In recent years, the number of budget coaching applications has soared. Since PSD2 came into force, sharing banking information via bank APIs has become simpler and more secure. Despite this directive, account aggregators have not met with the success we had hoped for.
Still little-known features and management tools
Account aggregators offer their customers a single interface for all their bank, payment and savings accounts. The aim: to help users manage their budgets more effectively. These new applications replace those offered by banks with fewer functionalities. Customers can access services such as expense categorization, personalized alerts, projected balances, transaction histories and clear summaries and graphs. To take advantage of these services, simply download the chosen application, fill in the details of the bank accounts to be integrated. They can then be consulted by entering a single password.
The best-known aggregators on the market are Linxo, newly acquired by Crédit Agricole, Bankin', with over 4 million users, Yolt by ING, Max from the Crédit Arkéa group, and LaFinBox. Despite numerous strategic partnerships with banks, the services offered by account aggregators remain little-known.
What are the long-term prospects?
A 2019 study by Square reveals that 55% of 18-24 year-olds are aware of the services offered by account aggregators, compared with 7% of 25-34 year-olds and just 1% of 25-49 year-olds. This lack of awareness of account aggregation is explained by the fact that 67% of users are single-banked. In this situation, there is no point in using these tools. The study also shows that the best-known and most-used application is "Gérer mes comptes" (23% aided awareness), followed by Bankin' (19%), Linxo, Nestor and Moneyboard (8-10%).
The entry into force of PSD2 has strengthened the protection of account aggregators, with the introduction of secure data-sharing bridges. For their part, banks must open up part of their information systems to third parties, organizing test phases with future API consumers. Account aggregators have yet to take advantage of these regulations. These tools are still in the early stages of their technological performance.
To stand out from the crowd, these players are offering new pricing models and expanding their catalog of functionalities. In the next few years, Artificial Intelligence should enable us to optimize use cases by, for example, anticipating debit balances or informing customers of unusual banking movements. These ultra-personalized services should contribute to the boom in budget coaching applications.