When Morningstar makes a big move — like its recent acquisition of ByAllAccounts, the dominant account aggregator for financial advisors, for example — the market takes notice, especially competitors who use the service. With 2,100 clients (including many financial advisors), 4,300 custodians, 40 platforms and $730 billion moving through its engine daily, BAA has been on a roll over the past four years and has become the dominant account aggregator, according to a report by RIABiz.
Combine that reach with Morningstar’s $159 billion under advisement, and the industry may finally see the marriage of advice and access in a big way — giving advisors the ability to see their entire financial picture, not just what’s in their 401(k) plan or assets that the advisor manages.
Will Morningstar’s competitors continue to use BAA after the $28 million acquisition is finalized? Morningstar is used to selling data to competitors, but will the acquisition give them an unfair competitive advantage that forces BAA clients to use other services? Regardless, the news takes the discussion of account aggregation, advice and portfolio management to a new level given Morningstar’s brand, capital and distribution, especially in the DC market.
