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Top Banking APIs Enabling Access to Aggregated Rich Financial Data

Xignite

Article by Elena Mesropyan

Banking APIs constitute the core of innovative approach to building financial products. Enabling access to data for all relevant participants of the market creates an opportunity for each of them to build a superior offering as well as for consumers to make better choices of financial products.

As the Competition and Markets Authority states in the report on retail banking, APIs “make life simpler for millions of us every day by enabling us to share information, for example, about our location. They are the hidden technological drivers behind digital applications such as Facebook, Google Maps and Uber.”

A variety of banking APIs providers has expanded opportunities for entrepreneurs to build solutions for different segments of the financial services industry:

Financial data aggregators are some of the most interesting elements of financial APIs ecosystem as they drive valuable insights on customers’ financial behavior and enable a data-driven approach to building financial products. Financial data aggregators also comprise the basis of a responsible approach to personal finance management and are in the foundation of consumer-empowering products.

Over the past several years, FinTech innovators have been enriching the banking APIs list with exquisite examples of advanced solutions aimed to empower financial institutions and customers. In fact, the concept of open API approach became one of the centerpieces of innovation in the financial services industry largely because of the companies we will be speaking of further.

Banking APIs are known to enable banking customers – through a single application – to manage accounts held with several providers. They also allow customers to authorize the movement of funds between current and deposit accounts to help avoid overdraft charges or to benefit from higher interest payments. They let customers make simple, safe and reliable price and service quality comparisons tailored to their own usage patterns.

For businesses/institutions, banking APIs allow to monitor a current account and forecast a customer’s cash flow. Using businesses’ transaction history, API providers allow a potential lender to reliably assess business’s creditworthiness and offer better lending deals than they would without this information.

Leading providers of data aggregation APIs:

Kontomatik API

Kontomatik offers a read-only API for financial institutions, enabling them to import personal data, account balances and full statements from any supported bank to their system. To do that, Kontomatik uses end-user bank credentials (a bank login and password). The solution ensures top-notch security as Kontomatik servers store very little data. Bank passwords are never stored and financial data is removed ASAP (financial data is removed from Kontomatik servers in a 24-hour moving window. API clients, however, can force data removal at any time). Kontomatik API requires two-factor authentication based on an API key and IP whitelist.

Kontomatik supports all major banks in ten countries on three continents and is ready to develop APIs for other countries upon request. Kontomatik supports the accessing of personal data of the account owners, current and saving accounts and transaction history from those accounts.

Under the hood, Kontomatik o mimics a human using a Web browser. By using the very same protocol as a Web browser, Kontomatik can potentially support any bank worldwide in a permissionless way. Kontomatik does not need agreements with all the supported banks as it exemplifies permissionless innovation. Kontomatik natively supports hardware tokens, SMS codes, mobile-application-generated one-time passwords, CAPTCHA pictures, anti-phishing pictures and other types of user authentication

Kontomatik is known for speed among competing solutions because the company does not run a farm of headless browsers and does not run any JavaScript as well as not download any assets. Kontomatik reverse engineers how HTTP requests are put together and then recreates them directly in Java with no overhead.

Among the banks supported by Kontomatik technology in various countries are Deutsche Bank, mBank, Raiffeisen Bank, Santander, Citibank, HSBC, BBVA, Scotiabank, Alpha Bank, Lloyds, Barclays, etc. Kontomatik is the fastest-growing banking API provider and has been distinguished by BBVA among the three most interesting examples in the data aggregation APIs segment. Next to this, Kontomatik has been defined as one of the five most useful APIs in the financial world by Huffington Post.

Xignite

Xignite APIs are used by over 40 startups with the clientele including companies such as Betterment, Wealthfront, Personal Capital, Yodlee, Oracle, SAS, Sungard, Charles Schwab, Navy Federal Credit Union, TD Ameritrade, Brinks, GE and Starbucks.

A particular API of the company called the ‘FactSet Fundamentals’ is one of the first REST-based APIs to provide accurate and trusted historical financials, fundamentals, earnings and more across more than 170 global exchanges. FactSet Fundamentals joins more than 40 other APIs for financial services in Xignite’s API library. APIs from Xignite provide back-end data integration, powering a lot of financial service ventures.

Plaid

Plaid gives developers the tools to integrate with bank infrastructure and the ability to access and authorize user bank accounts. Plaid offers two primary products through its APIs that allow users and developers to effortlessly interact with financial institutions: Plaid ACH Auth and Plaid Connect.

Plaid Connect allows developers to dig into the narrative by collecting transactional data from credit, debit, checking, savings and more accounts in a clean, usable format. It intelligently matches the merchant name, category, location and address of each purchase.

Fidor Bank

The Germany-based bank offers a standardized set of RESTful APIs and management systems handled with OAuth for authentication. With Fidor, each user can receive a specific customer ID and associated bank account. Deploying the Fidor API, requests can be made for third party payments or transfers. Single transactions, as well as batch transfers or direct debit withdrawals, can be made using a single API-driven procedure. Web-based requests can be made to retrieve user information such as ID & customer email. The API enables developers to access general account management features.

Fidor combines a full banking license with its own technology and open bank APIs. The fidorOS has been designed to work with an existing core banking system and is expandable beyond traditional banking services. The banking platform is a middleware that provides support for social trading and lending, virtual currencies and emergency loans without being tied to any legacy code.

Figo

Figo Connect API allows to easily access bank accounts including transaction history and submitting payments. Bank accounts are the central domain object of this API and the main anchor point for many of the other resources. This API does not only consider classical bank accounts as accounts but also alternative banking services, e.g. credit cards or PayPal. The API does not distinguish between these two in most cases.

Figo Connect is a completely RESTful API and aims to follow as many best practices as possible. The API and its online tools are only available via HTTPS. In addition, its SDKs employ certificate pinning to validate the certificate of the API server to extend beyond the SSL trust chain.

Yodlee

Yodlee Interactive, a division of Yodlee, builds APIs to help customers bring innovative FinApps to market more quickly using rich consumer transactional data. It primarily offers the following two APIs: Instant Account Verification API and Aggregation API, which enables developers to get access to randomized and securitized bank data through the ability to aggregate accounts, whether it’s an investment account, a bank account, a credit card account, a rewards account, an insurance account or some other account.

Besides the above two, the company has launched an Enterprise API, custom-built and co-branded for individual financial institutions. Yodlee’s API also allows geolocation information to be added to financial data. Yodlee developers launched a new set of restful APIs called “FastLink” that helps a user link multiple bank accounts and cards in one place with an easy drag and drop feature at the back-end.

Pich

Pich is banking and financial data provider. The company organizes, collects and aggregates this data for businesses and developers so that they can use it in their services. With the help of Pich’s API, the user can quickly integrate to the banking infrastructure and benefit from the reliable data of these financial institutions.

Pick Link API allows aggregating user-mandated data from accounts across multiple financial institutions. The Pich API provides business and developers with reliable, clean, and enriched transaction data in a machine-readable format. Pich maintains a dormant connection that becomes active the next time the user accesses the application, providing them with the most up-to-date information associated with the account.

Instantor

Instantor provides online identification and financial data reports based on real-time technology, giving insight to customer’s financial situation (i.e. salary level, spending habits, payday loans, other credits and gambling, etc.) over the last 12 months. This is done through a connection to the bank in which the customer is a client.

Open Bank Project

The Open Bank Project is an open-source API and app store for banks that empower financial institutions to securely and rapidly enhance their digital offerings using an ecosystem of third-party applications and services.

The Open Bank Project offers an easy-to-use RESTful JSON API that can be connected in minutes to enable integration of bank account information via REST API and use of secure authentication via OAuth implementation. The Open Bank Project exposes transaction data in a simple and consistent structure by abstracting away the peculiarities of each banking system. This is achieved by “connectors” that interface between the OBP API and each core banking system. This enables application developers to write an app once, and use it for many banks.

The Open Bank Project API supports transparency services via multiple configurable views on transaction data so that, for instance, the public may see most details of an NGO’s transactions whilst still preserving privacy where required. It also supports transaction data enrichment: comments, tags and images may be added to transactions by authorized users, creating a dialogue around the data.

Spectre API by Salt Edge

Salt Edge provides account data aggregation, automatic categorization, customer-oriented money management, screen scraping software, omnichannel banking solutions with client analysis and targeted marketing.

Spectre API by Salt Edge is designed both for startups and innovative enterprises who need permission-based access and bank-level security to access their customers’ multiple account types including checking, savings, credit cards, e-wallets, money-market accounts, prepaid cards, investments, insurance, loans and mortgages.

This list of banking APIs providers offering data aggregation tools is certainly not exhaustive, but it does outline some of the most influential players. Among the mentioned companies, Kontomatik can be distinguished as one of the most adopted and fastest-growing banking technology providers with superior solutions in its arsenal.

Source: Let's Talk Payments

RECENT NEWS

By Max Bowie - Waters Technology

NICE Actimize has fortified the datasets available for use in its Surveil-X trade surveillance tool, using exchange prices and other data from Swiss vendor SIX, delivered via Xignite’s new suite of microservices for content distribution and data management.

The vendor is preparing to go live with the joint solution “any day now,” after completing some final data validation, says Sam Sundera, head of future business at SIX, who is based in the San Francisco Bay Area, and is responsible for dealing with partners, new technology data and initiatives, and with banks’ innovation labs.

A subscription to Waters Technology is required to read this article.

07/23/2020

The Two Companies Deliver Industry’s Largest Global Coverage Sourced from 1,800+ Trading Venues Via Hyper-Scalable Cloud APIs

Xignite, Inc., a provider of market data distribution and management solutions for financial services and technology companies, and SIX, today announced a strategic partnership. Xignite and SIX are now offering real-time data from the catalog of SIX which includes 1,800+ global exchanges and trading venues via Xignite Enterprise Microservices, a suite of cloud-native market data management services built to transform how firms store, distribute, manage, and control market data in the cloud. The partnership accelerates the transition of large financial institutions and fintechs to the cloud. This is the first time such a comprehensive set of market data has been offered to the market via a native cloud solution.

Xignite’s battle-tested cloud-native solution currently serves more than 12 billion API calls per day to 750 clients around the world--making it the largest cloud API platform in capital markets. Xignite recently introduced Xignite Enterprise Microservices, a suite of vendor-agnostic services large firms can deploy to migrate their market data infrastructure and any of their existing data sources to the cloud.

“Large financial institutions have been looking for cloud-native market data solutions capable of handling their broad coverage requirements and offering a state-of-the-art customer experience.” says Stephane Dubois, CEO and founder of Xignite. “The pandemic has worsened the situation as firms want to get away from maintaining complex and expensive on-premise infrastructures that are overkill for most of their needs,” added Dubois. “We had the enterprise technology but not the coverage, so partnering with SIX made sense. We are thrilled to partner with SIX and be first to market with a true global enterprise solution.” 

SIX is one of the few market data vendors offering full coverage of the global capital markets. The Market Data Feed (MDF) from SIX delivers a steady stream of global market information that is consolidated, standardized and in real time. With MDF clients get access to over 30 million instruments across all asset classes and from more than 1,800 exchanges, OTC markets, and other trading venues. The combined solution integrates the MDF feed from SIX delivered from hosted collocation facilities to Xignite Enterprise Microservices deployed in the client’s own cloud account. The Xignite Real-Time Microservice is used to distribute real-time data internally or externally from the cloud via scalable APIs while the Xignite Entitlements and Usage Microservice provides control and transparency of data consumption and usage.

“Partnering with Xignite is a great leap for SIX in making its market data easily available to all buy-side and sell-side professionals. While making the richness, depth and wide coverage of our Market Data Feed available via Xignite’s cloud-based solution, we offer clients streamlined access to the highest quality data without a complicated acquisition process, burdensome integration or costly development,” commented John McManus, Head Sales, Financial Information, SIX.

About Xignite

Xignite Makes Market Data Easy. Xignite is leading the disruption of the market data industry with its AWS-based financial data distribution and market data management solutions. Xignite’s Market Data Cloud platform provides market data managers full transparency on the usage of a firm's first-level real-time and reference data - making it easy for data owners to entitle, control consumption, comply with licensing requirements, allocate costs, and resolve vendor audits or invoice discrepancies. Xignite also powers financial data-driven robo-advisors, online brokerages, and investing apps with its real-time, delayed, and historical pricing data offered via 500+ REST Cloud APIs. Visit http://www.xignite.com or follow on Twitter @xignite.

About SIX

SIX operates and develops infrastructure services in the Securities & Exchanges, Banking Services and Financial Information business units with the aim of raising efficiency, quality, and innovative capacity across the entire value chain of the Swiss financial center. The company is owned by its users (122 banks). With a workforce of some 2,600 employees and a presence in 20 countries, it generated operating income of CHF 1.13 billion and Group net profit of CHF 120.5 million in 2019.
 www.six-group.com

07/23/2020

Xignite, Inc., a provider of market data distribution and management solutions for financial services and technology companies, announced today it has created a new program to assist early stage and start-up financial technology companies during the COVID-19 pandemic. To apply for this program visit https://www.xignite.com/fintech-development-program/

The costs associated with developing and launching fintech products and apps can be daunting, even in the best of times. A particularly challenging aspect can be the procurement of quality financial and market data. Hidden fees, restrictions on the use of data, poorly written APIs and exchange requirements are just some of the factors, in addition to costs, that can make it difficult for new or small fintechs to survive.

To assist early stage fintech companies, Xignite is inviting these disruptors to leverage the same technology and data APIs that have helped move the industry forward over the last decade. Through this program, companies can continue to develop their ideas and products without a significant capital commitment. Participants will be able to take advantage of development access for 60 days on Xignite’s most popular financial data APIs and enjoy significant discounts on fees for the first year. Also included in the program is access to real-time, 15-minute delayed and end-of-day stock prices, company data, currency exchange rates, indices, corporate actions and master data.

“Not only are we offering a compelling financial incentive, but companies will have access to the experts on our Product and Engineering team who not only first brought financial market data to the cloud, but also helped support and power some of the biggest disruptors in the industry such as SoFi, Robinhood and Betterment,” said Ryan Burdick, Senior Vice President and Global Head of Sales at Xignite. “By introducing this program, Xignite is able to support the next wave of entrepreneurs by helping to keep their visions moving forward as seamlessly as possible during this unprecedented time.”

About Xignite

Xignite Makes Market Data Easy. Xignite is leading the disruption of the market data industry with its AWS-based financial data distribution and market data management solutions. Xignite’s Market Data Cloud Platform provides market data managers full transparency on the usage of a firm's first-level real-time and reference data - making it easy for data owners to entitle, control consumption, comply with licensing requirements, allocate costs, and resolve vendor audits or invoice discrepancies. Xignite also powers financial data-driven robo-advisors, online brokerages, and investing apps with its real-time, delayed and historical pricing data offered via 500+ REST Cloud APIs. Visit http://www.xignite.com or follow on Twitter @xignite.

07/14/2020

NICE Actimize Gains Agility and Scalability Bringing its Real-time Market Data Infrastructure to the Cloud

Xignite, Inc., a provider of market data distribution and management solutions for financial services and technology companies, today announced the launch of Xignite Enterprise Microservices, a powerful suite of cloud-native market data management services built to transform how firms store, distribute, manage and control market and financial data in the cloud. NICE Actimize, the leading global provider of financial crime, risk and compliance solutions is the first user of the new Real-time Microservice solution.

Microservices are an architectural approach in which core functionality is handled by loosely coupled, independently deployable components that can work together or separately. Because you can deploy microservices as separate functional units, you can pick and choose the functionality you want and scale them massively at the lowest possible cost. Microservices stand in stark contrast with monolithic platforms that require many dedicated on-premise servers which are expensive to manage, often under-utilized, can’t scale on-demand and require frequent updates and upgrades for even minor changes. Most enterprise platforms also require firms to pay for capabilities that are not needed.

The Xignite Enterprise Microservices run on Xignite’s battle-tested cloud-based architecture that currently supports more than 250 different data sources and 12 billion API calls per day for over 750 fintech and financial services clients. Financial institutions can now leverage the same cloud technology Xignite has been refining and scaling for more than 10 years to move their own financial and market data to the cloud. Xignite’s microservices are built from the ground up for the cloud, in contrast with legacy data providers that are attempting to “lift and shift” their monolithic platforms for that purpose.       

Xignite Enterprise Microservices are vendor-agnostic and can bring transformative results to any data set a firm may license or collect from vendors such Bloomberg, FactSet, ICE Data Services, SIX Financial, Vela Trading, QuantHouse and many others, as well as in-house proprietary data.

“We are incredibly excited to launch Xignite Enterprise Microservices, which we believe will truly revolutionize market data management,” said Stephane Dubois, Founder and CEO of Xignite. “The culmination of over 10 years of nonstop innovation, we have taken the cloud-native architecture that has powered some of world’s most prominent fintechs and scaled it to meet the unique requirements of institutional players that consume huge amounts of data but often have no way of integrating and optimizing it in an efficient and cost-effective way. Firms are no longer required to hitch their wagon to a single provider – instead, they can use a combination of our microservices to secure all the benefits they would get from a rigid legacy offering. We are the only vendor offering a suite of market data management microservices that clients can mix and match to create a comprehensive, infinitely scalable cloud-based solution that meets their exact needs. We firmly believe that offerings like these are the future of market data, and we are thrilled to once again take a leading role in the financial services industry’s continued digital transformation.”

The suite includes seven cloud-native microservices targeted to buy-side, sell-side and fintech firms, as well as exchanges:

  • Xignite Data Lake Microservice is a cloud-native data management and distribution solution that centralizes existing data and enables financial services firms to provide easy access to the data via highly scalable cloud APIs, reducing costs and improving efficiency by eliminating legacy infrastructure.
  • Xignite Optimization Microservice is a cloud-native pricing and reference data cost optimization solution that enables the control of large reference data sets, such as Bloomberg Data License, via intelligent caching, sophisticated entitlements and advanced analytics and reporting.
  • Xignite Entitlements and Usage Microservice is a cloud-native market data access control and reporting solution that enables financial services firms to have complete control and transparency of data consumption and usage, and provides reports of data usage across various data sets, users and applications to ensure vendor compliance.
  • Xignite Reference Microservice is a cloud-native solution that aggregates, normalizes, stores and indexes reference data from multiple vendors across all asset classes into a centralized repository and access layer, enabling centralized access across the entire enterprise and improving data consistency, completeness and timeliness.
  • Xignite Historical Microservice is a cloud-native time-series data management solution that enables financial services firms to capture historical data from different sources and integrate with security master and corporate actions data to provide a fully normalized, stitched and adjusted historical data view via highly scalable cloud APIs.
  • Xignite Real-Time Microservice is a cloud-native real-time data distribution solution that enables financial services firms to distribute real-time data internally and externally via highly scalable and flexible cloud APIs, eliminating on-premise infrastructure.
  • Xignite Fundamentals Microservice is a cloud-native data management solution that enables financial services firms to capture simple or complex time-series data structures associated with an entity such as a regional level security or issuer, and make them available via specialized and highly scalable cloud APIs.

These microservices are already transforming how the industry manages data. NICE Actimize, a leading provider of financial crime management solutions, has replaced its legacy solution with the Xignite Real-Time Microservice to onboard and manage multi-asset class, level 1 and 2 co-located feeds from multiple sources.

The launch of Xignite Enterprise Microservices is the latest highlight in what has been a hugely successful year for the firm. Last month, Xignite received a patent for its alerts technology and the company was named a SIIA CODiE Awards finalist and added to the WealthTech 100 list.

About Xignite
Xignite Makes Market Data Easy. Xignite is leading the disruption of the market data industry with its AWS-based financial data distribution and market data management solutions. Xignite’s Market Data Cloud platform provides market data managers full transparency on the usage of a firm's first-level real-time and reference data - making it easy for data owners to entitle, control consumption, comply with licensing requirements, allocate costs, and resolve vendor audits or invoice discrepancies. Xignite also powers financial data-driven robo-advisors, online brokerages, and investing apps with its real-time, delayed and historical pricing data offered via 500+ REST Cloud APIs. Visit http://www.xignite.com or follow on Twitter @xignite.

07/08/2020