DataPath Granted Non-Bank HSA Custodian Status

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Nov 08, 2023, 09:57 ET

LITTLE ROCK, Ark., Nov. 8, 2023 /PRNewswire/ -- DataPath Financial Services, Inc. (DFS) announced today its approval by the Internal Revenue Service (IRS) as a Non-Bank Custodian for Health Savings Accounts (HSAs) effective November 1, 2023.

DFS can now provide more expansive capacity to its HSA client partners, including powerful efficiencies in both compliance and flexibility.

"Having debuted our HSA administration platform in 2004, DataPath already offered perhaps the most proven system on the market," said John Robbins, Jr., DataPath's president and chief executive officer. "This decision by the IRS proves that we have the experience and scope to serve just about any plan administrator or financial institution," he said.

DFS received Non-Bank Custodian approval by completing an extensive application process involving more than a year of intense scrutiny by regulatory officials.

"This achievement is a big deal. You have to put in the work, prove your strengths, and demonstrate the quality of your experience," said Chris Gunderman, DataPath's chief financial officer.

Among the many benefits to DataPath client partners of the company becoming an approved Non-Bank Custodian, DFS can now support these areas and more:

Provide a new and unique avenue for third party administrators to partner with brokers and banks
Open up new revenue opportunities for client partners
Boost deposit growth for banks through a robust solution with patented features that surpass what is typically available through core banking platforms

Starting January 1, DFS will become the non-bank custodian for all HSAToday^® and Summit HSA health savings accounts, along with all white-label HSA products administered on the DataPath platform. Previously, the role has been fulfilled by National Advisors Trust Company, Inc. of South Dakota (NATSD).

The custodian conversion process will have minimal impact on current customers of DataPath HSA management services and the DataPath HSA platform. All login processes, user portals, mobile apps, and debit cards will remain the same.

About DataPath: DataPath Financial Services, Inc. is a wholly owned division of DataPath, Inc., a leading business solutions provider for third-party administrators. DataPath has been helping companies in the employee benefits industry get where they want to grow for nearly 40 years by developing innovative business and technology solutions. Summit, the company's benefits administration platform, is the industry's first all-in-one cloud technology solution for seamless CDH, HSA, Well-Being, COBRA, and Billing administration. Learn more at dpath.com.

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SOURCE DataPath, Inc.