Why and How to Get Started with Data Aggregation: Part II – Communicating the Benefits to Your Clients

You may have heard from your peers that aggregating data on held-away accounts is an excellent way to increase AUM and revenue. Or perhaps you’ve seen its AUM-boosting capabilities for yourself. The questions are: How do you market data aggregation to your clients? How do you convince them of the many benefits it offers them that may not be available from competitive firms? There are four interrelated points you’ll want to make:

  • Your clients get a total financial picture. Your clients want to see a consolidated report of all their financial holdings. This is not always possible if you are only getting data monthly. It also requires manual updating of accounts and can be very time consuming. With data aggregation, your clients will appreciate your ability to produce accurate and timely reports that reflect their total financial picture whenever they decide to call or meet with you.

  • Your clients enjoy the peace of mind of knowing that all of their accounts are being monitored daily—especially important in times of economic turmoil.  In today’s uncertain environment, with the market fluctuating so quickly, your clients want to know that you are looking at their full financial picture on a daily basis. Time is of the essence, so being up-to-date is especially critical. Furthermore, as an added benefit, you can provide this daily monitoring without your clients having to give you their personal login credentials to their accounts.

  • You can offer more accurate and timely advice on the holdings within your client’s 401k, other retirement accounts and held away accounts—all without having to wait for statements. The largest portion of your clients’ assets may be in their 401k accounts or other retirement accounts that you do not have access to or can only see once a month via a statement. Let your clients know that when you get your data aggregation daily downloads, you will be able to monitor these assets more carefully. Furthermore, considering that you may end up doing more work on these held away assets than on the investments you manage directly, your clients will likely agree that you deserve to be compensated for this work.

  • Your clients benefit from better diversification—and an asset allocation that’s based on all assets, not just a subset. When you build an Asset Allocation based on your clients’ Investment Policy Statement, it’s most advantageous when you can take all of their assets into consideration. Quite simply, to create an allocation in your client’s best interests based on their financial goals and risk tolerance—and to provide the comprehensive advice that backs it up— you need to be able to see the entirety of their assets. Your clients will appreciate it when you add this all-inclusive allocation capability, without them having to respond to any more requests to produce statements and mail them to you.

Please feel free to ask ByAllAccounts for additional documentation on how to tell your clients about the benefits of account aggregation and why you (as their trusted advisor) deserve to be compensated for the time you put into doing it. We can also provide you with Security Privacy statements that will help alleviate any security concerns your clients may have. 

To learn more on the value of aggregation for your clients, check out this video:

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