How to Use Financial Aggregation Software for Your Clients

Clients may come to you with financial assets that are scattered across different bank accounts or investment accounts. Financial aggregation software brings all of your client’s money into view, enabling you to make more informed decisions when offering advice. Utilizing aggregation software can offer some advantages for both you and your clients, though there are some potential downsides to consider.

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What Is Financial Aggregation Software?

Aggregation software is designed to offer advisors a 360-degree view of a client’s financial situation. These software programs pull clients’ financial data from various sources and compile information in a centralized dashboard. The types of accounts you can collect information on include:

Bank accounts
Brokerage accounts
Retirement accounts
Credit cards
Mortgages
Student loans
Auto loans

You can view assets under your management as well as assets held away and see your client’s liabilities at a glance.

In some ways, aggregation software for financial advisors aren’t that different from consumer-facing aggregation apps. The difference is that software programs for advisors offer a greater range of functionality as a money management tool.

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Pros and Cons of Financial Aggregation Software for Advisors

Aggregating financial data can offer advantages and disadvantages to advisors. Before you add this type of software to your tech stack, it’s helpful to consider the pros and cons of doing so.

Pros	Cons
Easily view all client financial accounts in one place	Integrating new software into your tech stack may present technical and compliance challenges
Identify opportunities to make impactful adjustments to client financial plans and/or generate additional revenue	Employees and clients may require special training to learn how to utilize the software
Eliminates the need to track down client information or enter it into your CRM software manually	Advisors are responsible for ensuring compliance with SEC cybersecurity rules
Streamline new client onboarding, improving the client experience	Ensuring compliance may place an additional burden on your time and financial resources
Automatically pull the latest information to update client files	Compliance failures could trigger fines or other penalties
Clients may use a secure portal to track accounts	Clients may have assets or liabilities that cannot be aggregated

The level of functionality that financial aggregator software programs offer can encourage higher levels of client engagement. In turn, that may lead to better retention rates if clients are satisfied with the tech solutions that you’re able to offer.

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Using Financial Aggregation Software to Serve Your Clients

There are two primary ways to use financial aggregation software to manage client accounts. The first is as a financial planning tool; the second centers on developing strategies for managing risk.

As you create or adjust client financial plans, aggregation software allows you to:

Measure a client’s total assets and liabilities from the accounts being aggregated
Determine and track net worth as assets and liabilities increase or decrease over time
Review the client’s banking history to gain a deeper understanding of their income, expenses and spending patterns

You’ll have the most up-to-date information at hand as you develop financial plans to help your clients achieve their short, mid and long-term goals. Nothing is left out if your client has assets held away, and you may be better positioned to develop plans that encourage them to move those assets to your management.

Risk management is the other side of the coin. Having client account information in a centralized location allows you to assess risk across all of their investments. You can then use that assessment to make recommendations to the client that align with their risk tolerance and risk capacity.

How to Choose an Account Aggregation Software

Financial advisors choosing account aggregation software.

There are certain factors to consider when implementing account aggregation software in your business. First, consider the safety and security of any tool you plan to use, particularly ones that have access to client accounts. Integration also matters, as you want to make sure any new programs you bring into the fold work alongside the tech tools you already use.

Functionality, downtime, data accuracy and error rate measure how well a financial aggregator works. Consider the full range of features, which may include portfolio visualizer tools, calculators and other modeling tools. Check the pricing and support, as well as how the software handles compliance. Scheduling a demo is an opportunity to take the software for a test drive and assess the user experience.

Financial Aggregator Software Options for Advisors

There are many aggregator software programs on the market, but some may be more suitable for your firm than others. Here are a few options to consider if you’re searching for an account aggregation tool.

	Addepar	Blueleaf	CircleBlack	eMoney Advisor
Designed For	Wealth management firms, RIAs	Wealth management firms	Breakaway advisors, established RIAs	Broker-dealers, insurance companies, advisors
Features	Analyze a client’s total portfolio; build reports faster; offer clients a comprehensive account overview	Easily manage assets held away; client-focused user experience; direct support for every client	AI-powered portfolio aggregator; connect to 17,000+ financial institutions; multiple integrations	Comprehensive cash flow planning; secure client portal; Coplanner analysis tools
Pricing	Contact for a quote	Contact for a quote	Starting at $600 per month	Contact for a quote
Demo Available	Yes	Yes	Yes	Yes

Frequently Asked Questions

What is a financial services aggregator?

A financial services aggregator compiles information from various sources to provide a snapshot of an individual’s financial picture. Aggregation apps are commonly used in banking to allow consumers to view all of their accounts in one place. Financial advisors can also use aggregation software to guide their decision-making when offering advice to clients.

What is the purpose of account aggregation?

The main purpose of account aggregation is to allow the consolidation of financial data in one place. In financial planning, account aggregation enables advisors to view client information they may not have had access to before and clients can view the same details through a personalized portal or dashboard.

Is account aggregation safe?

Financial aggregation tools are typically designed with user privacy and safety in mind, though like any other tech solution, they’re not always foolproof. Registered investment advisors who use these tools must take additional steps to ensure that their clients’ data is protected in compliance with regulatory requirements.

Bottom Line

An advisor using financial aggregation software to get a consolidated view of client accounts.

Financial aggregators can make your job easier by bringing client information to you, rather than requiring you to have to track it down. Offering this type of functionality can increase your firm’s value proposition if you’re hoping to retain or attract clients who are looking for a tech-savvy advisor.

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Cybersecurity is just one area of compliance that RIAs need to be familiar with. Understanding the compliance rules that apply to your firm can help you avoid running afoul of the SEC. Hiring a chief compliance officer (CCO) can take the responsibility of ensuring compliance off your shoulders so you’re free to focus on serving your clients.