Today, our financial data is scattered across lots of banks, apps, and platforms – keeping track of it all can be tough. Account aggregators help by bringing information from different places together, so users can see everything in one place and stay in control of their data. This idea represents a real shift in finance – moving away from closed-off systems towards a more open, user-focused world that encourages transparency, connection, and digital independence.
Account aggregator – a definition
An account aggregator acts as a digital link between banks, insurers, and other financial service providers. It enables financial data to be shared securely and in compliance with regulations – always with the customer’s permission and on their behalf. This makes it possible to bring together information from different sources, such as bank accounts, loans, or insurance policies, and share it purposefully, for example, to speed up a loan application. Importantly, the account aggregator does not store any financial data itself but simply ensures its safe transfer between parties.
How an account aggregator works
- The customer gives their consent: The process always begins with the user explicitly agreeing to share their data using a dashboard.
- Next, the data is brought together: The account aggregator collects the required financial information from different financial institutions, such as banks, insurers, or investment firms.
- The data is then passed on: The collected data is encrypted and securely sent to the company that has requested it, such as a bank reviewing a loan application.
- The aggregator stays out of the way: The account aggregator only transfers the data and doesn’t store it. It acts as a safe, digital “channel”.
- Customer control: The user decides which data they share and with whom, and always stays in control.
Core functions of an account aggregator
- Consolidated overview: Instead of having to log in to several banks and financial service providers separately, users receive a unified, up-to-date view of their entire financial situation.
- Data exchange: The account aggregator acts as a secure broker for exchanging data between financial institutions (called Financial Information Providers, or FIPs) and those who use the financial information (FIUs), such as banks issuing loans.
- User consent: Data is only brought together with the customer’s explicit agreement. The user always has control over which data is shared and with whom.
- Security and data protection: The aggregator usually does not store sensitive customer data. Information is encrypted and securely transferred from one provider to another, without the aggregator seeing it.
- Use of Open Banking: Many aggregators use the “Open Banking” principle. This means financial institutions have to share customer data over secure APIs when the user wishes.
Benefits of account aggregators
- Simplified documentation: Customers no longer need to collect and submit countless physical documents.
- Faster processing: Financial institutions can access real-time data, which speeds up application reviews.
- Secure data exchange: The entire process happens digitally and securely, with encrypted data, reducing the risk of data leaks.
- Better overview: Customers can get a comprehensive view of all their finances in one place.
Position in the financial world
Account aggregators play an important role in modern financial technology. They are key to developing new services and make it easier for people to keep control of their financial data and benefit from innovative offerings. In many countries, account aggregators are regulated by the government to make sure consumer data is properly protected.
