Financial Account Aggregator: The Key to Staying On Top of Your Money
One of the keys to getting ahead financially is to ensure that you always have a keen eye on where your money is going. Like an air traffic controller in the tower at the airport, being able to direct your financial comings and goings can help to mitigate chaos and prepare you for success.
So, what’s the best way to stay on top of your money? Enter the financial aggregator — a system to integrate every single one of your accounts into a solitary, comprehensive tool.
Let’s get into it below.
What is a financial aggregator?
Wouldn’t it be nice to see your balances and transactions across all your checking accounts, savings accounts, loans, credit cards, and investments — even in different financial institutions — without having to switch apps? Guess what — you can!
A financial aggregator is a way for you to fully integrate all of your banking, savings, and investment accounts into one place. These are usually apps or desktop programs that let you import your financial information and connect each source, giving you the ability to view your financial data — like bank accounts, credit cards, savings, or even your mortgage — all under one roof. And in real time!
4 reasons why you should use an aggregation system
Everyone’s situation is different — it’s never a one-size-fits-all solution to financial freedom. However, using a financial aggregation platform is one of those rare exceptions — nearly everyone can benefit from being able to view all their financial data in one place.
Here are some of the main benefits of a financial account aggregation system.
1. It can save you time
Time — the most valuable of all commodities.
Let’s be honest, managing finances across multiple financial institutions is time-consuming. Add in investments like brokerage accounts, 401(k)s, or mutual funds, and it can get downright difficult to keep tabs on your money — necessitating a serious time commitment. If you have a giant portfolio and bank at multiple institutions, you might want to measure the time it takes to check your balances with a sundial.
One of the biggest advantages of using a financial aggregator is saving you time. All the apps, the sign-in screens, adjusting to the nuances of each interface … they’re all bypassed entirely when you use a financial aggregation system. By aggregating all your online banking and account information in one place, you’ll have more time to do the things you love.
2. Automation makes it easy
Another excellent advantage of using a financial aggregator is the potential to automate your finances. How you choose to do it is up to you, but a few common ways in which automation comes in handy is through categorizing and tagging expenses — which is especially helpful when budgeting. Top-tier financial aggregators will automatically tag each transaction by category, taking the tediousness out of budgeting!
You can also use automation to flag any transactions that come through your account over a certain threshold, safeguard against any surprise (or fraudulent) charges, or keep you on track toward your savings goals. By using automation, you don’t have to worry about hawkishly monitoring your account on a day-to-day basis — the app can do that for you.
3. You can get financial clarity
While not entirely elusive, clarity can be harder to find while you’re in the midst of a virtual wild-goose chase to figure out which bills are going to hit which account and when. By using a good financial aggregator, not only will you have an easier time directing traffic, but you can also get insights to make better financial decisions.
Most people have many types of accounts from different financial institutions. It’s not uncommon to have a checking and a savings account, credit cards, a 401(k), a brokerage account, an IRA, and maybe a car or home loan. Once you have the ability to see how your money is coming and going, how each investment is performing, and how your account balances are changing, you’ll be able to make more informed decisions.
A financial aggregator can help you identify patterns, see any missteps in your plan, get an exact figure of your net worth, and, ultimately, get a clearer view of what you’re doing financially.
4. You can share your data with peace of mind
One of the most helpful aspects of using a financial aggregator is secure data sharing with someone you trust. While it’s never advisable to share your login information, your standard banking and investment apps rarely allow you to export useful data — unless you’re prepared to parse through volumes of .CSV files!
A good financial aggregator tool, on the other hand, can help you share and export your account data, making it easy to combine your finances with your partner’s, prep for tax season and maximize your deductions with your accountant, or share your investment portfolio and performance with a financial advisor.
5 questions you should ask about a financial aggregator
While many financial aggregation platforms offer a similar experience, not all are created equal! Here are the top five things to look for when considering a financial aggregator.
1. Are there ads or hidden fees?
Ahh, ads — the best, right?
If you’re anything like us, you’re not in love with ads (especially when you’re working on something as important as your finances), and the idea of your financial data being sold to advertisers is more than a little unnerving!
Another sneaky feature you’ll want to avoid are hidden fees. There are plenty of aggregators out there that offer a freemium platform, where the base service is free, but any additional (read: helpful) features will end up costing you money — and it’s not advertised outright.
Unfortunately, not all financial aggregators are free of ads and hidden fees — but Quicken Simplifi and Classic are. No matter where you are on your financial journey, Quicken has something for you.
2. Is it easy to use?
This is definitely subjective, but generally speaking, it’s better to have a financial aggregator that doesn’t require a PhD in Applied Economics from Wharton.
Ideally, you want a financial app that’s complex enough to allow for all the customizations you need for your budgeting, savings, and investment goals, but with a simple interface that won’t intimidate anyone who isn’t a software engineer!
Some questions to ask yourself when comparing ease of use among different aggregators:
- Is it easy to log in?
- Can I navigate through the app without much difficulty?
- Are the functions easy to find?
- How comprehensive is the financial service?
- Can I edit transactions and label them to fit my needs?
- What customization options are available?
3. Does it have the connections you need?
Along with ease of use, a financial aggregator becomes highly valuable when it can connect to all of your accounts. When deciding on which system to use, you’ll want to determine whether or not the aggregator can connect to the institutions where you do your banking, investing, and saving, and also integrate with any open loans or credit cards you may have.
With the ability to connect to over 14,000 financial institutions across the U.S. and Canada, Quicken can help you bring every one of your accounts into frame. On the slight chance that Quicken doesn’t yet connect with a financial institution you use, you can still manually import the account, giving you total visibility over all your finances.
4. How good is their AI assistance?
Recently, AI has exploded onto the scene as a household word. As exciting as these technical advancements are, some service providers in the fintech industry claim to leverage AI to help you manage your finances even though the system is still questionable at best — using industry buzzwords like “AI” and “machine learning” to sell a product that isn’t ready for primetime.
When it comes to your money, you want reliability — so be sure to read the fine print about those AI claims and ask other users about their experience with the product.
5. Is the safety and security robust?
It’s no secret that cyber crime happens every day and that finance companies are a tremendous target. As a consumer, you need to be sure that your financial data is safe — it’s crucial to find a system that takes security seriously. Quicken boasts a robust 265-bit encryption — the same standard that banks use across the globe.
Choosing the aggregator that’s right for you
No matter where you are in your financial journey, Quicken can help. With a comprehensive suite of products and services, along with a 40-year history as a top leader and innovator in the personal finance industry, Quicken is the gold standard of financial account aggregators.
Whether you’re a young adult in need of a way to learn about financial management, or a serious investor with a diverse portfolio and some property rentals to manage, Quicken has the bases covered for all your financial planning needs.
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