Solving firms’ research and data interoperability issues with APIs from Synaptic

Recent research has shown the fragmentation of the adviser software marketplace, and how far the sector is behind other parts of the fintech sector such as retail banking.

"These APIs can enable direct integration into existing system and process – giving the opportunity to create seamless software journeys rather than forcing advisers through a hotchpotch of unconnected services"

We'll look at how some of the latest technology solutions from Synaptic can help you accelerate your transformation journey and give a competitive advantage.

The state of play

The general level of IT and integration of systems available to adviser firms is considered to be poor in relation to other sectors. The 2019 Report: 'A Disconnected World' (the lang cat & Origo), indicated that a typical compliant journey of an advice-based recommendation 'may require data to be re-keyed 5 or 6 times'. That is neither efficient, nor a satisfying way to be doing business on a day to say basis.

To help address this egregious drag on firms' efficiency, Synaptic has seen an opportunity to build a suite of APIs. These APIs can enable direct integration into existing systems and process – giving the opportunity to create seamless software journeys rather than forcing advisers through a hotchpotch of unconnected services.

Alongside these factors, the trend is towards consolidation in the adviser market – that means mergers continuing but on a scale we've not seen before. Anyone who has been through this process knows that two 'wrong' technology systems do not make a 'right' and that poor quality data equals a poor quality advice journey. Finding a technology partner to help level that playing field and give high quality data in an easy-to-digest format is difficult, but that's something Synaptic can help with.

What's next?

Improved use of data and integrated services could unleash the potential of your organisation to use technology effectively and get the best from your staff. Synaptic data and services via the new Pathways API suite can help your organisation respond to the stringent requirements of MiFID II in a more agile and flexible way. Synaptic plays an important role in financial services, collating platform, product and fund data for use by advisers and combining this with highly sophisticated modelling and calculations – now all wrapped up in APIs ready for integration with existing systems and processes.

Synaptic provides the point-of-access for:

  • the market leading stochastic risk model and projections engine from Moody's Analytics risk management for retail investors;
  • the industry's leading costs and charges calculator (Comparator);
  • access to the world of Product and Fund data from the Synaptic research team;
  • standard MiFID II compliant cost and charges disclosure data;
  • new and comprehensive database of MPS and IDD portfolio (as well as product) data;
  • ability to request ex-ante illustration reporting wrapping up risk, projection, costs and charges, fund information and MiFID disclosure data

A unique characteristic of Synaptic's research methodology is collaboration with providers to obtain and verify data in the systems. This has created a high level of trust and reliance in Synaptic.

The industry is changing with trends including the conglomeration of advice businesses and the emergence of 'vertical' integration' as business models. Regulation intended to make advice more accountable to customers, and more professional, is increasing the reliance on technology, as greater efficiencies and transparency becomes more critical with larger groups of advisers being created.

The historic lack of integration and technological advancement within the industry is being challenged, and new technology is coming to the fore; whether with a new Salesforce CRM complemented by Synaptic ex-ante illustrations, stochastic modelling or creation of risk-rated model portfolios. Advisers and their customers expect the professional tools they depend on to be fit-for-purpose in the 21st century.

Synaptic has made its data and service assets available via API for 3rd parties to adopt into whatever technical framework they wish – that is the interoperability that is now required to move away from the disjointed world. This is facilitating a new age of technological innovation and progress, where systems can develop faster with the components that are required, detaching themselves from monolithic IT systems. Synaptic data and services can now become agile components within organisations, enabling them to strive for greater functionality and ultimately reliance on systems that can deliver much better value for shareholders, advisers and customers.

MiFID II, IDD and discretionary MPS due diligence

Synaptic APIs deliver data and services – separately or combining to facilitate MiFID II compliant reporting (ex-ante or ex-post).

A key development within the Synaptic suite is the availability of data on a wide range of IDD and discretionary MPS portfolios, enabling illustrations (including ex-post and ex-ante), full charging analysis and disclosure of costs, and full, model-driven (Moody's) risk profiling.

The following is a list of the principle APIs available from Synaptic

People familiar with Synaptic tools will recognise the product terminology, but these are now brought to life as a set of distinct APIs with a huge amount of data, knowledge and skill all hidden away behind the scenes.

Modeller, Comparator, Product & Fund and Analyser now exist as functional APIs that can help 'power-up' your existing systems. Added to that, in the new Pathways product, are illustration and suitability tooling to help you on your MiFID II compliance journey for both ex-ante and ex-post requirements.

Ex-Ante Illustration API

will return an illustration of costs and charges, risk and MiFID II disclosure for a given on or off platform product including funds, growth and charge data to produce a new business illustration.

Product and Fund Data API

will return a host of provider, product and fund data helping support high quality back-office data, portfolio builder services and product/platform/fund support.

Modeller API – Risk and Projection Risk:

will return a risk profile of a given investment based on underlying asset allocations. Projection: will return a stochastic projection of a given investment, or will solve contributions required to meet an investment goal

Comparator API – Reduction in Yield (RIY) Illustration

will return an RIY calculation, to illustrate the effect of enhanced costs and charges applied and overall reduction in yield (for total solutions cost).

Fund Fact Sheet API

will return a product or fund fact sheet as part of research process in PDF or HTML format.

Ex-post illustration API

will procure a valuation for a holding and risk rate the current position of that holding for review purposes, including fund target market data, to allow the disclosure of costs and charges for compliance purposes.

 risk rate my stuff

About Synaptic data

Providing product data to the industry for over 20 years, Synaptic methodology is unique as it requires providers to verify and sign off data, ensuring accuracy. The following is an example of the kind of providers and products available for research within the Synaptic research tool-set.

If your organisation could benefit from the integration of Synaptic data and services, please call us to discuss on 0800 783 4477.