Financial Management

What is an account aggregator?

Account aggregation tools

Online access to accounts is convenient and easy. However, some people refuse to access accounts online in fear of fraud and identity theft. But your credit cards, banking information, investment accounts, and workplace retirement plans are now all on the internet, even if you don't access them online. By creating a login for your online access, you limit the ability of others to fraudulently do so in your name.

With most people having multiple accounts, it is sometimes frustrating to remember all the different account names and passwords. The security questions required up the level of safety but make it even harder to remember how to log into multiple accounts.

What is an account aggregator?

An account aggregator is a useful tool to view all your account information in one place. The information is obtained either by "screen scraping" the websites of your various accounts or your financial services company may provide the information directly.

Companies such as Mint or Yodlee MoneyCenter provide aggregation services directly to consumers. There are multiple companies that provide services to financial institutions and financial advisors and they may offer this software as one of their services to you.

What are the benefits of account aggregation software?

• You and your financial caretaker can easily view your transactions all in one place. By monitoring your one login frequently, you are more likely to catch fraud or unintended charges early. You can also set alerts for large transactions.
• You and your financial caretaker can manage your budgeting and cash flow.
• It makes it easy to monitor all your investments to make certain your portfolio aligns with your investment policy.
• You can streamline record keeping and keep track of items important for tax preparation such as charitable contributions and taxes paid.
• It may allow you to maintain the ability to manage your own finances independently for a longer period of time. By allowing your future financial care taker to "check in" on your finances, it will give your family peace of mind. They can recognize problems early and can step in before serious financial damage occurs.
• Your financial care taker has a record of all your assets so they do not get lost or forgotten. This will be important if you have a serious illness or accident that makes it difficult to communicate. It also helps your family settle your estate once you die.

Is account aggregation software safe to use?

Pure aggregator software allows only viewing of transactions and does not allow transactions to occur directly. For completing transactions, you need to log into your financial accounts through their website. This provides an added layer of safety, as you do not want someone to have access to all your accounts by using just one website.

By using aggregation software appropriately, you can ease your financial caretaking for yourself and for those helping you in the future.

The most important way to protect your financial safety online is to use strong passwords and different passwords for each site. Do not log into your accounts from public computers and use secure WiFi at all times.