Although the need for account aggregation in financial services is nothing new, many firms have spent the last ten years dragging their feet when it comes to implementing software designed to streamline their digital client experience and improve each advisor’s efficiency. 

The biggest concerns? Data privacy and system slowdowns. 

But that all changed when application programming interfaces (APIs) came on the scene. This type of software provides account aggregation without the advisor having to know or access client login credentials – providing a solution many firms could work with.

The creation of the Financial Data Exchange (FDX) back in 2018 makes data aggregation even more appealing. The FDX is the result of several banks, data aggregators, and fintech companies partnering to establish an organization that could provide a framework for data sharing and privacy.

With increasing client demand for account aggregation, solid API software, and the FDX’s dedication to secure financial information, data aggregation is quickly gaining new momentum.

And if you’re an RIA, it should be central to your firm’s client experience. Here’s why.

The Importance of Data Aggregation

Despite a growing client need for more help managing their wealth, 78% of financial advisors reported not having access to their clients’ full financial picture. 

This system can lead to several problems. With limited information given to advisors, they’re not equipped to give the best possible advice to help reach investors’ goals. 

The road to complete client data starts with aggregation. For advisors to deliver the best possible service to their clients and build a positive client relationship, they need the full picture – without the hassle of manual data entry. 

Another bonus? Complete client data also gives your advisors a chance to find more opportunities to drive wallet share and produce additional revenue.

Skience Capabilities with Data CAR

Skience launched the Data Consolidation and Replication Module (Data CAR) in 2021 – a cloud-enabled data management system. 

Data CAR works by receiving client data from vendors into a centralized repository and then replicating it into Skience Financial Solutions (a FSC managed package) or SkienceONE. The repository can then be accessed through Skience’s Query Tool, providing users with access to all data received including historical positions and balances. 

Firms can even feed the data directly into Skience Financial Solutions (a FSC managed package) or SkienceONE, without custom software or any other integrations. 

Rather than requiring advisors to manage several third-party tech vendors, Data CAR offers a single data stream for firms to easily access client information.

The Benefits of Data CAR

With a 360-degree view of client information, Data CAR delivers:

  • True enterprise data management

With a simple front-end user interface, home office users can easily choose the fields and tables they want to see, allowing them to import and export custom views to and from Skience Financial Solutions (a FSC managed package) or SkienceONE, for a one time or recurring process.

  • Contextual views of financial account data

Data CAR provides contextual views based on custodian, clearing firm, annuity carrier or fund company and type of account to ensure that users have all relevant data for their clients and accounts at their disposal.

  • Custom data feed additions

Need a new data feed built for your organization? Skience’s team behind Data CAR can configure additional data sources to your specifications – so you don’t have to be dependent on software development cycles of any other solution provider.

Giving your advisors access to a complete view of their clients’ financial picture through Data CAR can help them deliver better experiences for their clients, without the long turnaround times often associated with standing up new data feeds.

Get Started with Skience

Want to learn more about how Data CAR can aggregate your client data and improve your ability to increase your firm’s wallet share? 

Click here to schedule a demo with Skience today.