Investor's wiki



What Is Aggregation?

Aggregation in the futures markets is a cycle that consolidates of all futures positions owned or controlled by a single trader or group of traders into one aggregate position. Aggregation in a financial planning sense, in any case, is an efficient accounting method that merges a person's financial data from different institutions.

Aggregation is progressively well known with advisors while servicing clients' accounts, as they are able to examine the accounts with the client in a cleaner, all the more effectively seen way before they break down the account into its particular categories.

How Aggregation Works

Financial advisors use account-aggregation technology to gather position and transaction data from investors' retail accounts held at other financial institutions. Aggregators furnish investors and their advisors with a centralized perspective on the financial backer's complete financial situation, including daily updates.

Financial planners handle both managed and non-managed accounts. Managed accounts contain assets under the advisor's influence that are held by the advisor's custodian. The planners use portfolio management and reporting software to capture a client's data through a direct connection from the custodian. The planner really must have every one of the accounts in light of the fact that accumulating them without the complete assortment would illustrate that client's finances.

Moreover, non-managed accounts contain assets that are not under the advisor's management but rather are by and by important to the client's financial plan. Models incorporate 401(k) accounts, personal checking or savings accounts, pensions, and credit card accounts.

The advisor's concern with managed accounts is lack of accessibility when the client doesn't give sign in data. Advisors can't offer a widely inclusive approach to financial planning and asset management without daily updates on non-managed accounts.

Significance of Account Aggregation

Account aggregation services settle the issue by giving a helpful method to getting current position and transaction data about accounts held all things considered retail banks or brokerages. Since investors' privacy is protected, revealing their personal-access data for each non-managed account is superfluous.

Financial planners utilize aggregate account software for dissecting a client's total assets, liabilities, and net worth; income and costs; and trends in assets, liability, net worth, and transaction values. The advisor likewise evaluates different risks in a client's portfolio before going with investment choices.

Effects of Account Aggregation

Numerous aggregation services offer direct data associations between brokerage firms and financial institutions, instead of utilizing banks' customer confronting sites. Clients give financial institutions their consent by giving personal data to the aggregate services.


  • Financial advisors and banks aggregate their client's data so they are able to deliver an unmistakable image of that client's finances without any problem. Likewise, it adds an extra level of protection for the client.
  • Aggregation is beneficial for the two players however the edge goes to the financial advisor, who could conceivably see a gap in a client's servicing where they could possibly upsell a product or service.
  • Advisors and planners hit a stopping point when their clients don't give them full access, and they contend that it doesn't permit them the full-picture view expected to offer accurate guidance on their client's finances.