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The API Economy Comes for FinTech and Digital Finance

Xignite

by: Grow VC Group

Once upon a time many companies were able to manage their whole infrastructure and implement all services alone for their customers. Telecom operators offered the telephone services – including value added services – and tried to make the ecosystem more dynamic with their own intelligent networks. And they wanted to manage applications in mobile phones too.

Banks were able to manage the finance needs of ordinary people, like lend money, pay interests to savings, help with wealth management and handle money transfers. Manufacturing companies had their own machines and IT that was their own proprietary territory. But this time is over, and now companies must survive in the API (application programming interface) economy.

APIs as such are not such a new idea. Operating systems, databases and many software solutions have had APIs for decades. Newer things are open APIs, web APIs and the API economy. This involves companies opening their own platforms or solutions for third parties to innovate and develop new applications on the top of their own solutions. It also means new earnings models, accelerated innovating and more networked business models.

In the telco world we have seen that carriers cannot dominate the business anymore and they have become bit pipes. Carriers tried to fight against the bit pipe development for years, but it wasn’t very successful fight. Broadband connections moved all services in the network to be from third parties in the Internet.  With mobile data connections the iOS and Android application environment left the carriers only transferring data. Telcos and on the phone side Nokia were companies that very much tried to dominate alone with their systems and applications. But they were not able to compete with solutions where basically anyone had the opportunity to develop a new application.

Successful internet giants, like Salesforce, Amazon, Google, Twitter, and Facebook, have been active to offer APIs to third parties. Salesforce has earned more than half of its revenue through APIs, not from its own user interface. Twitter, Netflix, and Google handle billions of transactions through APIs daily. And we can say Amazon has been a pioneer with open APIs – the online retail giant already had an Amazon Store API back in the early 2000’s. We have good reasons to say that these companies couldn’t have been as successful as they are without open APIs.

Now we are moving to a new era of the API economy when APIs are no longer the  territories of internet and mobile companies alone, and instead are implemented in basically any industry. This trend is also linked to the fact that the internet and mobile are becoming a fundamental part of all industries and businesses. And some companies in traditional businesses have concerns that are very similar to the ones telcos used to have.

Fintech and digital finance are changing finance services. And banks have similar fears as telcos did 15 years ago. Soon they might have an expensive and regulated infrastructure on their hands, but with all new and attractive services flowing to third parties like online investing, lending, and wealth management services, online and mobile payment and money transfer services, and robo-advisor type automated services. And APIs have an important role to play in this.

Some banks have also become more active in this development, for example, BBVA develops banking APIs. At the same time many fast growing new-comers offer many kind of finance APIs, for example, Crowd Valley for finance back office for lending and investing, Stripe for payments, DealIndex for Alternative Finance data. Xignite for public market data and GBGroup for identity verification.  These are just some examples, but they illustrate how many things can already be done today over an API in the finance world. Banks have good reasons to worry.

But it is not only the finance and telco world where this happens. The same happens also in the traditional manufacturing industry, when we start to see concepts like Industry 4.0 (read Industry 4.0 – Another type of revolution) where shared manufacturing infrastructure, 3D printers and logistics have key roles. And IoT very much needs open APIs and an API ecosystem, when all kind of devices, data bases, and applications must talk to each other. Travel and flight booking services are already in the API economy and the public sector goes there too e.g. with open data concepts.

APIs, shared resources, and networked business models are key components of innovations and new development in most industries. Even the last companies must soon realize that they cannot develop and control everything alone, they must use services from other companies and open their own services to third parties. The success is measured much more on how you can be a hub in the API economy than build the largest infrastructure alone. And all this has a lot of impact on business models, partnership models and organization culture too.

The article was originally published at TelecomAsia.

Digital Finance API Ecosystem

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Each year, Bobsguide asks the market to vote for fintech companies they believe stand out from the competition – those who have gone the extra mile in terms of development and servicing their clients. Xignite is proud to be listed as the "Best API Management" vendor on the Bobsguide 2020 Rankings.


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Web services data provider Xignite captured the AFTAs judges’ attention on the infrastructure front with its release of Xignite Enterprise Microservices in July 2020, a suite of cloud-based microservices for data management, storage and distribution in the cloud, designed to help financial firms migrate from monolithic legacy data architectures to more agile and less expensive cloud services and data sources.

Requires subscription to read the article on WatersTechnology

01/25/2021

Xignite, Inc., a provider of market data distribution and management solutions for financial services and technology companies, today revealed the results of its collaboration with StockCharts, a leading technical analysis and financial charting platform for online retail investors. The collaboration involved a move from an on-premise market data provider to Xignite’s cloud-native technology hosted in Amazon Web Services (AWS). Download the case study containing the full results.

StockCharts requires vast quantities of financial data to power its visualization, charting and tracking tools, which investors use to analyze the markets to help with investment decisions. The company was frustrated by the limits of its on-premise market data center, which was forcing the team to make architectural decisions based on what its data center could handle in terms of speed and storage, not on their technology. Its previous market data provider was just starting to build out some cloud offerings, but they were far away from what the business required. StockCharts decided to migrate its infrastructure to the AWS cloud and partner with Xignite to gain access to endlessly scalable market and financial data delivered through innovative cloud APIs.

The collaboration made an immediate impact as StockCharts was able to expand its offerings and customer base by pursuing growth strategies enabled by Xignite’s cloud-based approach, which provides easy access to data and eliminates architectural limits on storage and speed.

The pandemic provided further validation. Seattle-based StockCharts was in one of the first areas hit by COVID-19 and was forced to quickly shut down its office. Pandemic-driven market volatility followed and StockCharts customers wanted to visualize what was happening. The company’s ability to scale quickly and accommodate a high volume of new requests would not have been possible without Xignite.

“The move to the AWS cloud and Xignite has unlocked tremendous new potential for us in a lot of architectural ways, and has given us a lot of data options that we could not even consider before,” said Grayson Roze, Vice President of Operations at StockCharts. “It relieved us of the burden of figuring out how to source things. Instead, we know exactly where we need to go to get the data and can access it instantly. That is a huge, huge benefit for our business.”

“We are proud to have played a role in transforming how StockCharts approaches data,” said Stephane Dubois, CEO and Founder of Xignite. “The events of this year unleashed a massive spike in retail trading and a host of other unexpected forces that reinforced the need for financial services firms to leverage the cloud. Despite the disruption of this year, StockCharts was positioned for success, and we look forward to continuing to deliver our financial and market data solutions to the industry at large.”

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-delivered modules to build efficient and cost-effective enterprise data management solutions. Visit http://www.xignite.com or follow on Twitter @xignite

01/12/2021

Xignite, Inc., a provider of cloud-based market data distribution and management solutions for financial services and technology companies, today announced that its Market Data Management-as-a-Service solution has been named “Best New Technology Introduced over the last 12 months – Infrastructure” at the 2020 WatersTechnology American Financial Technology Awards (AFTAs). Selected by the editors of WatersTechnology, the AFTAs recognize excellence in the deployment and management of financial technology within the asset management and investment banking communities.

Xignite’s Market Data Management-as-a-Service (MDMaaS) solution enables buy- and sell-side firms to centralize the management of vendor data feeds into their own cloud environment. The solution is built around the cloud microservice-based architecture and technology stack Xignite has been refining and scaling for more than 10 years. Xignite’s technology platform has been the backbone of the company’s Data-as-a-Service business, daily supporting 12 billion API requests of financial data for their 700 fintech and financial services clients. Now Xignite is leveraging this battle-tested cloud-native data management architecture to offer buy- and sell-side firms a market data vendor agnostic offering, with connectors available for firms to load data they license from Bloomberg, Refinitiv, ICE and numerous other providers.

The MDMaaS solution includes a suite of loosely-coupled modules that enable market data user firms to control their data usage, automate entitlements, optimize their data spend and minimize liabilities by simplifying data governance and ensuring regulatory compliance.

The functionality is delivered via microservices, an architectural approach in which core functionality is handled by loosely coupled, independently deployable modules that can work together or separately. Microservices architecture stands in stark contrast with monolithic platforms that require expensive on-premise technology – that is especially hard to maintain in the context of a pandemic.

The MDMaaS microservice-delivered modules introduced in 2020 include:

Xignite Entitlements and Usage - Manage the entitlement of vendor data to users and applications to ensure compliance and eliminate excess spend.

Xignite Optimization - Streamline data consumption to avoid duplicated vendor requests, leverage cached bulk data and get recommendations to reduce data costs.

Xignite Data Lake - Centralize, catalog and connect data shapes to enable frictionless integration by consumers via unified cloud APIs.

Xignite Reference - Aggregate, normalize, store and index vendor reference data to centralize enterprise-wide access.

Xignite Historical - Provide centralized access to normalized, stitched and adjusted historical data via cloud APIs.

Xignite Real-Time - Distribute real-time vendor data via cloud APIs, eliminating on-premise infrastructure.

Xignite Fundamentals - Make simple and complex time-series data structures available via cloud APIs.

“Xignite has pioneered market data in the cloud for more than 10 years now, so we are very excited to announce – and be recognized for – our Market Data Management-as-a-Service solution,” said Stephane Dubois, CEO, and founder of Xignite. “The pandemic has reinforced the need for financial services firms to migrate to the cloud as a means of navigating disruption and enabling scalability, among other benefits. We are proud to spearhead that effort and help the industry modernize its approach to financial and market data.”

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 via its Data-as-a-Service and Market Data Management-as-a-Service solutions. 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

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