December 07, 20173 Reasons Data Aggregation Pushes Banking Forward

data aggregation banking

Data aggregation, far less complicated than it sounds, is the process of gathering information from various sources and presenting it in summary form. In the past, many different industries have used it for many different purposes. Now it’s also become an important tool for the financial services industry.

Here are a few key facts to know about data aggregation:

Disaggregation is the norm in today’s financial services industry.

These days, it’s completely normal for someone to have multiple accounts with multiple banks. During our webinar, Data Aggregation & the Future of Wealth Management, 85% of our attendees confirmed this. The reasons behind why they chose to switch banks and open new accounts varied: 37% weren’t satisfied with the products and services offered while 32% said it was due to changing life circumstances. The rest chalked it up to either dissatisfaction with the customer experience or with their returns.

As individuals increase their accounts and their banks, the disaggregation of data within the financial services industry is also increasing. Because of this, data aggregation is already a reality in the U.S. and will soon be one in Europe once the revised Payments Service Directive (also known as PSD2) goes into effect in 2018. Fortunately for European banks, they can learn a lot from the developments and intelligence gained so far by U.S. banks.

Data aggregation empowers banks.

Data aggregation helps a bank to build a 360° view of its client’s finances—including banks, brokerages, credit cards, insurance, mortgage, loans, and more. The webinar demonstrates how it can be used when onboarding a banking client, as it allows a bank to really know its clients and enables advisors to upsell and cross-sell meaningful products in order to offer a more personalized experience. It also sets a bank up to provide clients with a continuous journey, since all data is in one place and connects to all channels.

Data aggregation empowers banking clients.

The client decides who has permission to retrieve their account data, meaning that they decide how to organize, share, and aggregate their data. Plus, since all relevant data is stored in one place, processes are more efficient and take less time—always an advantage for clients.

Want to know more? Watch the recorded webinar to get the full story on data aggregation and why it’s a growing practice in wealth management.

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Written byFrancisca StewartLead Writer, Appway