In this meeting, the State Changers discussed the emerging sector of application program interfaces (APIs) for custodians of financial investments in the UK. These APIs handle all the functionalities of wealth management platforms, from opening client accounts to moving funds. The State Changers recognize that this is a new market with potential for significant profitability.
One of the participants is contemplating becoming a consultant in this space, noting that the budgets for such projects would be sizable. The question of technical knowledge and business credibility was raised, with acknowledgment that if credibility is established, other industry experts can be brought in to help. The group consensus is that from a technical standpoint, the participant is almost ready for the task and can grow to meet any technical challenge. The potential market position looks promising, considering the wealth management industry's intersect with technology and the benefits this solution could offer financial advisors. The group also highlighted the potential ways these new APIs could help firms make money such as reducing operational costs allowing them to serve smaller clients profitably, and gaining better leverage over their counterparties. They concluded that the participant could be instrumental in introducing these changes to the market, offering a consultative view to wealth management firms, and helping them transition smoothly to this promising new model.
(Source: Office Hours 11/1/2023 )
