NEW YORK - Offering account aggregation can be a good method of marketing a mutual fund family, however there are pitfalls that can undermine the benefits of the arrangement. That was the message conveyed by industry executives at a conference here earlier this month on mutual fund systems and technology sponsored by Marcus Evans of Chicago.
Account aggregation essentially combines information about several accounts of an individual investor, such as checking, savings, mutual funds, and 401(k)s, on a single website with a single password. The advantage for investors is a one-stop, full view of their financial account data. One of the advantages for the investment company is that it is a good marketing tool, according to Larry Lubin, CEO of FiTech of Toronto, a financial services online service company.