APIs are nothing new. For as long as software operating systems have existed so to the API. In today’s world the API is generally spoken of as an ‘open’ means of accessing another software platform. And that is the focus of this article.

In the wealth management industry, accurate, timely and seamless data exchange is a daily requirement. AdvisorPeak’s trading and rebalancing platform APIs makes it possible for advisors tech stack to exchange critical information essential to their business and client’s portfolios. To help you understand what APIs are, let us dig deeper into how APIs are rapidly changing our industry:

An API is not a server, it is the access point that receives and sends requests for an action to be taken or data to be returned. Many companies have built ‘closed’ APIs accessible by only their customers and/or for internal use. APIs are the basic components used to create a rich tech stack benefiting both advisors and their clients. In the wealth management industry, where massive amounts of data are exchanged, APIs are an essential part of software related to managing client’s wealth.

APIs allow advisors to complete actions without leaving their internal software systems. Without APIs, obtaining information would involve logging into another website, making a request for information, and waiting for the answer (data).

APIs remove the many steps to obtaining information, seamlessly connecting to third-party providers such as custodians and other wealth tech integration providers at one time. Another way to think of an API is what the application (letter “A” in API) can refer to:

  • A piece of software with a distinct function
  • The whole server, the whole app, or just a small part of an app.

Source- Free Code Camp

Or, in the wealth management industry, the application of:

  • Trading and rebalancing
  • Portfolio monitoring and reporting
  • Analytics providers
  • CRM

“The financial services industry is going through a massive digital disruption, similar to the one seen in retail and other industries. For most executives, the question is no longer whether the industry will go through a digital metamorphosis, but how can they ensure they are not left behind”—Wealth and Asset Management 2022: The Path to Digital Leadership

 “Given the advanced focus on digital transformation, wealth management firms are looking for faster ways to innovate, such as partnering with technology providers to stay ahead of the competition. APIs provide customizable and agile platforms and are expected to help plug the gap for firms looking to scale up in technology. 

With investors seeking better user experience, firms need to shift from merely using APIs as a source of communication (to remain compliant) to leveraging APIs to provide better client services and create new revenue streams.” – Capgemini Financial Services Analysis, 2019

“This fast-changing business and regulatory environment is causing investment firms to rethink their strategic priorities over the next five years. Our research indicates that providers are leveraging technology to improve both the bottom line by driving efficiencies (51%) and the top line by penetrating new customer segments (50%), expanding distribution (46%), using predictive analytics (45%), and deepening client relationships (43%).”—Wealth and Asset Management 2022: The Path to Digital Leadership

Our AdvisorPeak APIs enable your tech stack to seamlessly connect our platform to request and send data to your custodians and other critical systems providers relevant to your practice. Contact us to find out how AdvisorPeak and our integration partners are using APIs to benefit your practice.