Account aggregation
Encyclopedia
Account aggregation is a method that involves compiling information from different accounts, which may include bank
accounts, credit card
accounts, investment accounts, and other consumer or business accounts, into a single place. This may include a database
or may be provided through "screen scraping" where a user provides the requisite account-access information for an automated system to gather and compile the information into a single page.
Usually this database resides in a web-based application
or in client-side
software. While such services are primarily designed to aggregate financial information, they sometimes also display other things such as the contents of e-mail
boxes and news headlines.
's My Accounts service, though this service ended in late 2005 without explanation from Citibank. Much has been said in the financial services and banking industry as to the benefits of account aggregation – principally the customer and web site loyalty it might generate for providers – but the lack of responsibility and commitment by the providers is one reason for skepticism about committing to those same providers.
Money, Intuit Quicken
etc.) in an easy to use manner wherein they get functionalities like single password, one-click access to current account data, total net worth and expense analysis etc.
Multiple U.S. financial institutions and credit unions are providing the service, however most of the time a vendor, such as Pageonce
, CashEdge or Yodlee
, is the technology solutions provider. While outside of the U.S. client-side
account aggregation, provided by technology solutions provider eWise
, has been adopted by financial institutions like Citibank
and First Direct
(part of HSBC) in the UK, Ping An in China and Westpac
in Australia.
at most major banks such as Bank of America
. With SSO (usually implemented via SAML
) major financial institutions are now expanding their aggregation services into new areas. Rich Presentment (getting all the information about a bill that you owe) is a service that uses Aggregation extensively, and can be seen at AOL
, using AOL Bill Pay. Aggregation also powers applications such as Funds Transfer, New Account Openings, Card Based Bill Pay and so on.
Account Aggregation should be able to help many of these advisors gain the competitive edge by providing a look into their clients held-away, and non-managed accounts. Account aggregation providers such as Advisor Exchange, CashEdge, and ByAllAccounts specialize in working with the advisor industry and provide historical, transaction level data that is normalized and reconciliation ready.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
accounts, credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
accounts, investment accounts, and other consumer or business accounts, into a single place. This may include a database
Database
A database is an organized collection of data for one or more purposes, usually in digital form. The data are typically organized to model relevant aspects of reality , in a way that supports processes requiring this information...
or may be provided through "screen scraping" where a user provides the requisite account-access information for an automated system to gather and compile the information into a single page.
Usually this database resides in a web-based application
Application software
Application software, also known as an application or an "app", is computer software designed to help the user to perform specific tasks. Examples include enterprise software, accounting software, office suites, graphics software and media players. Many application programs deal principally with...
or in client-side
Client-side
Client-side refers to operations that are performed by the client in a client–server relationship in a computer network.Typically, a client is a computer application, such as a web browser, that runs on a user's local computer or workstation and connects to a server as necessary...
software. While such services are primarily designed to aggregate financial information, they sometimes also display other things such as the contents of e-mail
E-mail
Electronic mail, commonly known as email or e-mail, is a method of exchanging digital messages from an author to one or more recipients. Modern email operates across the Internet or other computer networks. Some early email systems required that the author and the recipient both be online at the...
boxes and news headlines.
Initial setback
One of the first major account aggregation services was CitibankCitibank
Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...
's My Accounts service, though this service ended in late 2005 without explanation from Citibank. Much has been said in the financial services and banking industry as to the benefits of account aggregation – principally the customer and web site loyalty it might generate for providers – but the lack of responsibility and commitment by the providers is one reason for skepticism about committing to those same providers.
Internet
The service helps users to manage their money on the Internet (typical desktop alternatives include MicrosoftMicrosoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...
Money, Intuit Quicken
Quicken
Quicken is a personal finance management tool developed by Intuit, Inc.Quicken runs on Windows and Macintosh systems. Previous versions ran on DOS. An online version is also available. The last version of Quicken for Macintosh computers was Quicken Essentials for Mac released in February 2010...
etc.) in an easy to use manner wherein they get functionalities like single password, one-click access to current account data, total net worth and expense analysis etc.
Multiple U.S. financial institutions and credit unions are providing the service, however most of the time a vendor, such as Pageonce
Pageonce
Pageonce develops mobile applications to help consumers manage and simplify their daily financial lives. Pageonce has its own account aggregation technology unlike other services that license their account aggregation technology from Yodlee...
, CashEdge or Yodlee
Yodlee
Yodlee is an American software company that develops an account aggregation service that allows users to see their credit card, bank, investment, email, travel reward accounts, etc. on one screen...
, is the technology solutions provider. While outside of the U.S. client-side
Client-side
Client-side refers to operations that are performed by the client in a client–server relationship in a computer network.Typically, a client is a computer application, such as a web browser, that runs on a user's local computer or workstation and connects to a server as necessary...
account aggregation, provided by technology solutions provider eWise
EWise
eWise is a privately held technology company with offices in Denver , London , Shenzhen and Sydney . eWise was founded by Alex Grinberg in 2000...
, has been adopted by financial institutions like Citibank
Citibank
Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...
and First Direct
First Direct
First Direct is a telephone and internet-based retail bank in the United Kingdom, a division of HSBC Bank plc. First Direct has headquarters in Leeds, West Yorkshire, England, and has 1.16 million customers....
(part of HSBC) in the UK, Ping An in China and Westpac
Westpac
Westpac , is a multinational financial services, one of the Australian "big four" banks and the second-largest bank in New Zealand....
in Australia.
Major banks
Account aggregation has evolved with single sign-onSingle sign-on
Single sign-on is a property of access control of multiple related, but independent software systems. With this property a user logs in once and gains access to all systems without being prompted to log in again at each of them...
at most major banks such as Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
. With SSO (usually implemented via SAML
SAML
Security Assertion Markup Language is an XML-based open standard for exchanging authentication and authorization data between security domains, that is, between an identity provider and a service provider...
) major financial institutions are now expanding their aggregation services into new areas. Rich Presentment (getting all the information about a bill that you owe) is a service that uses Aggregation extensively, and can be seen at AOL
AOL
AOL Inc. is an American global Internet services and media company. AOL is headquartered at 770 Broadway in New York. Founded in 1983 as Control Video Corporation, it has franchised its services to companies in several nations around the world or set up international versions of its services...
, using AOL Bill Pay. Aggregation also powers applications such as Funds Transfer, New Account Openings, Card Based Bill Pay and so on.
Independent Financial Advisors
Independent Financial Advisors are another group that account aggregators are beginning to focus their attention. Having seen increasing competition from the wirehouses and breakaway brokers, positioning themselves as their client's primary advisor is not as easy as it once was.Account Aggregation should be able to help many of these advisors gain the competitive edge by providing a look into their clients held-away, and non-managed accounts. Account aggregation providers such as Advisor Exchange, CashEdge, and ByAllAccounts specialize in working with the advisor industry and provide historical, transaction level data that is normalized and reconciliation ready.