Account Aggregation

Account aggregation allows you to view all your online accounts on a single website. This could include your current account, savings and investments, mortgage, credit cards, personal loans and reward schemes, such as supermarket reward points or Air Miles. Account aggregators enable you to collect all that information onto one web page. You log onto a website, enter a user name and password and view information from each website collectively - although each account will still have its own user name and password.

Firms offering account aggregation take the information from other websites where you have accounts. One example of this is 'screen scraping'. The firm operating the account aggregation service uses your security information to provide you with access to your other accounts.

Account aggregation has been around in the USA since early 2000 and was going to be the next big thing in online banking here in the UK. Citibank launched the first aggregation service in the UK in September 2001. But so far only a handful of firms offer account aggregation. None charge for the service or even restricts the number of visits you can make each month.

If you are considering using account aggregation you should always check the authenticity of the account aggregator. Only input your passwords and PINs if you trust the site. Other basic rules to remember are never to sign up for account aggregation from an email and never to disclose your passwords, either for the underlying sites or for the aggregation service.

Most aggregators use what is known as client-side technology. This means that your various account log in details are stored on your own PC. To use such a service you need to download a piece of software - a digital safe - onto your PC. The limitation of client-side aggregation is that you may only use the PC onto which you have downloaded the digital safe to check your accounts.

Server-side aggregation retains your details on the aggregators server. However, such services have attracted criticism from a number of banks and other financial institutions.

In fact some banks say that if you do give your security details to an aggregation service provider, you will be in breach of the conditions that govern the operation of your account. If you enter your security details into aggregation service software, you may also find yourself in breach of the conditions (see our guide to Online Banking ).

However, unless your bank specifically warns against it, people wishing to take advantage of account aggregation may find it a helpful tool in managing their finances more effectively. But you must remember that there are risks involved in disclosing security information such as passwords or PIN numbers.

Be aware also that the Financial Services Authority (FSA) does not regulate the provision of account aggregation services. You may not have access to the Financial Ombudsman Service (FOS) or the Financial Services Compensation Scheme (FSCS) .

Before signing up with an account aggregation service, ask the following questions and consider how comfortable you feel with the answers.

Questions to ask about account aggregation:

If I give the account aggregator my passwords, will I break the terms and conditions of my other online accounts?

Check with the firms where you hold your online accounts. If you do break their terms and conditions you could be liable for errors or frauds on your account however they occur.

How will the account aggregator use information about me?

It could be sold on to other firms for marketing purposes - check the account aggregator's privacy policy before you join.

What steps will the account aggregator take to ensure my passwords and log on details are held securely?

Check on the account aggregator's website what steps it has taken to ensure its systems meet high security standards - ask if you're unclear.

If there is a security failure and money is lost, data corrupted or private information disclosed, who will be responsible for putting things right and compensating me for any loss?

Check out with both the account aggregator and your online account firms how they view their responsibilities in the event of something going wrong.

Do my online account providers allow account aggregators to log on to their computers to access and take my information?

Check the terms and conditions of your online account providers - ask if you're unclear.

What happens if things go wrong?

Check with the account aggregator and your online account providers what they'll do to sort out any problems which might occur. Remember, the Financial Services Authority (FSA) does not regulate the provision of account aggregation services. You may not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme.

Last Updated: February 2007 © Moneyextra.com

Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.