Why advisors should care about account aggregation

Why advisors should care about account aggregation

by Jessica Caruso, Senior Marketing Manager at Croesus

In the past decade, the wealth management industry has shifted from a product-based, sales-focused environment to one centered on holistic advice and goal-focused service. A multitude of drivers are forcing players to pick up the pace of change. Account aggregation is one tool that wealth management professionals can use to deliver value to clients and firms.

Mounting pressures

As rivalry from traditional and nontraditional competitors intensifies, advisors are looking to strengthen their value proposition. Financial planning has shifted to goal-based investing, which aligns with clients’ increasing demand for holistic advisory services. With scrutiny from regulators also on the rise, firms and advisors are looking for ways to differentiate their offering. Account aggregation can be that differentiator and provide countless benefits to you, your clients, and your firm.

The difference maker

In Aite Group’s 2017 online survey of 369 U.S.-based financial advisors, 45% of advisors indicated that clients using account aggregation were more apt to transfer held-away assets to the firm and had a higher interest in financial planning. The survey results also confirmed that 45% of advisors indicated they have higher, or much higher, client revenue and share of wallet among clients who use account aggregation due to the increase in cross-selling opportunities.

What does this mean for advisors?

Account aggregation is an effective client engagement strategy that provides a consolidated, single view of held-away accounts. Once you have a 360-degree view of your client’s assets, you can deliver increasingly accurate and comprehensive wealth management service and advice. Financial planning, asset allocation, and rebalancing will all be more effective and benefit from better decision-making. Persuading clients to transfer assets is never easy. With account aggregation, you’ll be in a better position to persuade clients to transfer held-away assets to the firm, and then create efficiencies by automating goal-setting and retrieval of external financial data.

Win, win, win

Clients, advisors, and firms all come out ahead when account aggregation is used as a wealth management tool. A comprehensive view of a client’s total wealth allows advisors to provide better advice. Clients get better service. And firms benefit from the trickle-down effect of satisfied clients and advisors.


Experience it yourself, see the difference