What Is Aggregation?

Aggregation in the futures markets is a process that combines of all futures positions owned or controlled by a single trader or group of traders into one aggregate position. Aggregation in a financial planning sense, however, is a time-saving accounting method that consolidates an iওndividual’s financial data from various institutions.

Aggregation is increasingly popular with 🉐advisors when servicing clients’ accounts, as they are able to discuss the accounts with the client in a cleaner, more easily understood way before they break down the acꦰcount into its respective categories.

How Aggregation Works

Financial advisors use account-aggregation technology to gath🍸er position 🔴and transaction information from investors’ retail accounts held at other financial institutions. Aggregators provide investors and their advisors with a centralized view of the investor’s complete financial situation, including daily updates.

Financial planners handle both managed and non-managed accounts. Managed accounts contain assets under the advisor’s control that are held by the advisor’s custodian. The planners utilize portfolio management and reporting software to capture a client’s data through a direct link from the custodian. It is importa🐭nt for the planner to have all the accounts because aggregating them without the complete collection would paint an inaccurate picture of that client's finances.

Additionally, non-managed accounts contain assets that are not under the advisor's management but are nevertheless important to the client’s financial plan. Examples include 401(k) accounts, personal checking or 澳洲幸运5官方开奖结果体彩网:savings accounts, pensions, and credit card accounts.

The advisor’s concern with managed accounts is lack of accessibility when the client does not provide log-in information. Adv✃isors cannot offer an all-encompassing approach to financial planning and asset management without daily updates on non-managed accounts.

Importance of Account Aggregation

澳洲幸运5官方开奖结果体彩网:Account aggregation services solve the issue by providing a convenient method for obtaining current position and transaction information about accounts held at most retail banks o🤪r brokerages. Because investors’ privacy is protected, disclosing their personal-access information for each non-managed account is unnecessary.

Financial planners use aggregate account software for analyzing a client’s total assets, liabilities, and net wort♉h; income and expenses; and trends in assets, liability, net worth, and transaction values. T♕he advisor also assesses various risks in a client’s portfolio before making investment decisions.

Effects of Account Aggregation

Many aggregation services offer direct data connections between brokerage firms and financial institutions, rather than using banks’ consumer-facing w𒅌ebsites. Clients give financial institutions their consent by providing personal information for the aggregate services.