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So Advisers Have Access to More Data – Now What?

Xignite

Investment News FintechData aggregation is currently one of the hottest topics in the financial services industry. As technology evolves and robo-advisers attempt to snatch clients, advisory firms are seeking new ways to stay competitive.

What better way than pulling in information on all of a client's finances in real time?

Although the notion of incorporating held-away assets into an adviser's view is decades-old, in general advisers have been slow to incorporate the digital account-aggregation services that software vendors offer.

Some even feel that the process may be a waste of time.

Data-management experts are assuring advisers that's not the case.

"Most advisers have just a partial view of assets based on an investor's profile," said Stephane Dubois, chief executive of Xignite, a data analytics and aggregator. "Without knowing that, they don't necessarily provide that holistic advice."

There are ways advisers can dive into the data to reap the best results in a time-efficient manner.

Lowell Putnam, chief executive of Quovo, a data aggregator, said advisers need to first ensure that they are pulling data from all of the accounts a client has. Through Quovo's platform, advisers can invite their clients to share their financial information without sharing their login credentials.

"What you get out of it depends partially on what you and your clients put into it," he said, suggesting that advisers ask prospects and clients to share this data in order to enable the creation of customized financial plans.

"If they are willing to share that information with you, it streamlines the process," Mr. Putnam said. "We find advisers do very well when they aggregate client accounts, even before they have become clients."

Clients should be engaged in the process of gathering and applying data insights from the very beginning.

David Benskin, chief executive of Wealth Access, a data-aggregation platform, said that having an easy-to-use portal helps. It also keeps advisers competitive against the likes of robo-advisers.

"Where robos excel is the client-engagement piece," Mr. Benskin said. "The client has to be inspired or initiated and want to provide that information."

The trick to getting clients to jump on board is to provide an immediate result or insight for the client so they see something positive come out of the process.

Mr. Benskin said that using data aggregation through software highlights identifiable objects like a high interest rate for a mortgage or too much credit card debt. They can analyze "the overall balance sheet," he said.

Mr. Putnam suggests providing something tangible to clients as well, such as a report of all of the aggregated accounts, even if it's at first a basic overview.

"It's a big ask to share credentials online, so clients need to see benefits," he said. "You have to be able to show something back to the end client."

Many software platforms have that aspect covered, especially as more and more vendors team up with one another.

AdvisoryWorld, a financial planning, asset allocation and investment analysis software provider, recently announced that it will use data aggregator Intuit through their integration with Orion Advisor Services, a wealth management technology provider, to analyze client data.

"Advisers are getting more and more value out of this type of data," Mr. Wilson said. "It is only going to get better the way aggregators are opening up their pipes."

Indeed, they are. Take for example, financial services technology provider Envestnet, which recently acquired data aggregator Yodlee, or Quovo, which recently finished up a funding round with participants including Ron Carson, Steve Lockshin and Marty Bicknell.

Sue Glover, the founder and president of Susan Glover & Associates, a financial services technology consultancy, said there's a lot that advisers can and should do with the client data they collect — such as map available data with the goals of the client to provide a better story for what they have and where they're going. However, she wonders how much information is too much information.

"Do clients really want planners knowing their credit card balances or mortgages?" she said. "If they don't want to save, then it might become an issue or seem too much like Big Brother is watching."

While that may be a concern, advisers will need to stay focused on why they're incorporating personal financial data: to provide a better personalized plan for their clients.

"This isn't a Big Brother mentality," Mr. Putnam said. "It's really what we call the 'big bro,' a hand on your shoulder and giving advisers better insights to achieve your goals."

Source: Investment News

RECENT NEWS

Xignite, Inc., a provider of market data distribution and management solutions for financial services and technology companies, announced today it has enhanced the data coverage for its’ interbanks and interest rates APIs in preparation for the required transition from the London Interbank Offered Rate (LIBOR) benchmark interest rate at the end of 2021.

Used in financial products such as adjustable-rate mortgages, consumer loans, credit cards and derivatives, LIBOR has been the world's most widely used benchmark for short-term rates. But after the 2008 financial crisis the U.S. Federal Reserve recommended a new benchmark interest rate to replace the outdated and problematic LIBOR. In the U.S market the new benchmark is Secured Overnight Funding Rate (SOFR), which is based on transactions in the U.S. Treasury repurchase, or repo, market, where banks and investors borrow or lend Treasuries overnight. Other countries are introducing their own local-currency-denominated alternative reference rates for short-term lending.

Xignite banking, and Fintech customers that build apps for capital markets, investment management, financing, and foreign currency exchange purposes, require interbank and interest rates data to manage exchange and interest rate risk. Xignite enhanced its Interbanks and Rates APIs with SOFR earlier this year and has now added four of the alternative overnight risk-free rates (RFRs) recommended to replace LIBOR for currencies in respective markets. The new rates include Euro Short-Term Rate (ESTR), Swiss Reference Rates (SARON), Sterling Overnight Index Average (SONIA), and Tokyo Overnight Average Rate (TONAR). These additional rates are available now at no additional cost to customers.

“Our rates and InterBanks APIs were the first REST APIs ever released to serve the needs of the lending and banking industries. They uniquely aggregate rates that are used by dozens of firms globally in critical business processes,” said Vijay Choudhary, Vice President of Product Management for Xignite “Given the major shift the industry is experiencing regarding reference rates, it was critical for us to support those new rates to give our clients the data they need to run their businesses,” added Choudhary.

Xignite’s Interbanks API offers real-time and historical interbank and deposit rates for currencies in 40 countries. Xignite’s Interest Rates API provides interest rate data for over 600 global treasury, money market and private capital market instruments and benchmarks. The new alternative T+1 (24hr+ delayed) rates include:

  •         Europe: Euro Short-Term Rate (ESTR) is an interest rate benchmark that reflects the overnight borrowing costs of banks within the eurozone. The rate is calculated and published by the European Central Bank.
  •         Switzerland: Swiss Reference Rates (SARON) represents the overnight interest rate of the secured money market for Swiss francs (CHF). The rate is calculated and published by SIX.
  •         United Kingdom: Sterling Overnight Index Average (SONIA) is the effective overnight interest rate paid by banks for unsecured transactions in the British sterling.
  •         Japan: Tokyo Overnight Average Rate (TONAR) is an unsecured interbank overnight interest rate and reference rate for the Japanese yen. The rate is calculated and published by the Bank of Japan.

About Xignite

Xignite has been disrupting the financial and market data industry from its Silicon Valley headquarters since 2006, when it introduced the first commercial REST API. Since then, Xignite has been continually refining its technology to help fintech and financial institutions get the most value from their data. Today, more than 700 clients access over 500 cloud-native APIs and leverage a suite of specialized microservices to build efficient and cost-effective enterprise data management solutions. Visit http://www.xignite.com or follow on Twitter @xignite.

06/09/2021

Xignite, Inc., a provider of cloud-based market data distribution and management solutions for financial services and technology companies, today introduced XigniteGlobalCorporateActions, a new advanced API providing detailed corporate actions data for events such as stock splits, dividends, mergers, and spinoffs. The COVID-19 pandemic has led to a dramatic increase in corporate actions, annual meetings canceled, dividend payouts suspensions, and an accelerated company mergers and acquisitions rate. Knowing when a company plans to offer a split or undertake an acquisition is critical for buy-side and sell-side firms.

Corporate action processing is one of the “last frontiers of pain” for investment management, and one of the most manual and complex parts of back-office operations. The lack of uniformity and standards makes it difficult to identify and interpret information correctly. Obtaining accurate and timely information is challenging, and errors can result in painful financial losses. The XigniteGlobalCorporateActions is the first cloud-based REST API to eliminate the pains and complexity caused by legacy data feed and files. The API provides a single-source data stream with consistent information gathered from more than 190 exchanges and over 30,000 U.S. mutual funds.

The recent split of TSLA and AAPL stock on the same day illustrates the complex and far-reaching impact of corporate actions. If a firm does not do this correctly, it will show on historical charts, and their customers will notice. Xignite’s Data Quality team cross-validates our corporate actions data across sources and proactively detects and fixes any missing information. This prevents missing issues such as the TSLA and AAPL splits.

“The industry is facing a ‘perfect storm’”, says Vijay Choudhary, Vice President of Product Management for Xignite. “On one hand you have a massive wave of corporate actions fueled by the pandemic and the rising markets, and on the other you have millions of new retail investors eyeballing their investment applications all day long. One bad corporate action can send your customer service department into a tailspin,” added Choudhary. Additional detail on the Corporate Actions API endpoints:

GetDistributions - Returns cash and stock dividends as declared by the company for a requested security and date range.

GetDistributionsByExchange - Returns cash and stock dividends as declared by the company for a requested exchange and date.

GetEventSummaries - Provides a high-level overview of events for a requested security and date range.

GetMergers - Returns merger events for a given identifier and date range.

GetSpinoffs - Returns spinoff events for a given identifier and date range.

GetSplits - Returns the stock split history for a security for a specified date range.

GetTakeovers - Returns takeover events for a given identifier and date range.

Xignite

Xignite has been disrupting the financial and market data industry from its Silicon Valley headquarters since 2006 when it introduced the first commercial REST API. Since then, Xignite has been continually refining its technology to help fintech and financial institutions get the most value from their data. Today, more than 700 clients access over 500 cloud-native APIs and leverage specialized microservices-delivered modules to build efficient and cost-effective enterprise data management solutions. Visit http://www.xignite.com or follow on Twitter @xignite

05/18/2021

In the foreign metal market and the world of international rates, currencies play the crucial role of acting as the medium of exchange in the transactions that take place.

Currencies like the United States dollar, the Euro, or the British Pound are commonly used around the world in order to get a metal rate. Some companies that offer precious metal live and historical rates have exposed their APIs (Application Programming Interfaces) to allow developers to integrate current and historical metal rates, currency conversion, or other capabilities into their applications.

In order to know about precious metals live and historical rates, there’s a lot of APIs available online, and if you want to try one, Barchart is going to be one of your first options. But if you take a look at what else is in the market, you’ll find alternatives so many great alternatives:

Xignite Market Data Cloud Platform

Xignite Market Data as a Service was one of the first market data services built to run in AWS and they are one of the few vendors that is an AWS Advanced Technology Partner with a Financial Services Competency.

With more than a decade of cloud expertise in building, scaling and operating cloud-based market data technology, it is no surprise that leading financial services and capital markets firms rely on this company to empower their journey to the cloud. Their Metals API Service offers real-time prices and quotes for metals including Gold, Silver, Palladium, Platinum and other base metals. In addition to real-time precious metals prices, the service provides daily London Fixing prices as well as historical precious metal prices and metal news. 

Xignite Cloud APIs are sourced from leading providers such as FactSet and Morningstar as well as Xignite’s own curated, high-quality data.

Read the article Top 3 Alternatives for Barchart Precious Metals Rates

02/25/2021