Account aggregation is a process by which information from all of an individual’s accounts is electronically collected into a single interface for analysis and display. It is an effective tool that wealth management firms can use to provide better services and add value to the client relationship, thereby differentiating themselves and standing out from the crowd.
Account aggregation services are becoming more popular, especially in the Asia-Pacific region, where 88% of high-net worth individuals (HNWIs) said it is important for them to see their entire wealth picture – across multiple banks, financial institutions, and non-bank assets – in a single place, according to survey results gathered as part of the Asia-Pacific Wealth Report 2018. Younger HNWIs considered the service more important compared with their older counter parts. Citing account aggregation value, high-net worth (HNW) clients in Asia-Pacific (excl. Japan) said they were willing to pay for aggregation services.
Account aggregation will help wealth firms create new value propositions and enhance the quality of service for existing clients. Quick and easy access to client data will give firms keener insight into a client’s complete financial picture. Advisors can use the technology to provide a more holistic financial advice.
Client benefits: Account aggregation services
Source: Capgemini Financial Services Analysis, 2019.
Wealth firms will be able to increase profitability by bringing in the non-managed assets of clients from other firms, while offering more value to clients’ financial plans and goals. Firms can educate their clients by explaining how moving assets held elsewhere can offer long-term benefits.
Account aggregation helps firms become more profitable by bringing new assets under management in a way that adds value to a client’s financial plan and goals. In fact, a recent study found that firms that deploy account aggregation garner an increase of $2,000 per client annually.
Account aggregation can also support risk assessment analysis during on-boarding of new clients. With access to all of the client’s assets and liabilities, advisors can assess the riskiness of client’s exisiting portfolio. A 360-degree view also gives wealth managers better perspective to spot opportunities to offer added products and services to support client needs.
In short, account aggregation will help firms to:
- Increase productivity and efficiency, and achieve better growth prospects
- Enhance value by combining digital touchpoints with human contact
- Integrate managed and non-managed assets into a single system
- View clients’ comprehensive financial picture to deliver holistic advice
- Explore cross-selling prospects and deepen client engagement.
Considerations to keep in mind while developing in-house systems or while collaborating with a third party to build an account aggregation service for clients:
- Solutions should be compatible with a wide range of financial organizations, and adding new institutions should be easy
- The account aggregation tool should feature an easy-to-use interface both for advisors and clients with required functionalities
- The tool should be able to integrate effortlessly with investment platforms and other applications
- The account aggregation service should adopt best practices with a strong obligation to data privacy and security
Higher adoption of account aggregation services will help wealth management firms nurture existing client relationships to become more meaningful and efficient. When wealth managers and clients have a 360-degree view of all assets and liabilities, advisors are able to enhance service by demonstrating new value propositions more easily. Not only do firms employing account aggregation realize higher revenue per client, but, according to recent research, their clients are more satisfied with the service they receive.
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 Capgemini, Asia-Pacific Wealth Report 2018, November 28, 2018, https://asiapacificwealthreport.com.
 Wealth Access “How Account Aggregation Helps Bank and Trust Organizations Grow,”David Benskin, January 23, 2019, https://www.wealthaccess.com/how-account-aggregation-helps-bank-and-trust-organizations-grow-2/.
 Envestnet | Yodlee and American Banker webinar, “Account Aggregation: The Future of Wealth Management,” October 16, 2017, https://www.youtube.com/watch?v=RTJtCwvO25w.