Open Solutions extends banking and insurance product lines
08 June 2006 | 1322 views | 0
Source: Open Solutions
Open Solutions Inc. (NASDAQ: OPEN), a provider of integrated enabling technologies for financial services organizations throughout the United States and Canada, announced the expansion of its product mix to include Health Savings Accounts (HSAs), Corporate Money Management Accounts (CMMAs), and Customer Asset Accounts (CAAs).
In March 2006, Open Solutions acquired the Information Services Group of New Jersey-based The BISYS Group, Inc., and as a result, has expanded its overall product offering into healthcare banking, asset retention, insured deposit services for insurance companies and the corporate financial banking markets.
"Open Solutions focuses on providing superior technology and exceptional service solutions to our clients," said Mike Nicastro, SVP and chief marketing officer, Open Solutions. "Our strategy has always been to offer products and services our clients need and options they can add quickly and efficiently to their platform. Consistently, the result has been a positive and immediate impact on growth and diversity of revenue streams."
With Consumer-Driven Health Plans (CDHPs) gaining momentum among employers and consumers as cost-effective alternatives to traditional health strategies, HSAs paired with High Deductible Health Plans (HDHPs) continue to increase. HSAs are quickly being adopted much like previous benefits innovations such as Flexible Spending Accounts (FSAs), HMOs and 401(k)s.
Open Solutions provides clients in the marketplace with a comprehensive business process outsourced HSA solution offering education and marketing, investment and payer and multi-purse integration. Outsourcing this function gives financial institutions a solution that is flexible and rich in functionality, with an experienced partner that has a keen understanding of how banking relates to the healthcare business. Open Solutions' HSA product also offers transaction processing, recordkeeping, call center and regulatory support - enabling large financial institutions to focus on their core competencies.
The CMMA program features account processing, back-office services and customer care. As an alternative funding source, a CMMA allows investors to raise capital through investments in corporations. Those corporations then issue corporate debt as insurance for the funding, which typically yields a higher interest rate. Open Solutions' CMMA program was designed so corporations could raise capital while building brand loyalty and extending into new market segments. Open Solutions supports 150,000 CMMAs totaling more than $7 billion in assets.
Open Solutions' turnkey CAA solution benefits life and property/casualty insurers who can retain significant assets by establishing ongoing customer relationships with beneficiaries and claimants respectively. Open Solutions helps insurers offer bank-type services - such as interest bearing draft accounts and debit/stored value cards - as alternatives to one-time and recurring settlements. Open Solutions provides CAAs that give insurers the opportunity to maximize profitability through increased investment income, cross-selling opportunities, and a stable customer base.
Open Solutions Chairman and CEO Louis Hernandez, Jr. said, "With the integration of these three proven solutions into our expanding product mix, we believe we are poised to provide an even broader offering to the various financial services markets we serve. Our innovative technological approach and financial services expertise has laid the foundation to provide these additional markets with a strong list of new solutions and top of market products and services. These expanded offerings, combined with Open Solutions' extensive suite of products and services, further emphasizes our commitment to providing clients with the broadest range of tools to help them better compete and serve their markets."