Expert Talk «API Standardization for Wealth Management»
Synpulse runs the Open Banking project in cooperation with St. Galler Kantonalbank (SGKB). The aim is to define and then implement standardized API interfaces.
Simon:
Sven, can you tell us what the SGKB is up to?
Sven:
SGKB has two objectives with this project.
On the one hand, we are convinced that banking will increasingly be possible in the future via REST APIs. This means that banks will provide data and transactional services via APIs. We want to acquire these capabilities well in advance.
Get the Latest OpenWealth Updates in Your Inbox
On the other hand, we have a concrete use case: We are collaborating with a pilot community of two external asset management companies and three well-known portfolio management systems vendors to define standardised APIs.
Simon:
For a cantonal bank, this is a very innovative and major initiative. What are the strategic considerations for tackling the project right now?
Sven:
We are of the opinion that a dual strategy makes sense. A bank does not always provide its own digital solution for its customers. In some cases, it makes sense to allow third-party providers secure access to bank data. We see this use case as a sensible step to enable asset management companies to increase efficiency and to advance the bank in terms of open banking.
Simon:
We are talking about a very innovative and promising strategy of the bank. Synpulse is investing a lot of time in this project to jointly define an API standard and is supporting the development of the community. The project is being promoted under the name "OpenWealth API" and aims to create more opportunities for further Open API Use Cases in Wealth Management and Private Banking.
Why are you relying on the collaboration with Synpulse and not establishing the community on your own?
Sven:
As a bank, we see ourselves as a long-term participant in the OpenWealth ecosystem. An ecosystem lives primarily from the fact that a community is created from various custodian banks, portfolio management systems, asset management companies and other participants.
We are very grateful to have a partner who has the necessary know-how, has strong networks and can promote the standard globally! For these reasons, we have decided to work with Synpulse Management Consulting.
Simon:
Thank you for your trust! We are very excited about this mission and the development of the community. We are firmly convinced that the project will be a success, because we are hitting the nerve of the time. There is a lot of talk about the standardization of APIs, but nobody has implemented it yet.
Many thanks, Sven, for this expert talk.
