The wealth management industry is redesigning faster than ever before—Intense M&A activity, commission compression, price wars, and use of open data. Open data is creating profound opportunities for clients and advisors, and firms. 

Who is in control is also changing. In the past, financial institutions had complete control of customer data, creating barriers to transferring data or when customers choose to leave the institution. Now, the customer can choose who they do business with, whether it is an institution or an advisor, thanks to open data.

With open financial data continuing to accelerate, the global financial ecosystem is evolving, enabling access to everyone, including the customer, the advisor, fintech providers, and financial institutions. When the best, most intuitive technology implements, everyone wins. Customers benefit from more access and visibility into how their money is managed and advisors by more technology choices through third-party integrations.

At AdvisorPeak, open data creates a streamlined system for trading and rebalancing using our software with these enhanced features through our PaaS partner integrations:

  • Efficiency- Costs reduce and the software scales as your business grows
  • Seamless Integrations- Primary custodians, as well as service and analytics partners, remain intact
  • Customization- You have control over what is important to you and your clients 
  • Flexibility- You can retain or delete as much of the portfolio management process you want when you switch clearinghouses.
  • Fine-Tuned Securities Management- All types of securities, mutual funds, stocks, ETF’s, fixed income, hedge funds, and currencies are supported—including crypto.

Throughout the pandemic, the shift toward digital has accelerated choice and open data for flexibility within the financial services industry. According to McKinsey, open financial data could put powerful non-bank companies in a stronger position to become financial-services players. The shift in power includes using data to create new products and services leading to amassing customer attention and controlling AUM.

“At the moment, however, the open-finance landscape remains in flux, with the real winners and losers far from determined. In a number of countries, fintechs are actively pursuing this opportunity, vying for the same customers and funding. Ultimately, not all of them can win. At the same time, incumbent banks are likely to continue to be a meaningful part of the ecosystem, even without the direct customer relationship. It will be imperative to understand and respond to these changes, reimagine offerings, adjust business models, and forge successful partnerships with fintechs or tech companies, to ensure continued success and relevance.”—Financial Services Unchained: The ongoing rise of open financial data, McKinsey, July 11, 2021.

At AdvisorPeak, we believe that open data will benefit our industry by bringing opportunities to clients, advisors, and institutions through well-designed technology solutions. Let us show you how AdvisorPeak and its partners provide you with the features, benefits, and value to act on today’s open-data opportunity.