FISV) announced that the seven core processors in its Credit Union Industry & Products Group are currently developing functionality to support health savings accounts (HSAs) with initial product releases to early adopters by year-end. The group's seven credit union core processors - AFTECH, CUSA Technologies, Galaxy, IntegraSys, Summit, USERS and XP Systems - collaborated on the specification and design of this critical functionality.
"This is a prime example of our credit union processors working closely together to define issues and share designs and specifications on a software solution that will have major implications for the credit union industry," said Tom Neill, president of the Fiserv Credit Union Industry & Products Group. "It's anticipated that health savings accounts will offer significant opportunities for credit unions, with the potential to strengthen and expand member relationships at a time of unprecedented competition for consumers' wallet share. In addition to encouraging new deposits and presenting new cross-selling opportunities, HSAs may prove a viable means of attracting new members to the credit union."
As high-deductible health plans (HDHPs) gain traction among employers as a cost-effective alternative to traditional health plans, consumer demand for HSAs is expected to climb in lockstep. Financial Research Corporation projects the establishment of as many as 8.2 million HSAs representing $50 billion in deposits by 2010.
The credit union HSA program is part of a larger Fiserv healthcare banking initiative designed to help financial institutions take advantage of the next wave in healthcare cost management. HSAs, owned and managed by consumers and domiciled in financial institutions nationwide, are being seen as an effective way to keep healthcare cost increases under control while still providing care access to a growing number of consumers.
According to Neill, interest in HSAs is already on the rise among Fiserv's credit union clients. "Our core processors have been presenting their HSA product plans at their client conferences this fall, and the response has been very positive," he said. "Fiserv clients are pleased that their core processor is taking steps to ensure they have the enabling technologies in place to capitalize on the emerging HSA opportunity."
During the fourth quarter of 2005, Fiserv credit union core processors will release functionality designed to support the opening and maintenance of HSAs. According to Neill, several are already nearing the beta testing phase with selected credit union clients. The Fiserv core processors' development plans provide for rolling out more advanced functionality, such as support for debit cards and overdraft lines of credit linked to the account.
Fiserv, Inc. (Nasdaq:FISV) provides information management systems and services to the financial industry, including transaction processing, business process outsourcing and software and systems solutions. The company serves more than 16,000 clients worldwide, including banks, credit unions, financial planners and investment advisers, insurance companies and agents, self-funded employers, lenders and savings institutions. Headquartered in Brookfield, Wis., Fiserv reported $3.4 billion in processing and services revenues for 2004. Fiserv was ranked the largest provider of information technology services to the U.S. financial services industry in the 2004 FinTech 100 survey by the American Banker newspaper and the Financial Insights research firm. Fiserv can be found on the Internet at www.fiserv.com.
"This is a prime example of our credit union processors working closely together to define issues and share designs and specifications on a software solution that will have major implications for the credit union industry," said Tom Neill, president of the Fiserv Credit Union Industry & Products Group. "It's anticipated that health savings accounts will offer significant opportunities for credit unions, with the potential to strengthen and expand member relationships at a time of unprecedented competition for consumers' wallet share. In addition to encouraging new deposits and presenting new cross-selling opportunities, HSAs may prove a viable means of attracting new members to the credit union."
As high-deductible health plans (HDHPs) gain traction among employers as a cost-effective alternative to traditional health plans, consumer demand for HSAs is expected to climb in lockstep. Financial Research Corporation projects the establishment of as many as 8.2 million HSAs representing $50 billion in deposits by 2010.
The credit union HSA program is part of a larger Fiserv healthcare banking initiative designed to help financial institutions take advantage of the next wave in healthcare cost management. HSAs, owned and managed by consumers and domiciled in financial institutions nationwide, are being seen as an effective way to keep healthcare cost increases under control while still providing care access to a growing number of consumers.
According to Neill, interest in HSAs is already on the rise among Fiserv's credit union clients. "Our core processors have been presenting their HSA product plans at their client conferences this fall, and the response has been very positive," he said. "Fiserv clients are pleased that their core processor is taking steps to ensure they have the enabling technologies in place to capitalize on the emerging HSA opportunity."
During the fourth quarter of 2005, Fiserv credit union core processors will release functionality designed to support the opening and maintenance of HSAs. According to Neill, several are already nearing the beta testing phase with selected credit union clients. The Fiserv core processors' development plans provide for rolling out more advanced functionality, such as support for debit cards and overdraft lines of credit linked to the account.
Fiserv, Inc. (Nasdaq:FISV) provides information management systems and services to the financial industry, including transaction processing, business process outsourcing and software and systems solutions. The company serves more than 16,000 clients worldwide, including banks, credit unions, financial planners and investment advisers, insurance companies and agents, self-funded employers, lenders and savings institutions. Headquartered in Brookfield, Wis., Fiserv reported $3.4 billion in processing and services revenues for 2004. Fiserv was ranked the largest provider of information technology services to the U.S. financial services industry in the 2004 FinTech 100 survey by the American Banker newspaper and the Financial Insights research firm. Fiserv can be found on the Internet at www.fiserv.com.