API Standard and Community for Wealth Management
COMMUNITY
Standardization – Operationalization – Efficiency gains for all parties involved – Cost-bearing
BACKGROUND
Today‘s connectivity between custody banks and portfolio management systems (PMS) resp. external asset managers (EAM) is to this date mostly proprietary, with a single data exchange per day (end-of-day) and includes manual steps in the process. This results in an increased error rate as well as additional costs to maintain the different interfaces. A joint study of Synpulse Management Consulting and the St.Galler Kantonalbank (SGKB) together with leading PMS, EAM and custody banks shows that a standardized interface in wealth management is desirable as it leads to advantages for all involved parties. It is such a REST-API (Application Programming Interface) in wealth management that Synpulse and the SGKB are developing as part of a selected community to achieve a standard which is business-oriented, broadly accepted and based on known industrial norms.
From the community for the community
VISION AND MISSION
Define, maintain and operationalize the Open API standard for a global wealth management community
- Develop and maintain an API standard for the wealth management industry.
- Bring efficiency and innovation to the Swiss financial sector and beyond.
- A community which is actively using the APIs.
- Contribute to national and international standardisation initiatives (SFTI, FIX, ISO, BIAN, etc).
- Open Source : API specifications of major versions are publicly accessible.
ADVANTAGES
CUSTODY BANKS
Scale Custody Banking
- Reduce manual processes at the intermediary’s desk.
- Interface, EBICS and e-banking offerings for intermediaries.
- Attract new intermediaries with a state-of-the-art real time connectivity supported by market leading and innovative WealthTechs.
Reduce Risk
- Reduce operational risk by process automation.
- Reduce regulatory and reputational risk as all client data is in sync with the intermediary.
- Reduce third party risk as WealthTechs are audited and certified by OpenWealth.
Foster Innovation
- Be ready for new API based ecosystem and platform business models in the wealth management industry.
- Aggregate data from other banks to offer cost efficient global custody solutions.
EFFICIENCY
- Maintenance of fewer (optimally one) interface(s).
MARKETING
- Perception as an innovative player in the market
- Marketing through OpenWealth support and inclusion in the community
ADVANTAGES
PORTFOLIO MANAGEMENT
SYSTEM
ADVANTAGES
EXTERNAL ASSET
MANAGERS
Accessability
- Easier access to data and reports to fulfil FIDLEG requirements
- Real-time data in the portfolio management system (PMS)
Multi-Custody
- Meet customer need for an own digital (multi-custody) channel
Efficiency
- More efficient processes as transactions can be placed automatically in the PMS
APIs
Customer Management
Version 1
- Customer data
- KYC info
- Update KYC info
- Update addresses
Backlog
- Account opening
- Relationship opening
- Documents
Custody Services
Version 1
- Portfolios
- Positions with valuations
- Transactions (bookings)
Backlog
- Performance
- Corporate Actions
- Management fees
Order Placement
Version 1
- Security trading
Backlog
- Money market
- FX trading
- Derivatives
ORCHESTRATION
Intermediary/
Private Client
WealthTechs
Synpulse
OpenWealth API
Banks
A Community of trusted
WealthTechs
- Audited WealthTechs which are ready to consume the OpenWealth APIs in a tested and trusted way.
- Tested and audited API implementation from member custody banks.
An operational API Standard for Wealth Management
- An operational REST API standard defined, maintained and further developed with the community based on established ISO20022 and FIX standards.
- Defined authentication and authorization flow for B2B and B2C based on OAuth 2.
- An API Sandbox with Developer Portal for the community.
Fast Open API
Implementation
- Tested and audited API implementations from custody banks.
- Access to API specialists for fast implimentation or API as a Service
- Synpulse OpenWealth Core Banking (Avaloq and Finnova) integraton
MILESTONES
September 2020
API V1 defined
January 2021
- Sandbox online
Tbd
- Go-live SGKB
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Hochschule Luzern
12-10-2020
