ABA Banking Journal Competitiveness Survey 2008 - (Page S20) Exhibit 50 >Do you offer Health Savings Accounts to customers? HSAs: Banks’ belated tonic? REGIONAL TREND YES Midwest West Southwest Central Southeast Northeast 55.6% 48.5 47.7 44.7 29.4 24.5 A 31% jump in one year Y Yes 42.8% (32.6%) No 57.2% (67.4%) M Percentages in parentheses represent 2007 survey report. ore than half of the banks surveyed do not offer Health Savings Accounts. However, 42.8% of the sample does offer them, and, as Exhibit 50, left, notes, that figure represents a jump from the last survey of more than 30%. What made the difference? Thus far, the results reported by those banks doing HSA business doesn’t account for it, as several exhibits indicate. Only one in four reported that they have seen new banking relationships result; one in five have seen added deposits, net, as account holders bring money in, but also draw down Exhibit 51 >Which market has proven most productive for HSAs? Other* 9.1% Employer programs 38.8% Retail customers 23.6% Professionals 28.5% BY ASSET SIZE EMPLOYER PROFESSIONALS RETAIL Under $500 million $501-$999 million $1 billion-up 38.9% 35.7 53.8 28.1% 35.7 15.4 22.2% 28.6 23.1 *Other includes farmers and self-employed. 48.3% say HSAs help retain customer relationships Exhibit 52 >What access to HSAs do you offer?* Special checks Debit cards 5.8% Special website 4.1% Other *Banks could choose multiple answers. 69.3% 68.9% for expenses; and only about 7% have seen HSAs produce fees to speak of. Exhibit 53 However, Exhibit 54, below, shows an important bright spot: Nearly half of the >Have HSAs helped generate new banking relationships? sample offering HSAs indicated that the accounts are good customer retention tools. And, when you look at Exhibit 51, above, the importance of retention is underscored. There, the most productive Yes No markets for promoting HSAs turn out to 28.7% 71.3% be employer programs and professional offices. Employer programs are especially important for banks over $1 billion. Keeping such lucrative customers as doctors, lawyers, and other professionals, plus local small businesses, happy and tied by a very critical perceived link to Exhibit 54 your bank—personal and employee >Have HSAs helped retain existing health—works at a primal level. banking relationships? Some experts say that professionals tend to pay health costs out of pocket and regard HSAs as another form of taxNo sheltered savings. But this should be no 51.7% bother. The stickiness of HSAs’ necessary link to a high-deductible health insurYes 48.3% ance plan helps create some inertia, never a bad thing for the deposit side. BY ASSET SIZE YES Under $500 million 50.7% The banks offering HSAs may also $501-$999 million 40.5 $1 billion-up 28.6 have a gut feel that now is the time to get into a business that promises to be- S20 MARCH 2008/ABA BANKING JOURNAL Competitiveness Survey 2008
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