Largest U.S. Banks by Total Deposits (2024)
June 28, 2024 | 20 min read
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In this post, we will cover:
Account aggregation, also known as financial data aggregation, is the process of bringing together information from different financial accounts into a single place. It enables consumers to connect and view their checking accounts, savings accounts, investment accounts, credit card accounts, mortgages, HSAs, FSAs, and much more to gain a comprehensive picture of their finances.
There are several ways that financial institutions and fintechs can enable consumers to link their financial accounts today:
Account aggregation benefits consumers and businesses. In fact, 72% of consumers would likely seek out a different bank or credit union if their current provider couldn’t connect their financial accounts to financial apps or other online accounts. Benefits of account aggregation include:
Without financial data aggregation, consumers must look across a multitude of financial accounts to try to manage their financial life. On the other side, financial providers only glimpse a fragment of a consumer’s financial picture and lack visibility into where consumers are sharing data from their systems with others.
Every time data gets shared online, there’s always an element of risk involved. That’s why it is so important to choose the right data aggregation partner.
With tokenized, credential-free APIs and whitelisted screen scraping partnerships from MX, account aggregation is safer than ever. Account aggregation APIs enable companies to verify, authenticate, and aggregate data without ever sharing usernames or passwords, and whitelisting enables companies to know who is pulling what data.
Account aggregation software makes account aggregation possible. In the past, account aggregation software mostly focused on screen scraping, as mentioned above.
But the future of financial data aggregation is centered on Open Banking and Open Finance. Open Finance puts the consumer in control of their data, and enables financial institutions and fintechs to deliver more personalized money experiences that drive better outcomes for consumers. This is why account aggregation is increasingly taking the form of account aggregation APIs between financial aggregators, such as MX, and other companies, including financial institutions and fintechs.
To understand the industry and the options available here, see our list of major financial data aggregation providers in the US.
June 28, 2024 | 20 min read
June 28, 2024 | 19 min read
June 28, 2024 | 19 min read