The State of the Account Aggregation Industry

January 21, 2002

Abstract

Boston, MA, USA January 23, 2002

   

In its latest report, Celent Communications clarifies the account aggregation industry's relationship to financial institutions and to companies who are considering their position in this market.

Two years ago, account aggregation made headlines in Web-based financial services. Since then, account aggregation has evolved from a consumer-direct service geared toward increasing a Web site’s stickiness to a tool used by financial institutions to enhance their service offerings.Although portals had been considered most likely to use account aggregation as a tool to drive traffic to their sites, implementation of account aggregation solutions have proven surprisingly popular among financial institutions as well.

"Account aggregation presents a tremendous opportunity for financial institutions to gain a more comprehensive picture of their customers," comments Ariana-Michele Moore, author of the report. "This data allows financial institutions to target their marketing campaigns more precisely and to offer customers better and more personalized services."  

Despite this promising upside, many unresolved issues still dog the industry. Among the most important are: preserving customer privacy, adhering to regulatory guidelines, the need to support global expansion, technical constraints, and uncertainty as to the overall direction of the market. In this report, Celent Communications gives a brief overview of recent developments in the industry, and outlines the challenges facing this market. The report also analyzes the vendors of account aggregation, where consumer interest lies, and how account aggregation is expanding outside North America.

 

“The account aggregation market has been a truly interesting market to watch over the past year. The market has been plagued by lawsuits, protests, and fear and uncertainty due to widespread dot-com failures. As a result, we have seen several shifts in business models, as firms leave the account aggregation market and others begin to embrace the service,” says Moore.

A Table of Contents is available online.

of Celent Communication's Retail Banking research service can download the report electronically by clicking on the icon to the left.

        

Send mail to info@celent.com with questions or comments about this Web site.

 

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

Boston, MA, USA  January 21, 2002

Return to report Abstract

EXECUTIVE SUMMARY 4
INTRODUCTION 6
  User Adoption  8
  Global Expansion 9
  Unlocking the Wireless Opportunity 10
CHALLENGES FACING INDUSTRY 12
  Technical Difficulties 12
  Likelihood of a Positive ROI 13
  Safeguarding Privacy/Enhancing Service 14
  International Regulatory & Technical Barriers 16
SERVICE EVOLUTION 18
  Features & Functionality 18
  Aggregation & Financial Advisors 19
  Retail vs. Wholesale Aggregation 19
  ASP vs. In-House Model 19
  Technical Difficulties 12
  Cost 20
CHANGE IN COMPETITIVE LANDSCAPE 21
SELECTED SOLUTION PROVIDERS 23
  Accountunity 23
  Adhesion Technologies 24
  ByAllAccounts 25
  CashEdge 25
  eWise Systems 25
  Parkers' Edge 27
  Tarang 28
  Teknowledge 28
  uMonitor 29
  Yodlee 30
COMPARING THE SOLUTION PROVIDERS 31
FUTURE OUTLOOK 34

 

        

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