Definition: Aggregation is used in regular billing and allows the user to view his or her credit status on one platform. The goal of the aggregator is to give consumers more efficient access to their financial data, making financial planning more user-friendly.

Aggregation occurs when traders combine their individual (i.e., individually held) positions to form larger aggregations. Once an aggregate is created, it can be submitted to the futures exchange, where it may be bought or sold by other traders. As more data has been accumulated for a given period, it can be used to improve the ability of computer systems to monitor and analyze large quantities of data in a much shorter amount of time. This allows traders to react rapidly to market trends.

Aggregation is an attractive feature when processing credit card transactions for a small business or individual paying off debt. It increases the overall efficiency of the business by allowing advisors to discuss their client’s finances with one another in a cleaner fashion resulting in greater client satisfaction and lower total costs for both parties. While aggregated payments are not a new development, they have become more popular as companies and individuals have become more familiar with utilizing them for all types of credit transactions.

In the investment management industry, aggregators provide investors and their advisors with a centralized view of the investor’s entire financial situation, including daily updates on account status, balance, and payment history, as well as information about investments made by others, making it easier for investors to plan and execute strategies. Typical uses of aggregators include providing quick access to funds for client purchase positions in troubled securities, reducing brokerage analysis time and costs, and providing data for risk management and planning purposes.

Aggregation software helps financial planners analyze a client’s total assets, liabilities, and net worth. The software evaluates a current net worth estimate against assets held in various accounts and reflects any differences. For example, if an account has appreciated, but you haven’t yet entered into a contract to buy more of it, the software may tell you that you aren’t worthy of buying more of it yet. 

Account Aggregation is the process of analyzing an existing client’s account and proposing solutions or actions that can be taken to improve or expand it depending on the overall financial picture presented. This analysis can come from analyzing data from a variety of different places and analyzing client behavior.

Account aggregation is helpful for clients in numerous ways. These include helping you prevent payment days from accruing, freeing up additional budgets for essential items on your list (like a down payment on that dream home or big purchase), and giving you instant visibility into overall account status (credit limit, credit utilization, and more) by aggregating your accounts, which immediately gives you access to all the essential information.

Account-aggregation technology helps financial advisors work with clients on personalized, low-cost solutions that improve their overall financial readiness. As more customers use financial services, advisors have more opportunities to learn about their clients and their goals. As a result, the quality of service providers can improve as well. In addition, a closer relationship with customers can lead to a better overall customer experience and a resulting increase in brand loyalty.

Aggregation is a fast-growing industry. It is used by small to large businesses, personal financial advisors, and consumers looking to remain informed on what’s going on in the financial world. For example, recent economic events such as the global recession and the sub-prime mortgage crisis have highlighted the need for quick, reliable information on credit cards, mortgages, and other financial products. The aggregators provide this information to their clients free of charge – without revealing any personally identifiable information.