Today, it’s hard to have a discussion without the acronym ‘API’ (application programming interface) being worked into the conversation. Wikipedia describes it as “An application programming interface (API) is a computing interface which defines interactions between multiple software intermediaries. It defines the kinds of calls or requests that can be made, how to make them, the data formats that should be used, the conventions to follow, etc.” –Wikipedia.

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

According to the Top Trends in Wealth Management 2020 report, out of the nine trends in wealth management, trend 7 is APIs to foster innovation and create new channels of growth for wealth management firms:

“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

Our AdvisorPeak trading and rebalancing system APIs enable your tech stack to seamlessly our platform to, among many other things, request and send data to your custodians and other critical systems providers relevant to your practice. Please Contact us to find out how AdvisorPeak and other the tech stack leaders of today are using APIs to benefit your practice.