Financial Planning & Investing Aggregators: TAM
Based on a survey of the estimated revenue of the top 21 financial planning and investing aggregators (more commonly termed "bank comparison" companies), we triangulate the current TAM at $2.21 billion. An explanation of the limits of the available data in the public domain and our methodology can be found below.
Methodology and Available Data Points
- Our initial search found no available market reports which might provide data critical to calculating the TAM for financial planning & investing aggregators, nor any articles by fiance industry experts which estimate the total revenue.
- We also find that "financial planning & investing aggregators" to be a term in wide use; sites such as Bankrate and NerdWallet are more commonly referred to as "bank comparison sites," while "financial aggregator" more commonly refers to an app or platform which enables the user to access their account information across multiple financial institutions in one place.
- According to Gartner, comparison sites "own 34% and 25% of first-page search results for banking and lending, respectively."
- Comparison site disclosure statements make it clear that a large portion of their revenue comes from the banks themselves, who register with the sites to boost their web traffic and gain new customers.
- Comparison sites keep the details of their agreements with the banks "very close to the vest," according to Lierin Ehmke, Senior Digital Marketing Analyst at Comperemedia.
- Ehmke adds that bigger banks tend to dominate comparison sites; for smaller financial institutions, "The best way to get an affiliate site presence on the cheap is to keep your finger on the pulse of newer affiliate sites."
- Consequently, we infer that this market will be very fragmented, dynamic, and difficult to track for the foreseeable future.
Bank Comparison Companies
- In addition to the companies listed in the research criteria (Bankrate, Consumers Advocate, Credit Karma, DoughRoller, Finder.com, MagnifyMoney, Money.com, Money Crashers, Millennial Money, Money Under 30, NerdWallet, SmartAsset, Super Money, The Simple Dollar, and Wallet Hacks), The Points Guy, GOBankingRates, The Ascent, Wise Bread, and The Balance are "among the better-known financial comparison sites in the US."
- LendingTree runs four more comparison sites: ValuePenguin, DepositAccounts, MagnifyMoney, and CompareCards.
- FindABetterBank is operated by Novantas.
With such limited visibility, we pulled the estimated revenues of the known players in this sector from reputable repositories of corporate data. We have compiled these revenue estimates and our sources into a project spreadsheet for ease-of-review. Based on our survey of the top 21 companies in this sector, we estimate the current TAM at about $2.21 billion. This triangulation comes with a few caveats:
- We lack visibility into Money.com's revenue; in our experience, this usually means that a company has a very small net income, but this is not a given.
- While we have eliminated one company as being primarily based abroad, public records do not enable us to determine whether and what percentage of any company's revenue is generated outside of the US.
- We do not know how many companies are operative in this sector, but based on our findings above, we believe that the number is growing. Consequently, this TAM should be considered the lower bound, though based on Wallet Hack, Magnify Money, and Wise Bread, we have no reason to believe that our triangulation would change by more than several million even if we had a more complete list.