A white arrow pointing upwards

As a wealth manager in a rapidly evolving industry, you’re likely aware of outdated legacy systems, costly and time-consuming processes, and the need to comply with regulatory requirements.

You might also be looking to improve your proposition, streamline processes, and enhance your clients' experience. Staying ahead of the curve is a good way to differentiate yourself from the competition, and one way to do this is to embrace technology, especially APIs! This blog talks about APIs as the invisible frameworks that power many of our digital experiences.

Let’s look at some of the challenges wealth managers are facing –

  •  Increasing costs

With the rising regulatory, energy and labour costs, around 85 percent of advisers expect a rise in overhead costs over the next six months, as this FT article says. Running a wealth management business is expensive.

  • Rising security risks

With cyber threats on the rise, protecting client data is very important. An outdated system exposes your platform to security risks because of the lack of security updates and patches. 

  • Not user-friendly tech

Legacy systems often lack stability, reliability, connectivity and efficiency and make it challenging to integrate modern tools and services into them.  They may also become outdated, deprecated or at risk of being shut down when acquired. This also affects customer experience through slow account opening, buggy websites, and more.  

How can you benefit from APIs?

APIs offer wealth managers a single unified platform and help them upgrade their systems and services, from internal operations to customer experience. Here’s how –

  • Improved efficiency and low cost of integration

APIs help you automate most manual processes, giving you more time to focus on your customers. They also shorten development time and reduce the need to invest additional resources and staff to integrate and strengthen your technical stack. 

  • Create a front-to-back solution

As a wealth manager, you might already have a customer portal that your customers use. API-based platform providers like WealthKernel can integrate with your front end and help your tech team connect to their platform for a fully digital front-to-back end experience for your advisers and clients.

  • Improve your tech stack

With APIs such as WealthKernel’s, you can benefit from a high-quality tech stack as it helps you integrate many important services such as custody, trading, rebalancing, portfolio management and more into one system.

  • Better customer experience

With modern tech integration, your platform can work on multiple user workflows without slowing down the website, keep it safer from security breaches, automate rebalancing and offer updates that your customers need. Ultimately, all of the above will improve your customer experience as it removes most of their pain points.