Concerns over security are still hindering customer interest in account aggregation services within the United States, according to a new report from Spectrem Group.
The report, "Account Aggregation: Magic or Mirage" cites estimates for account aggregation at under one million total users in the US, with usage within the affluent market at only five per cent. This compares with early estimates predicting 3.4 million users by 2001 and 9.52 million in 2002.
As well as security concerns, Spectrem blames lack of customer interest/knowledge for the low uptake.
Self-directed investors, those who make their own financial decisions without the assistance of an investment advisor, surprisingly had the least interest in account aggregation, despite their familiarity with the concept and technological savvy, says Spectrem. The research firm believes the low interest of this group may be due to a high comfort level with current tools and programmes or a general perception that aggregation will not meet their expectations.
"Financial companies offering aggregation must address the concerns of investors and effectively convey the advantages of this new technology," says Ann Mahrdt, director at Spectrem Group. "If account aggregation is going to catch on, individuals need to embrace the benefits of the service. The best way to accomplish that is through education and communication."