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
  • Addresses

Backlog

  • Account opening
  • Relationship opening
  • Documents

Custody Services


Version 1

  • Portfolios
  • Positions
  • Bookings

Backlog

  • Performance
  • Corporate Actions

Transactions


Version 1

  • Security trading

Backlog

  • Management Fees
  • 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

API SANDBOX – COMING SOON

OUR BLOG

In June 2020, the global management consultant Synpulse and the Swiss regional bank St.Galler Kantonalbank (SGKB) established the OpenWealth Community with the aim of def...

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Chapter 3: Read how Hong-Kong-born DevOps engineer Melissa Chao steps in to save the day – and uses API magic to stop the glaciers in her adopted home of Switzerland fr...

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CONTACT

SIMON ALIOTH

Associate Partner | Head Open Banking

RAPHAEL BIANCHI

Partner | Head Switzerland