Why You Should Use Account Aggregation

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Offering account aggregation is an effective way to add value to your client relationships, provide better service and set your firm apart from the competition.

Account aggregation provides you with a window into your clients’ overall finances. This technology gathers data from across a client’s financial accounts – custodial accounts as well as checking and savings, 401(k)s and other retirement plans, college savings plans, and even credit cards, mortgages, and other loans. This data is then presented to you and your clients in a comprehensive, convenient online view.

Having access to this data provides more holistic guidance across all aspects of clients’ financial lives, not just on accounts for which you are the advisor of record.

“We view account aggregation as an essential part of the financial planning process and an integral part of knowing our client,” said Charles Reinhold, president and CCO of CPR Investments, Inc. “How can you provide meaningful financial advice if you are only looking at a part of the total picture? If our goal is to help our clients build their net worth and become financially independent, we need to see our clients’ entire picture and more importantly, so does our client.”

And clients may view this capability as a differentiator. According to a 2016 Salesforce Research study, 78% of surveyed U.S. investors said the ability to receive a holistic view of their financial situation and history was an important consideration in selecting a financial advisor.

Build strong client relationships

When you can easily access and view your clients’ overall financial picture, you are better positioned to provide more comprehensive guidance and advice targeted to their specific needs. If you only focus on accounts under your direct supervision, you can’t fully understand a client’s risk profile or financial priorities. Account aggregation assembles a comprehensive and up-to-date picture of a client’s total assets, liabilities, net worth, spending habits, and goals.

“Using account aggregation gives us a bird’s-eye view into a client’s entire financial picture,” said Peter Krull, CEO and director of investments with Earth Equity Advisors. “This allows us to better serve the client because we’re making decisions based all of his or her financial metrics, not just the ones we are helping with.”