The Last Mile: Using APIs to Optimize Your Wealthtech Stack for Portfolio Trading

The Last Mile: Using APIs to Optimize Your Wealthtech Stack for Portfolio Trading

By Brad Kellogg, COO Flyer


For decades, wealth management firms have built their wealthtech stack by choosing from either all-in-one platforms or disparate solutions. The major issue? These all-in-one platforms may not be best-in-class at every step of the advisor workflow, and the best-in-class disparate solutions may not seamlessly integrate across platforms.

In recent years, the wealthtech industry has begun recognizing this problem, and has looked to address it through modern application programming interfaces (APIs). Essentially, these APIs allow different platforms and institutions to seamlessly integrate on the back-end, creating an API economy that benefits users by opening access to financial institutions and digitizing workflows. The bundling of legacy infrastructure with a digitized workflow through modern APIs is key to enhancing the investment process.

“The Last Mile” of the investment process in particular – portfolio modeling, rebalancing and order management – is an area that firms nationwide can greatly improve. The importance of trading desks using the right portfolio trading system in The Last Mile cannot be understated, especially in highly volatile situations.

By leveraging this growing API economy, wealth management firms can move past their outdated systems and manual processes, making their trading desks as highly interconnected as the markets in which they operate. These APIs can transform The Last Mile by digitizing workflow management, creating tight integrations with all custodians and brokers, and ultimately controlling the advisor experience.

For the full article click here: The Last Mile

For the full report click here: 2021 Market Outlook

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For more about PMS, read our Guide to Portfolio Management Software