In the competitive European wealth management sector, achieving next-level efficiency and delivering truly intelligent, personalised services are no longer aspirations - they are necessities.
The key to realising this potential lies in the essential bond between automation and artificial intelligence (AI), and the foundational technology that powers both: the application programming interface, or API.
Think of APIs as the invisible infrastructure that allows disparate systems to connect and share data seamlessly. This interconnectedness is crucial for automation, streamlining repetitive tasks and workflows, and AI, providing the vast datasets needed to learn, adapt, generate intelligent insights and act.
What's truly transformative is the cyclical nature of this relationship: APIs empower AI with access to wider ecosystems, services and data, leading to smarter automation, which in turn generates more holistic contextual data for AI to learn from, creating
a continuous feedback loop that supercharges efficiency and personalisation in wealth management.
Before we delve deeper into this revolution, let's demystify the jargon and explore exactly what APIs are and how they function as the engine of this powerful cycle.
Decoding the digital connectors: What exactly are APIs?
Imagine a sophisticated set of digital Lego bricks. Each brick represents a specific function or piece of data within a software system. An API acts as the instruction manual and the connector, allowing different software applications to communicate with each other and exchange information seamlessly without needing to understand the intricate inner workings of each system.
The aim here is to foster interconnected ecosystems and break down traditional data silos that have long hampered innovation in wealth management.
And because modern open APIs are publicly accessible, they allow developers to build innovative applications and services that can integrate with any firm's existing infrastructure. These could be digital modules that take care of tax wrappers, investments, payments and transfers and portfolio management, to name but a few functions.
In fact, the scope is endless. Client-facing mobile apps can talk to back-end portfolio management systems to retrieve account balances or execute trades. Robo-Adviser platforms can access real-time market data from third-party providers. CRM systems can pull client financial information from a core banking platform. And so on.
Yet, despite their immense capabilities, it’s important to note that not all APIs are created equal. For example, poorly designed APIs are characterised by a lack of clear documentation, inconsistent data structures, absence of validations and a failure to adhere to industry standards, resulting in integration and usability challenges. However, APIs that are aligned with best practice prioritise robust security protocols to ensure data integrity and protect sensitive client information. This allows for more complex interactions and the secure transfer of diverse data types.
Such interconnectedness is vital for wealth management businesses looking to integrate with best-of-breed WealthTech innovations. And it mirrors the strategies of the technology and retail giants who excel at creating seamless user experiences across various services.
Thus, understanding of the different types of APIs, particularly the potential of open APIs to foster innovation and integration within your technology ecosystem, is now a mission-critical priority for the wealth management industry’s business leaders.
The automation engine: How APIs streamline wealth management
APIs’ ability to facilitate seamless communication between disparate systems is the very foundation of automation in wealth management.
Think about the traditionally manual and time-consuming processes that plague many firms. For instance, in the case of pension transfers, this could include manually noting back-and-forth communications between the ceding provider and receiving provider, due diligence checks, fund transfers and investments.
APIs offer the key to automating these tasks, leading to significant gains in efficiency, faster processing, reduced operational costs and a lower risk of human error.
Furthermore, APIs empower wealth management firms to strategically build their core competencies while seamlessly integrating with best-of-breed solutions developed by third-party innovators. Instead of building every piece of functionality in-house, firms can harness APIs to connect to specialised providers for tasks like tax wrapper administration, financial planning or portfolio management.
Therefore, a good starting point for an API strategy is to identify manual workflows within your firm that could be streamlined through API integrations. This will free up valuable time and resources for higher-value activities like client relationship management and strategic decision-making.
However, for some firms, the core competency is the entire automated investment process.
Beyond rules: The API gateway to AI-powered intelligence
While API-powered automation can drive significant improvements, it does have limitations thanks to its reliance on pre-defined rules and logic. This is where the transformative potential of AI comes in.
Generative AI, capable of creating new content and insights; reasoning AI, able to draw logical conclusions from data; and agentic AI, capable of autonomous action based on context, represent the next frontier in wealth management.
However, the power of these advanced AI technologies can only be truly realised through a robust and well-functioning API infrastructure. AI algorithms require access to vast amounts of data - client information, market data, economic indicators and more - to learn, adapt and provide intelligent, context-aware automation that can rival human reasoning. APIs are the conduits through which this data flows securely and efficiently.
Consider agentic AI, for example. To provide truly personalised financial services, an agentic AI system needs to access a holistic view of a client's financial situation, goals and risk tolerance – as well as access to systems to take actions for that client. This requires seamless integration with various systems holding this information (from investment accounts to insurance policies to even external data sources) as well as to the systems with the capabilities to transact and execute.
APIs, particularly when coupled with model context protocols, which standardise how AI models interact with APIs, make it easier for these intelligent agents to contextualise, self-orchestrate across systems and operate effectively to provide truly tailored services.
This level of sophisticated personalisation is a key differentiator for firms looking to meet the heightened expectations of today's investors, who are increasingly accustomed to personalised experiences from other areas of their digital lives (e.g. e-commerce, social media, and streaming).
It is therefore essential that wealth management firms recognise that a strong API foundation is not just for current automation needs but is a critical prerequisite for leveraging the transformative power of AI in the future, enabling more intelligent and personalised services.
In fact, this is now a matter of priority, if research by Gartner is anything to go by. After surveying 459 independent technology service providers, the global consultancy predicts that, by 2026, more than 80% of vendors will have embedded generative AI capabilities into their enterprise applications, up from less than five percent in 2024. This will increase demand for APIs by 30%.
Future-proofing your firm: The imperative of an API strategy
The wealth management industry is in a state of constant evolution. While automation and AI are the dominant forces shaping the present, the future will undoubtedly bring new technological advancements and unforeseen disruptions.
To make the most of these advancements and avoid the risk of obsolescence, it is vital that wealth management businesses grow their knowledge of technology and devise an adoption strategy. To do this involves three key actions:
1. Action #1 - Understand the API landscape. Leadership teams must prioritise gaining a comprehensive understanding of the different types of APIs, with a particular focus on the opportunities presented by open APIs within the regulatory framework.
2. Action #2 - Audit your automation potential. Conduct a detailed review of all manual workflows across your operations to pinpoint time-consuming processes ripe for API-powered automation.
3. Action #3 - Develop a forward-thinking API strategy. Craft a clear and comprehensive API strategy that not only addresses immediate automation and AI needs but also ensures the long-term adaptability and future-proofing of your technology infrastructure to integrate with emerging innovations and WealthTech partners.
Wealth management firms that fail to prioritise API adoption risk being left behind by more agile competitors and new entrants who are already capitalising on this transformative technology. There’s no time to waste.
Interested in reading the European WealthTech Landscape Report 2025? You can read the report online here.
About The European Wealth Landscape Report 2025
The European WealthTech Landscape Report 2025 is a new WealthTech Landscape Report from The Wealth Mosaic, focused on the wealth management sector in Europe.
With the rapid pace of change in financial services, understanding technology's impact on this sector is more crucial than ever. This Europe-focused Landscape Report features a series of insightful articles that explore the trends, challenges, and innovations surrounding technology adoption in wealth management. Contributions come from a range of organisations, including AWS, Croesus, Deloitte, ERI, EY, Fincite, Finfox, First Rate, Infront, Intellect Design Arena, Moneyfarm, Raise Partner and WealthOS.
The articles you will find within the report provide valuable perspectives on how technology is transforming the wealth management industry. They discuss various aspects of technology adoption, from the latest innovations to how firms can leverage technology to enhance client engagement, streamline operations, and comply with regulatory demands.
We trust you find this report invaluable to your business needs and supportive of your understanding of the fast-moving technology marketplace surrounding the European wealth management market.
Click here for more information.
About The WealthTech Landscape Report Series
Our goal with our WealthTech Landscape Reports (WTLRs) is to collate relevant, insightful content and comments from both wealth managers and vendors operating in a specific region. Each WTLR is founded on a curated directory of hundreds of relevant technology and related solution providers to the business needs of the wealth management community in focus. The directory is supported by a rich variety of thought leadership articles and interviews with industry participants from both buy and sell side, plus a section of Solution Showcases. We also look at country, regional, and sectoral trends.
If you are interested in contributing to our editorial projects, don't hesitate to get in touch.
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