Application programming interfaces (APIs) are the backbone of many cloud-based applications. In wealth management, they’re the hidden heroes behind any process that relies on data aggregation. And because significant net worth carries significant amounts of information, wealth management firms need better data aggregation than most. APIs can help financial advisors get cleaner data, develop agile workflows, and ultimately spend more time building relationships with their clients.
However, since APIs are ubiquitous these days, the question is not whether or not you need one, but how to select the correct one that comes with the features and security required when dealing with sensitive, identifying information like client financials.
Get a Bird’s Eye View of Client Finances
With the rise of online banking, mobile payment services, cryptocurrencies, retail investment apps, and a plethora of other fintech services, hardly anyone keeps all of their money locked up in single institution anymore. And that doesn’t even include the various assets high net worth (HNW) individuals might keep in real estate, overseas investments, different currencies, and so on. It’s a dizzying array of information.
Fortunately, APIs can gather information from several accounts and aggregate it into one dashboard. Open banking (and someday, open finance) aims to keep infrastructure and permissions standardized across applications so that clients can opt in to third-party APIs and more easily share financial data between institutions. Clients and advisors can get a holistic view of assets, liabilities, and opportunities.
Armed with more complete knowledge about their clients, advisors can offer improved services and highlight areas for growth that were once obscured. And clients can see the value advisors add to their portfolios.
Spend Less Time on Paperwork and More Time on Clients
New client onboarding consistently plagues advisors, with 37% ranking it the most cumbersome part of interacting with clients. Traditional onboarding takes time, requires repeated back-and-forth communication, and is rife with opportunities for error. But an automated workflow with integrated APIs can solve common onboarding headaches with auto-populated fields, data synchronization, and digital signature platforms.
Beyond that, workflows can ease account maintenance and compliance processes. Advisors receive automatic alerts about updates to client data, regulatory snags, and account changes so that they can make the appropriate adjustments quickly.
Ultimately, automated workflows save financial advisors valuable time. Instead of manually looking after forms, files, and requests for information, advisors can turn their attention to connecting with clients, thoughtfully evaluating their portfolios, and offering sound guidance.
Build an Integrated Wealth Management Ecosystem
With the right stack, advisors can access everything they need in one place. A suite of fully integrated APIs can support advisors through the entire investment lifecycle, from onboarding through portfolio management and clearing. Not only can they gain deeper insight into individual clients, but they’ll have a clearer view of their clientele as a whole and how they can adjust or improve their services.
Further, RIAs considered “technology embracers” serve more clients, increasing from an average of 70 to 72. Because they make full use of the available tools, they can spend more time gaining (and keeping) clients. This is especially valuable for advisors serving HNW individuals who expect top-tier service with lightning speed.
Giving advisors access to best-in-class technology, including APIs, pays off. It makes them better resources for their clients and helps both client portfolios and wealth management firms grow.
About Docupace
Docupace is a solutions provider focused on digitizing and automating operations in the financial advice and investment industry. Financial services firms use the Docupace Platform (a cloud-based, integrated software suite) to reduce back-office expenses, improve efficiency, strengthen recruiting, and enhance the experience of advisors and investors. With headquarters in Los Angeles, California, Docupace is proud to serve some of the largest independent broker-dealers and registered investment advisers (RIAs) in the financial services industry. For more information, please visit www.docupace.com.
