Account Aggregation Hits Consumer Hot Buttons, But Still Lacks Compelling Business Rationale

Business Wire, June 20, 2001

Business/Technology Editors

WALTHAM, Mass.--(BUSINESS WIRE)--June 20, 2001

Gomez study uncovers positioning and usability challenges to be

addressed in establishing consumer value

Account aggregation is gaining momentum in financial services, yet significant changes need to occur before widespread consumer adoption is achieved, according to a new study from Gomez, Inc., the Internet quality measurement firm.

The study, Online Account Aggregation: Pulling It All Together, provides a comprehensive evaluation of technology and service providers, blending primary market research, Web site performance analysis, Scorecard rankings and best practice assessments.

Account aggregation promises to streamline consumers' financial and lifestyle management via the Internet. Banks, brokers and portals, meanwhile, are adopting aggregation platforms to attract and keep consumers wanting to manage their financial assets online.

An Account Aggregation Scorecard, prepared for this study, shows market leader Yodlee, Inc. taking first place and powering many of the other top placing offerings. But the race for aggregation ubiquity is far from over. The study identifies key elements that enhance aggregation usability and improve the overall consumer value proposition, but also points out key stumbling blocks to its widespread adoption. "For firms to succeed, they will need to provide advanced analytics and transactional functionality that in turn will depend on robust data collection," explains Paul Jamieson, director of banking and payment services. "Today, few if any are doing so."

The study also shows that consumer awareness, data collection methodologies, security and privacy concerns and integration with trusted financial relationships all remain challenges:

-- Only 13% of online users are aware of account aggregation, though 19% express interest once informed of what these services provide.

-- Screen scraping, the most widespread data collection approach, poses risks due to poor data integrity, limited historical information and the lack of an audit trail. Gomez believes that although industry initiatives are currently addressing these issues, consumer demand for data integrity will ultimately determine the fate of screen scraping.

-- After awareness, security and privacy concerns are the most inhibiting factors to interest in aggregation. However, such concerns will erode as firms better promote security inherent in their offerings.

-- Over 25% of consumers are likely to embrace aggregation when it is sponsored by their primary bank and integrated into the bank's overall offering. Further, 28% of high net worth investors are likely to switch institutions if their firm does not offer aggregation services.

The Gomez study is the first to rank players in this market. Beyond Yodlee's direct-branded service, 17 offerings were studied, including those from American Express, Citicorp, Fidelity, Morgan Stanley and Wells Fargo.

To purchase the study contact Mark Rudolph at (781) 768-2183.

Gomez is the Internet quality measurement firm, providing e-commerce customer experience measurement, benchmarking and customer acquisition services to help firms build successful e-businesses and guide consumers in transacting online. For more information, visit www.Gomez.com.

Gomez, Gomez.com, GomezPro, Gomez Performance Network, Performance Media and Internet Quality Measurement are trademarks and/or service marks of Gomez, Inc.