A ByAllAccounts survey of advisors conducted in June showed that financial account aggregation was used, daily in many cases, in small firms to populate their technology solutions; it was ranked as “Very Important” or “Important” by 88.1% of respondents.
Account aggregation collects and consolidates data on a multitude of accounts from many custodians, and transforms that data into a consistent format for use in a back-office system for use in financial analysis, reconciliation, and reporting. According to ByAllAccounts, account aggregation “enables advisors to efficiently monitor and advise on held-away assets, create a comprehensive quarterly report, and bill for that value-added service.”
The Advisor Technology Solutions Survey of more than 500 advisors in a wide range of office types that included RIAs (53.9%), wirehouses (8.8%), independents (16.6%), and others, asked for the top five essential technology solutions. Performance management/performance reporting led the list at 83.6%, followed by CRM tools/client reporting (71.2%), trading (57.4%), financial/estate planning (56.8%), and rebalancing/asset allocation (51.2%).