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Data aggregation is the compiling of information from
databases In computing, a database is an organized collection of data stored and accessed electronically. Small databases can be stored on a file system, while large databases are hosted on computer clusters or cloud storage. The design of databases span ...
with intent to prepare combined datasets for
data processing Data processing is the collection and manipulation of digital data to produce meaningful information. Data processing is a form of ''information processing'', which is the modification (processing) of information in any manner detectable by a ...
.


Description

The United States Geological Survey explains that, “when data are well documented, you know how and where to look for information and the results you return will be what you expect.” The source information for data aggregation may originate from public records and
criminal In ordinary language, a crime is an unlawful act punishable by a state or other authority. The term ''crime'' does not, in modern criminal law, have any simple and universally accepted definition,Farmer, Lindsay: "Crime, definitions of", in Ca ...
databases. The information is packaged into aggregate reports and then sold to
business Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services). It is also "any activity or enterprise entered into for profit." Having a business name does not separa ...
es, as well as to
local Local may refer to: Geography and transportation * Local (train), a train serving local traffic demand * Local, Missouri, a community in the United States * Local government, a form of public administration, usually the lowest tier of administra ...
, state, and government agencies. This information can also be useful for
marketing Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to empha ...
purposes. In the United States, 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 creditors, employers, insurers, and other businesses. Finicity, a Mastercard company, is one of the major aggregators who complies with the FCRA, while most other data aggregators have chosen not to comply with this consumer protection law. Various reports of information are provided by database aggregators. Individuals may request their own consumer reports which contain basic
biographical A biography, or simply bio, is a detailed description of a person's life. It involves more than just the basic facts like education, work, relationships, and death; it portrays a person's experience of these life events. Unlike a profile or c ...
information such as name, date of birth, current address, and phone number. Employee
background check A background check is a process a person or company uses to verify that an individual is who they claim to be, and this provides an opportunity to check and confirm the validity of someone's criminal record, education, employment history, and oth ...
reports, which contain highly detailed information such as past addresses and length of residence, professional
licenses A license (or licence) is an official permission or permit to do, use, or own something (as well as the document of that permission or permit). A license is granted by a party (licensor) to another party (licensee) as an element of an agreeme ...
, 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.


Role of the Internet

The potential of the Internet 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
username A user is a person who utilizes a computer or network service. A user often has a user account and is identified to the system by a username (or user name). Other terms for username include login name, screenname (or screen name), accoun ...
s and
password A password, sometimes called a passcode (for example in Apple devices), is secret data, typically a string of characters, usually used to confirm a user's identity. Traditionally, passwords were expected to be memorized, but the large number of ...
s, or PINs. Such consolidation enables consumers to access a wide variety of PIN-protected websites containing personal information by using one master PIN on a single website. Online account providers include
financial institution Financial institutions, sometimes called banking institutions, are business entities that provide services as intermediaries for different types of financial monetary transactions. Broadly speaking, there are three major types of financial insti ...
s,
stockbroker A stockbroker is a regulated broker, broker-dealer, or registered investment adviser (in the United States) who may provide financial advisory and investment management services and execute transactions such as the purchase or sale of stocks and ...
s,
airline An airline is a company that provides air transport services for traveling passengers and freight. Airlines use aircraft to supply these services and may form partnerships or alliances with other airlines for codeshare agreements, in whic ...
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 Bill(s) may refer to: Common meanings * Banknote, paper cash (especially in the United States) * Bill (law), a proposed law put before a legislature * Invoice, commercial document issued by a seller to a buyer * Bill, a bird or animal's beak Pla ...
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 from the hosting website.


Local business data aggregation

When it comes to compiling location information on local businesses, there are several major data aggregators that collect information such as the business name, address, phone number, website, description and hours of operation. They then validate this information using various validation methods. Once the business information has been verified to be accurate, the data aggregators make it available to publishers like Google and
Yelp Yelp Inc. is an American company that develops the Yelp.com website and the Yelp mobile app, which publish crowd-sourced reviews about businesses. It also operates Yelp Guest Manager, a table reservation service. It is headquartered in San Fra ...
. When Yelp, for example, goes to update their Yelp listings, they will pull data from these local data aggregators. Publishers take local business data from different sources and compare it to what they currently have in their database. They then update their database it with what information they deem accurate. The four major data aggregators for local business search are Acxiom, Infogroup, Localeze and Factual. As of January 2020, Acxiom will no longer be acting as a data aggregator. Foursquare takes the place of Acxiom in four primary data aggregators. Finicity, a Mastercard company, is the largest player for the lending space.


Legal implications

Financial institutions are concerned about the possibility of liability arising from data aggregation activities, potential
security Security is protection from, or resilience against, potential harm (or other unwanted coercive change) caused by others, by restraining the freedom of others to act. Beneficiaries (technically referents) of security may be of persons and social ...
problems, infringement on
intellectual property Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, c ...
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 card A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the o ...
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 use or to share it with third parties and operator(s) of the website on which the service is offered.


References

{{DEFAULTSORT:Data Aggregator Data management Information privacy Data laws