OpenWealth and SFTI Common API Develop Swiss API Standard for Wealth Management

The OpenWealth Community and SFTI, through the Common API initiative, have set a new Swiss API standard based on defined APIs for the wealth management industry.

In June 2020, global management consultant Synpulse and Swiss regional bank St.Galler Kantonalbank (SGKB) established the OpenWealth Community with the aim of defining an application programming interface (API) standard for wealth management.

The OpenWealth Community is about to publish the first version of standardised APIs focusing on custodian bank services for external asset managers (EAMs). Going forward, they will also be responsible for the wealth management component of the Swiss Fintech Innovations (SFTI) Common API under the aegis of the SFTI association, developing a standard for the Swiss wealth management industry based on the OpenWealth APIs.

In the past few months, Synpulse, SGKB, and the wealthtechs that belong to the OpenWealth Community have specified the first version of the OpenWealth API. This will be made openly available to the Swiss financial industry in the next few weeks.

Although in the first version, OpenWealth focused on connecting EAMs, the APIs are designed in such a way that they can also be deployed for use cases in the private client segment.

The first version of the OpenWealth API covers the following functional scope:

  • Reading and changing client data
  • Reading securities account data (positions with valuations and transactions)
  • Trading

In addition to its own sandbox, OpenWealth offers many other services to its member community. In the sandbox, all relevant use cases can be simulated end-to-end with mock data. This allows all the wealthtechs participating to develop and test their OpenWealth API connection, independently of banks.

“The OpenWealth API will boost the efficiency of the Swiss wealth management market, equipping all participants for innovative use cases, in addition to connecting EAMs,” explained Raphael Bianchi, Partner and Head of Switzerland at Synpulse. “It’s not regulation that’s pushing the Swiss financial industry toward open banking. For ‘open’ business models to function in Swiss banking, concrete use cases are required. Through OpenWealth, we’re encouraging the notion of community by jointly defining a standard and implementing a concrete business case.”

OpenWealth aims to create a Swiss API standard for the wealth management industry based on the defined APIs. From now on, API standardisation will continue under the aegis of SFTI. The Common API working group has established itself in the financial industry as the Swiss standardisation body, and the OpenWealth Community is proud to be part of it.

Dr. Simon Alioth, Associate Partner and Head of Open Banking at Synpulse, who also heads the OpenWealth Community, said: “The idea is for as many banks as possible to adopt the OpenWealth APIs. Only that way can we establish a standard. This is why it helps to coordinate activities closely under a leading industry association. We’re delighted to be continuing the specification under the umbrella of the SFTI Common API.”

Jürgen Petry, Co-Director of the SFTI and Head of the Common API initiative, added: “We’re delighted to have found the OpenWealth Community to partner with us and harness their great technical know-how and extensive network to drive the Swiss API standard for wealth management and securities forward.”

About OpenWealth

OpenWealth is a community of banks, wealthtechs, and service providers orchestrated by Synpulse with the common goal of defining, operationalising, and implementing an API standard for wealth management use cases. OpenWealth was initiated by St.Galler Kantonalbank, Synpulse, and three manufacturers of portfolio management systems to boost the efficiency of the Swiss wealth management business and, with the support of a large community, establish these newly defined APIs as the standard.

About SFTI Common API

The Common API working group is an initiative of Swiss Fintech Innovations. The association unites prestigious banks and insurers with other key players in the Swiss financial industry to address crucial issues in these industries, holistically and innovatively. The conceptual work preliminary to creating a cross-industry, broadly coordinated interface standard is bundled in the Common API working group.

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