Much like how smartphones transformed communication and access to information, platforms have revolutionised the way financial services are delivered and consumed. Before smartphones, staying connected meant using multiple devices and methods - landlines for calls, computers for emails, digital cameras for photos. Similarly, before platforms, financial employees had to rely on multiple, often siloed systems - one for client interactions, another for trading, another for reporting. Just as smartphones integrated all these functions into a single, user-friendly device, platforms and back-office systems now consolidate a wide range of services which can include comprehensive reporting tools and investment model management, into one place.
Although there is no question that platforms have had a positive impact on the financial industry, technology has advanced even further, and integration options need to be better leveraged for more efficiency and improved customer outcomes.
The value of integration
As the industry moves towards greater digitalisation, the ability to seamlessly connect various systems and data sources is critical not only for operational efficiency, but also for delivering good customer experiences. This is in line with the Financial Conduct Authority’s (FCA) Consumer Duty, which states that firms must avoid foreseeable harm and enable and support customers to pursue their financial objectives.
Application Programming Interface (API) software has allowed organisations to digitally transform and streamline processes, enabling seamless integration between systems. APIs serve as the digital bridges that allow different software systems to communicate in real time, facilitating processes such as instant quotes and real-time reporting.
Common data formats also include CSV, which helps to structure data for transfer between systems. This format ensures data sent from one platform can be correctly interpreted by another, facilitating integration. Some organisations prefer this format over API formats (for example, JSON) for several reasons. Legacy systems are often unable to support API integration, CSV files are universally understood and therefore compatible with almost any software, and implementing APIs requires more technical resource and expertise.
Embracing collaboration
While integration lays the foundation for operational efficiency, collaboration fosters a culture of innovation and growth within the financial services industry. Criterion has over 35 years’ experience bringing organisations together to achieve similar goals. These organisations may view each other as competitors, however, have an understanding that collaboration is key to offering more comprehensive and seamless services.
Working together ensures that the whole industry is working off the same playbook, meaning that different systems and platforms can communicate and integrate more easily and cost effectively.
Criterion Standards
Criterion has a suite of platform Standards that cover multiple processes, to allow for data consistency and effective communication across different platforms and organisations.
Model Portfolio Services (MPS) Standards
Most recently, Criterion published Model Portfolio Services (MPS) Standards for the processes of management information (MI) reporting, edit model and rebalancing on platforms. These Standards support core business reports used by DFMs to manage their models on multiple platforms, and pre and post model rebalancing.
These were designed to provide robust support to DFM and platform organisations, to effectively de-risk key actions, to facilitate the expansion of operational processes, and streamline essential tasks through automation.
The Edit Model and Rebalance Standard is available in Open API/JSON format, and the MI Reporting Standard supports both CSV and Open API/JSON formats, giving DFMs the option of what better suits their needs.
Bulk Standards
Criterion also hosts a suite of Standards to support bulk processes: Contact Enquiry Bulk Transaction History, Contract Enquiry Bulk Valuations and Common Bulk Transfer Declarations.
The Bulk Standards ensure that large volume of transactions and up to date valuations are handled in a single operation rather than individually. This ensures efficiency with transfers and helps advisers by providing an up-to-date view of their clients’ value and investment positions.
Platform Account Opening
Criterion is currently working with the industry to produce Platform Account Opening Standards for self-invested personal pensions (SIPP), individual saver accounts (ISA), general investment accounts (GIA), bonds and Junior SIPP.
These Standards will ensure that customer, product and investment information needed to open a platform account, such as proof of address, can be sent from advisers’ practice management solutions to the target platform, driving efficiency and reducing the likelihood of keying errors.
The Platform Account Opening Working Group is collaborating to develop the best solution to help the industry automate these processes. Becoming a member of this working group will give you a voice ‘at the table’ on how these Standards are formed.
If you’re interested in being a part of our working group, please contact [email protected].
