Many software companies use APIs as key component of their business. But what does the abbreviation actually mean and what does it offer?
API stands for Application Programming Interface and describes interfaces that can be used for the secure and fully automated exchange of data between two systems or partners. More precisely, it enables a program to be connected to another software system.
APIs are continually attracting attention through their use in numerous web-based applications. Interfaces belong to every system such as operating systems, databases, hardware or program libraries. These interfaces make it possible for external developers to develop programs for operating systems like iOS or Windows. With multiple services being integrated across platforms, APIs play a vital role in creating adaptable environments for developers and users alike. APIs enable systems to directly talk with each other and thus allow a fast and secure exchange of information.
Keep tabs on your information flow with APIs
Still, not all APIs can be used by everyone. They always come with documentation describing their various possibilities and conditions of use. Companies have different approaches to opening up their platforms, ranging from enabling only selected partners to access their APIs to all access approaches. Bigger examples for the latter alternative are Apple and Microsoft who opened their systems widely for other developers. Platforms like Elinvar, however, open their systems only to selected partners mostly those required for specific tasks performed within the platform, such as APIs with the custodian bank or identity verification platforms.
What do Netflix and digital asset management have in common? An intuitive, user-friendly interface
Most asset and wealth managers are well aware of the impact digitalization is having on their industry. One major issue is the private investors’ growing expectations of their portfolio management. Today, private investors measure their banking and investment products against the apps they use on their smartphone every day. Netflix, Twitter, and Airbnb clearly lead the way in terms of usability and design. This new expectation can be turned into an opportunity. Keeping up with the technological advancement by maintaining and improving financial expertise will be the key success factor for asset & wealth managers in the next years.
Staying up to date with the Elinvar platform
This is the playing field the Elinvar platform competes in – it enables asset & wealth managers in the digital age, by leveraging on their financial expertise and customer focus whilst providing a platform to digitalize their business. Elinvar is a state of the art platform, built on a microservice structure that communicates through APIs. Therefore, the platform itself consists of many different services that are working together, communicating through API’s. This makes every part of the platform flexible, which is why Elinvar can constantly adapt to changing technological and infrastructural needs.
A good example of the platform’s adaptability and use of APIs is the integration of the Elinvar platform with specific custodian banks which are used to safeguard the investor’s assets. People investing with an asset manager via the Elinvar platform do not need to check their bank account to get an overview of their assets. APIs connect to the custodian bank with Elinvar via which private investors have access to their assets under management – easy to use and highly individualized. This allows investing individuals to stay up to date on their assets and investment strategies by visiting just one portal. This connection also eases the work of the asset managers themselves: Orders that are triggered on the platformn are immediately checked and automatically sent to the custodian bank for execution.
Outstanding user experience and regulatory compliance – from a single source
APIs not only ensure the integration of services into the Elinvar platform, they also lay the foundation for a seamless user experience. When it comes to their investment, the individualized Elinvar platform is the go-to point for the private investor. Saving time and the need to check several accounts, Elinvar offers an optimal and adaptable user experience.
Elinvar is fully BaFin-licensed and therefore guarantees for the regulatory compliance of its platform – including API integration. This reduces the bureaucratic effort of the asset & wealth manager, creating freedom and space to concentrate on their core expertise: creating value for their customers.