Four Factors of Superior Aggregation for Investment Use Cases
The financial industry is at the cusp of creating an open-data ecosystem for finance–one where banks and fintech companies work together to bring innovative, personalized financial services to the market. As data intermediaries between banks, fintechs, and consumers, aggregators play a critical role in providing connections and movement of data throughout the newly established financial ecosystem.
But Not All Data Aggregation is Created Equal
The way most financial data is aggregated is not well suited for investment use cases. That’s because most financial aggregation vendors are generalists that designed their aggregation process to accommodate as many different financial management use cases as possible.
In other words, generalist aggregators are adept at things like categorizing a particular credit card transaction as a grocery store purchase, but they lack the sophistication needed to enrich investment transactions to a quality suitable for reconciliation and performance reporting.
If you’re in the investment industry, this is obviously problematic.
What investment professionals and their clients need is data that’s retrieved, enriched, and formatted for investment use cases by investment specialists according to a process informed by a deep knowledge of industry-specific use cases. Only then does aggregated data truly help you grow your business, make more insightful decisions, and create extraordinary digital-first experiences. And only then can data serve as a single source of truth across all of your systems.
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