Data aggregator
Encyclopedia
A data aggregator is an organization such as Acxiom
and ChoicePoint
involved in compiling information
from detailed databases on individuals and selling that information to others.
es, as well as to local
, state
, and federal government agencies. This information can also be useful for marketing
purposes. Many data brokers' activities fall under the Fair Credit Reporting Act
(FCRA) which regulates consumer reporting agencies
. The agencies then gather and package personal information into consumer
reports that are sold to creditor
s, employers, insurers, and other businesses.
Various reports of information are provided by database aggregators. Individuals may request their own consumer reports which contain basic biographical information such as name, date of birth, current address, and phone number. Employee background check
reports, which contain highly detailed information such as past addresses and length of residence, professional
licenses
, and criminal history, may be requested by eligible and qualified third parties. Not only can this data be used in employee background checks, but it may also be used to make decisions about insurance coverage, pricing, and law enforcement. Privacy
activists argue that database aggregators can provide erroneous information.
to consolidate and manipulate information has a new application in data aggregation, also known as screen scraping. The Internet gives users the opportunity to consolidate their usernames and password
s, or PINs. Such consolidation enables consumers to access a wide variety of PIN-protected website
s containing personal information by using one master PIN on a single website. Online account providers include financial institution
s, stockbrokers, airline
and frequent flyer and other reward programs, and e-mail
accounts. Data aggregators can gather account or other information from designated websites by using account holders' PINs, and then making the users' account information available to them at a single website operated by the aggregator at an account holder's request. Aggregation services may be offered on a standalone basis or in conjunction with other financial services, such as portfolio
tracking and bill
payment provided by a specialized website, or as an additional service to augment the online presence of an enterprise established beyond the virtual world. Many established companies with an Internet presence appear to recognize the value of offering an aggregation service to enhance other web-based services and attract visitors. Offering a data aggregation service to a website may be attractive because of the potential that it will frequently draw users of the service to the hosting website.
arising from data aggregation activities, potential security
problems, infringement on intellectual property
rights and the possibility of diminishing traffic to the institution's website. The aggregator and financial institution may agree on a data feed arrangement activated on the customer's request, using an Open Financial Exchange (OFX) standard to request and deliver information to the site selected by the customer as the place from which they will view their account data. Agreements provide an opportunity for institutions to negotiate to protect their customers' interests and offer aggregators the opportunity to provide a robust service. Aggregators who agree with information providers to extract data without using an OFX standard may reach a lower level of consensual relationship; therefore, "screen scraping" may be used to obtain account data, but for business or other reasons, the aggregator may decide to obtain prior consent and negotiate the terms on which customer data is made available. "Screen scraping" without consent by the content provider has the advantage of allowing subscribers to view almost any and all accounts they happen to have opened anywhere on the Internet through one website.
transactions, balances, securities transactions and portfolios, and travel
history and preferences. As the sensitivity to data protection considerations grows, it is likely there will be a considerable focus on the extent to which data aggregators may seek to use this data either for their own purposes or to share it on some basis with the operator of a website on which the service is offered or with other third parties.
Acxiom
Acxiom is a global interactive marketing services company that uses consumer data, analytics, information technology, data aggregation, data integration, and consulting solutions to help companies conduct direct marketing programs...
and ChoicePoint
ChoicePoint
ChoicePoint was a data aggregation company based in Alpharetta, near Atlanta, Georgia, United States, that acted as a private intelligence service to government and industry...
involved in compiling information
Information
Information in its most restricted technical sense is a message or collection of messages that consists of an ordered sequence of symbols, or it is the meaning that can be interpreted from such a message or collection of messages. Information can be recorded or transmitted. It can be recorded as...
from detailed databases on individuals and selling that information to others.
Description
The source information for data aggregators may originate from public records and criminal databases; the information is packaged into aggregate reports and then sold to businessBusiness
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
es, as well as to local
Local government
Local government refers collectively to administrative authorities over areas that are smaller than a state.The term is used to contrast with offices at nation-state level, which are referred to as the central government, national government, or federal government...
, state
State government
A state government is the government of a subnational entity in a federal form of government, which shares political power with the federal or national government. A state government may have some level of political autonomy, or be subject to the direct control of the federal government...
, and federal government agencies. This information can also be useful for marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
purposes. Many data brokers' activities fall under the Fair Credit Reporting Act
Fair Credit Reporting Act
The Fair Credit Reporting Act is a United States federal law that regulates the collection, dissemination, and use of consumer information, including consumer credit information. Along with the Fair Debt Collection Practices Act , it forms the base of consumer credit rights in the United States...
(FCRA) which regulates consumer reporting agencies
Credit bureau
A credit bureau , or credit reference agency is a company that collects information from various sources and provides consumer credit information on individual consumers for a variety of uses. It is an organization providing information on individuals' borrowing and bill paying habits...
. The agencies then gather and package personal information into consumer
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
reports that are sold to creditor
Creditor
A creditor is a party that has a claim to the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property or service to the second party under the assumption that the second party will return an equivalent property or...
s, employers, insurers, and other businesses.
Various reports of information are provided by database aggregators. Individuals may request their own consumer reports which contain basic biographical information such as name, date of birth, current address, and phone number. Employee background check
Background check
A background check or background investigation is the process of looking up and compiling criminal records, commercial records and financial records of an individual....
reports, which contain highly detailed information such as past addresses and length of residence, professional
Professional
A professional is a person who is paid to undertake a specialised set of tasks and to complete them for a fee. The traditional professions were doctors, lawyers, clergymen, and commissioned military officers. Today, the term is applied to estate agents, surveyors , environmental scientists,...
licenses
Licensure
Licensure refers to the granting of a license, which gives a "permission to practice." Such licenses are usually issued in order to regulate some activity that is deemed to be dangerous or a threat to the person or the public or which involves a high level of specialized skill...
, and criminal history, may be requested by eligible and qualified third parties. Not only can this data be used in employee background checks, but it may also be used to make decisions about insurance coverage, pricing, and law enforcement. Privacy
Privacy
Privacy is the ability of an individual or group to seclude themselves or information about themselves and thereby reveal themselves selectively...
activists argue that database aggregators can provide erroneous information.
Role of the Internet
The potential of the InternetInternet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
to consolidate and manipulate information has a new application in data aggregation, also known as screen scraping. The Internet gives users the opportunity to consolidate their usernames and password
Password
A password is a secret word or string of characters that is used for authentication, to prove identity or gain access to a resource . The password should be kept secret from those not allowed access....
s, or PINs. Such consolidation enables consumers to access a wide variety of PIN-protected website
Website
A website, also written as Web site, web site, or simply site, is a collection of related web pages containing images, videos or other digital assets. A website is hosted on at least one web server, accessible via a network such as the Internet or a private local area network through an Internet...
s containing personal information by using one master PIN on a single website. Online account providers include financial institution
Financial institution
In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries...
s, stockbrokers, airline
Airline
An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
and frequent flyer and other reward programs, and e-mail
E-mail
Electronic mail, commonly known as email or e-mail, is a method of exchanging digital messages from an author to one or more recipients. Modern email operates across the Internet or other computer networks. Some early email systems required that the author and the recipient both be online at the...
accounts. Data aggregators can gather account or other information from designated websites by using account holders' PINs, and then making the users' account information available to them at a single website operated by the aggregator at an account holder's request. Aggregation services may be offered on a standalone basis or in conjunction with other financial services, such as portfolio
Portfolio (finance)
Portfolio is a financial term denoting a collection of investments held by an investment company, hedge fund, financial institution or individual.-Definition:The term portfolio refers to any collection of financial assets such as stocks, bonds and cash...
tracking and bill
Bill (payment)
A bill or invoice is a document requesting payment for an order previously supplied. Presentation of a bill is common practice on the part of credit card companies, utilities, and other service providers...
payment provided by a specialized website, or as an additional service to augment the online presence of an enterprise established beyond the virtual world. Many established companies with an Internet presence appear to recognize the value of offering an aggregation service to enhance other web-based services and attract visitors. Offering a data aggregation service to a website may be attractive because of the potential that it will frequently draw users of the service to the hosting website.
Legal implications
Financial institutions are concerned about the possibility of liabilityLegal liability
Legal liability is the legal bound obligation to pay debts.* In law a person is said to be legally liable when they are financially and legally responsible for something. Legal liability concerns both civil law and criminal law. See Strict liability. Under English law, with the passing of the Theft...
arising from data aggregation activities, potential security
Security
Security is the degree of protection against danger, damage, loss, and crime. Security as a form of protection are structures and processes that provide or improve security as a condition. The Institute for Security and Open Methodologies in the OSSTMM 3 defines security as "a form of protection...
problems, infringement on intellectual property
Intellectual property
Intellectual property is a term referring to a number of distinct types of creations of the mind for which a set of exclusive rights are recognized—and the corresponding fields of law...
rights and the possibility of diminishing traffic to the institution's website. The aggregator and financial institution may agree on a data feed arrangement activated on the customer's request, using an Open Financial Exchange (OFX) standard to request and deliver information to the site selected by the customer as the place from which they will view their account data. Agreements provide an opportunity for institutions to negotiate to protect their customers' interests and offer aggregators the opportunity to provide a robust service. Aggregators who agree with information providers to extract data without using an OFX standard may reach a lower level of consensual relationship; therefore, "screen scraping" may be used to obtain account data, but for business or other reasons, the aggregator may decide to obtain prior consent and negotiate the terms on which customer data is made available. "Screen scraping" without consent by the content provider has the advantage of allowing subscribers to view almost any and all accounts they happen to have opened anywhere on the Internet through one website.
Outlook
Over time, the transfer of large amounts of account data from the account provider to the aggregator's server could develop into a comprehensive profile of a user, detailing their banking and credit cardCredit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
transactions, balances, securities transactions and portfolios, and travel
Travel
Travel is the movement of people or objects between relatively distant geographical locations. 'Travel' can also include relatively short stays between successive movements.-Etymology:...
history and preferences. As the sensitivity to data protection considerations grows, it is likely there will be a considerable focus on the extent to which data aggregators may seek to use this data either for their own purposes or to share it on some basis with the operator of a website on which the service is offered or with other third parties.