The Business Case for Data Aggregation


Envestnet Data & Analytics commissioned Forrester Consulting to conduct a Total Economic Impact (TEI) study to evaluate the potential financial impact of Envestnet Data & Analytics Data Aggregation on financial institutions. The goal was simple, to better understand: Is Envestnet Data Aggregation worth the investment?

Turning data disruption into a differentiator

To better understand the benefits, costs, and risks associated with investing in Envestnet Data Aggregation, Forrester interviewed a small group of executives with personal experience using the solution. In each case, the interviewees noted how their organizations used third-party data aggregation tools prior to using Envestnet Data Aggregation. For many, those solutions were outdated, ineffective and yielded limited success, leaving early adopters with technology interface issues and a data aggregation solution that was disconnected from other digital banking initiatives. On top of that, executive management did not support the solutions due to the ultimate value of aggregation being unclear. These legacy tool vendors lacked a clear vision for future digital banking product needs, hindering growth for both clients and their accounts.

After completing the interviews and applying its risk-adjusted TEITM methodology, Forrester’s analysis made a clear case for the potential of a significant ROI when using the Envestnet Data Aggregation solution.

Study identified five quantifiable benefits of Envestnet Data Aggregation

Forrester’s analysis concluded that Envestnet D&A Data Aggregation has the following three-year financial impact:

  • 416% ROI
  • 20% annual growth
  • Payback in under six months

The study unveiled five key quantifiable benefits that were risk adjusted over three years:

  • Increased affiliate / reseller revenue (+$5.1M) – With more connected data, wealth managers gain greater visibility into the potential need for additional personalized services (e.g., loans, credit cards, tax, life insurance, annuities, etc.) and are more likely to identify these to benefit their customers and grow AUM.
  • Retention (+$23.9M) – Retention of customers in retail banking accounts and wealth management improves incrementally because Envestnet D&A Data Aggregation’s financial data and related analytics support both in a unified solution.
  • Increased wallet share (+$15.3M) – Due to more efficient aggregation of financial data, Forrester’s analysis found that organizations gain increased visibility into assets that are held away. This allows them to compare services for external assets and design a solution to bring those assets in-house.
  • Wealth management conversion (+$37M) – With more comprehensive segmentation, organizations have greater visibility into personal financial health profiles. This enables them to identify non-managed accounts that could benefit from wealth management and to accelerate account conversion.
  • Reduced wealth onboarding costs (-$35M) – Replacing paper and labor-intensive onboarding efforts, Envestnet Data Aggregation enables greater efficiency and automation, so the organization’s account managers realize a significant increase in productivity and time savings.

Findings also highlighted unquantifiable benefits

The study also identified several benefits of using Envestnet Data Aggregation that were not easily quantifiable, but still impactful. They include:

  • Technology interface flexibility. The study found that Envestnet Data Aggregation allows organizations to access and control the customer experience with an API, offering Envestnet Data Aggregation to facilitate this critical interaction between the composite and its accounts.
  • Increased quality of aggregation insights. The enhanced ability to interpret customer-specific aggregated data leads to the better segmentation of customers for graduation to wealth management or additional value-added services.
  • Highly communicative and collaborative product planning. Envestnet Data Aggregation internal solution experts are highly consultative in addressing an institution’s data aggregation experience and environment, and design novel digital banking products leveraging existing data capabilities.
  • Pricing and contracting philosophy that enables scale and growth. Tiered pricing algorithms allow a client to realize significant scale in data aggregation, motivating them to explore novel uses of the data in new product development, while also gaining cost efficiencies.

Study provides framework for leaders to evaluate their own institutions

Is Envestnet Data Aggregation worth the investment? Although Forrester makes no assumptions as to the potential ROI that other organizations will receive, the study does provide a framework for financial institutions to use with their own estimates. The data shows the impact the shift can make for an institution. For a deeper look into what we’ve talked about here, the full customer journey, and an analysis of costs, explore the full study here.

For years, Envestnet has empowered businesses to deliver better services via leading-edge data and data intelligence tools. In the past, you may have partnered with Yodlee, Harvest,, or Truelytics. Today, we’re bringing these offerings under one entity to better serve our customers: Envestnet Data & Analytics. Visit to connect with us today.

The information, analysis and opinions expressed herein are for informational purposes only and do not necessarily reflect the views of Envestnet. These views reflect the judgment of the author as of the date of writing and are subject to change at any time without notice. Nothing contained in this piece is intended to constitute legal, tax, accounting, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type.


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