Building Customer Loyalty and Retention with Financial Wellness

Financial institutions are always seeking new ways to stand out from their competitors. They want to build stronger relationships with their clients. One effective approach is to offer financial wellness programs. Financial wellness programs educate, support, and empower individuals. The goal is to help them achieve and maintain financial health. Comprehensive programs often include many services, including financial education, budgeting tools, tax-saving tools, debt management, and investment guidance.

As trusted advisors, banks and credit unions are in a unique position to offer guidance. They can also support and educate consumers to help with their financial well-being. Customers who feel their financial institutions support their financial wellness are 3 times more likely to be “very satisfied.” They are also 3 times more likely to recommend their financial institution and 5 times more likely to want to buy more from it.

Another survey, this one by Personetics, asked 5,000 banking customers about loyalty and retention. Nearly 6 in 10 (58%) said they would switch financial institutions to get better financial wellness features that help them budget smarter and save money.

The Role of HSAs in Financial Wellness

The integration of Health Savings Accounts (HSAs) can significantly enhance a financial wellness program. By integrating HSAs into their programs, financial institutions can offer a holistic approach that includes both physical and financial well-being.

An HSA is a savings account. It allows people with high-deductible health plans (HDHPs) to set aside tax-free money for medical expenses. HSAs enhance financial wellness programs in several ways:

  • Engagement: HSAs encourage people to manage their healthcare costs. This leads to more engagement with their financial wellness program.
  • Tax-Advantaged Savings: HSAs offer tax-free savings. They let individuals set aside money for medical expenses and cut their taxes.
  • Long-Term Investing: Investing HSA assets allows people to grow their savings. They can build a nest egg for future medical expenses. Also, investment gains and earned interest are not taxed. That’s why HSAs are often referred to as “triple tax savings.”
  • Retirement Planning: Funds withdrawn after age 65 are taxed like regular income. This is like 401k distributions. But, if used to pay for medical expenses, withdrawals after age 65 are tax-free.

Through offering a strong HSA program, financial institutions can increase engagement and encourage tax-advantaged savings. This will set them apart from competitors. It will help keep customers, attract deposits, and raise revenues.

How to Avoid Getting Left Behind

A surprising number of financial institutions are lagging when it comes to integrating a high-quality HSA program into their financial wellness initiatives. Typical reasons include a lack of technological integration with HSA software tools, a lack of personnel trained in HSA administration and consumer education, and in many cases, simply a lack of knowledge in how to market HSAs, whether to business clients as an employee benefit or directly to consumers.

ProsperityHSA makes it possible for financial institutions who want to bridge the gap in financial wellness to offer business and commercial customers (as well as individual consumers) a ready-to-launch HSA program. Our all-in-one solution provides expertise, training, technology, marketing materials, participant education, and benefits compliance through a unique blend of stability and expertise from three trusted entities. The financial institution need only sell the HSA offering to existing and prospective clients.

Contact ProsperityHSA today to find out how quickly your institution can be up and running with a highly competitive HSA program for financial wellness.