Alegeus is a market leading SaaS-based healthcare payment solution offering a highly flexible, white-label platform that powers account-based benefit programs such as HSAs, FSAs, HRAs, COBRA, wellness incentives, lifestyle benefits and beyond. They deliver differentiated capabilities to their partners, allowing them to differentiate product offerings, operate more efficiently, and unlock full growth potential. Alegeus reaches more than 100 million commercially insured Americans.
- Transaction Banking's (TxB) Virtual Integrated Accounts (VIAs) provide a simplified account structure, allowing Alegeus to operate its COBRA business with a single physical account.
- TxB’s VIAs provide Alegeus with enhanced visibility into their clients’ payments and cashflow, and helps Alegeus make timely and accurate decisions about its resources and cash positioning.
- TxB’s platform can scale with Alegeus as their business needs grow.
Several companies depend on Alegeus to handle employee benefits packages, and Alegeus needs to organize, track and reconcile payments for every vendor in each client's portfolio. As its base of 85,000 corporate clients expands, so, too does Alegeus’ responsibility, making it critical for the benefits manager to have a partner whose solutions can scale.
Alegeus had a two-part challenge. The first was finding an agile and tech forward banking partner that provided scalable solutions to meet their urgent and complex system needs. The second was finding a partner with capabilities that would help Alegeus comply with COBRA’s regulatory requirements and provide the ability to manage and reconcile a significant number of underlying client accounts.
Goldman Sachs Transaction Banking (TxB™) offered Alegeus a core banking and payments platform which supported the depository services required to manage pools of liquidity. Additionally, TxB provided Alegeus access to necessary payment rails to ensure pay-ins and pay-outs were efficiently managed.
In addition to being easy to integrate with, TxB’s VIAs act as separate subledgers and have their own unique identifiers. Being able to leverage unique VIAs for segregation of flows simplified the settlements and rationalized their account structure. VIAs also offered transparency into payment flows, facilitated the reconciliation process, and converted a largely manual process into a more automated one.
The switch to VIAs also improved their customer experience. With virtual accounts, Alegeus can open and close new accounts quickly, instead of the longer timeframes it took when relying on physical accounts. VIAs helped to remove complexity when scaling their business because Alegeus can open virtual accounts through self-service.
The immediate benefit was that Alegeus was able to adopt TxB’s capabilities while adhering to tight timelines with minimal disruption to existing servicing activities. The longer-term benefits continue to add up. Replacing multiple omnibus physical accounts with a single account supported by VIAs reduced Alegeus’ operating costs; account onboarding is fast and the process is easy; and Alegeus has a platform that can scale as they expand.
VIAs simplified Alegeus’ account structure, reducing their cost and the complexity associated with holding multiple bank accounts
VIAs allowed Alegeus to manage clients efficiently with a clearing network-recognized virtual account number
The elevated transparency makes it simple for Alegeus to reconcile ledgers and transactions and offer better insights
Individual results may vary. Case studies are for informational purposes only, and this case study is not intended to represent or guarantee that all clients will achieve the same or similar results.
Transaction Banking services are offered by Goldman Sachs Bank USA (“GS Bank USA”) in the Americas, United Kingdom. GS Bank USA is a New York state-chartered bank and a wholly-owned subsidiary of The Goldman Sachs Group, Inc. GS Bank USA is a member of the Federal Reserve System and Member FDIC. In the United Kingdom, GS Bank USA, London Branch is authorized by the Prudential Regulation Authority, and subject to regulation by the Financial Conduct Authority and the Prudential Regulation Authority. In the EU, Transaction Banking services are offered by Goldman Sachs Bank Europe SE (“GS Bank Europe”), a wholly-owned subsidiary of GS Bank USA, through its head office in Frankfurt am Main and through its Amsterdam branch. GS Bank Europe is a German credit institution and, within the EU’s Single Supervisory Mechanism, subject to direct prudential supervision by the European Central Bank and in other respects by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) and Deutsche Bundesbank. In the Netherlands, GS Bank Europe, Amsterdam Branch is, to a limited extent, also subject to local supervision by the Dutch Central Bank (De Nederlandsche Bank) and the Dutch Authority for the Financial Markets (De Autoriteit Financiële Markten). Information contained herein does not constitute an offer by GS Bank USA or any of its affiliates.
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