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E-Banking - Banking on the Internet

Aggregation

Account aggregation lets you view your account information from multiple sources on one Internet Web site instead of having to visit several sites. Financial, credit card, securities, frequent flyer, and even weather forecast information can be included on an aggregation site. You may also be able to conduct transactions or obtain investment advice on an aggregator's site. Banks and other companies supplying such services must use your IDs and passwords to assemble this information.

How does aggregation work?
What questions should I ask before I use an aggregator?

How does aggregation work?
You provide the aggregator with account numbers, associated security codes, or other passwords issued by the companies holding your accounts. The aggregator can then collect your financial information-even without the consent of the institution holding the consumer's account. If the account-holding institution also consents, however, that institution may relay your account information directly to the aggregator.

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What questions should I ask before I use an aggregator?

Will providing my password to the aggregator violate my agreement with my bank? Some on-line bank agreements require that your do not reveal your password to anyone
What security precautions does the aggregator take? These are often described on the aggregator's Web site or in the service agreement. The precautions may include encryption
What is the aggregator's privacy policy? Read the privacy policy on the aggregator's Web site carefully; it may include tracking your Web-browsing habits and sharing your financial information with others
Find out how to reach the right person with service questions; often that information is posted on the aggregator's Web site
Be sure to read the aggregation service contract carefully; it should specify the aggregator's liability, or yours, for unauthorized transactions. This is especially important if your aggregation service includes funds transfers. If the aggregator is a bank, your liability for unauthorized on-line funds transfers from your accounts would be limited if you informed the bank of the problem in a timely manner
Consider that you may have limited support from government regulators

Consumer complaints against banks may be submitted to federal bank regulatory agencies or state banking departments. An aggregator that is not a bank is subject to the jurisdiction of the Federal Trade Commission.

Find out all the costs of the aggregation service

An aggregator's services are typically bundled with other products and may be free initially. Some aggregators may present you with advertisements rather than charge for basic services. You should read the aggregation agreement carefully before you sign it for costs and all other "terms and conditions." In particular, you should find out how and when you will be notified of any changes in the terms of the agreement.

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