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APIs, open banking and integrated investments solutions will make wealth management faster and more intuitive.

Today, with the development of APIs[1] and a greater openness of financial actors to open banking, there is a strong demand for integrated investment solutions involving multiple technological platforms to create true ecosystems. The collaboration between Leonteq and the Key is a good example of this. The connection of their digital investment platforms – LYNQS and Efficience - will enhance wealth managers experience with structured products in a portfolio context.

Kevin Dayot
Head of Digital Offering, Leonteq

Bruno Fievet
CEO, The Key

Could you elaborate on the advantages of your digital solutions for independent wealth managers?

KD: LYNQS is a platform dedicated to structured products that offers a set of digital and automated services throughout the investment cycle. This starts with an access to a broad universe of investment ideas across all asset classes. This helps wealth manager to personalize their commercial investment proposals for their clients. We also offer access to a pricing application that enables real-time structuring and issuance of structured products for 15 Swiss and international issuers. Finally, we provide a complete range of tools to monitor products throughout their lifecycle with functionalities such as distance to barrier calculations, cash flow tracking, and real-time portfolio risk analysis.

BF: The Key SA has developed Efficience software, a PMS offering a complete client journey from onboarding to back office. Our portfolio management module allows for monitoring and analyzing transactions and performances, as well as providing a consolidated view to facilitate wealth management. Our risk module covers all investment, transactional, and client risks and combines with an alert system in case of deviations in mandates. Finally, our CRM for managing client data includes Know Your Customer (KYC) functions, which are crucial for IAMs today.

How do you differentiate yourselves from your competitors and what is your unique proposition for wealth managers?

BF: We have three differentiating assets with Efficience. First, our software is hosted on our clients’ servers or their cloud, rather than a Software-as-a-Service model, ensuring greater data security. Our second asset is that we source all valuations from banks and not traditional data vendors, which facilitates reconciliation for our clients and ensures more reliable management reports. Finally, we apply a soft pricing model that makes our solution accessible to all IAMs looking for a PMS. Updates and new developments based on client requests are integrated into the software at no additional cost.

KD: LYNQS was developed in close collaboration with Leonteq’s clients to create a pertinent tool for IAMs and private banks. The result are two distinct functionalities that are important pillars of our offering. First, our clients want to operate with digital tools that respect their corporate identity. Thanks to our white-labelling functionality, LYNQS adapts’ the entire graphic charter of the wealth managers as well as all activity reports that may be generated via such tool. The other key differentiator is open architecture. Our lifecycle management services are not only available for products issued or sold by Leonteq but also for third-party products. This allows for a consolidated view of the structured products portfolio and harmonized service quality regardless of the issuer.

You have started a collaboration to connect your two tools and create new services. Can you tell us more?

KD: Our platform was designed with multi-channel technology, meaning that our digital services are not only available through the website but also in mobile version and via an API. It is this last channel that has enabled us to establish connectivity between LYNQS and Efficience to enrich the available data in portfolios and processes. Our ambition is to enhance the client experience on structured products in a portfolio context, making these investment solutions easier to follow for the wealth manager and more popular among investors.

BF: Data related to structured products is often incomplete and not harmonized among custodians who provide us with the information. Our approach has been to get closer to the designers of structured products to obtain more complete and reliable information, hence the idea of this collaboration with the LYNQS platform. We are now in a phase of discussions with our clients to identify their exact needs for these types of investment products in the context of Efficience, with which they are particularly familiar.

What is the current demand for digital solutions from independent asset managers, and what trends do you see emerging?

BF: The demand for new and automated solutions from our Efficience clients currently focuses mainly on enhancing KYC services. Following recent regulatory changes such as FinIA, we are focusing our efforts on integrating innovative solutions to streamline compliance tasks. Another important area of innovation for our clients is the use of artificial intelligence models in the PMS. We are currently exploring the integration of these new tools in both commercial relationships and portfolio management to facilitate decision-making and reduce the administrative burden on IAMs.

KD: Indeed, we also see a strong demand for digital solutions from IAMs driven by several transformational factors. In particular, the generation of digital natives is increasingly present in our clients’ firms and demands comprehensive, fast, and intuitive tools. With the development of APIs and a greater inclination of financial actors towards open banking, there is a very strong demand for integrated solutions involving multiple technological platforms to create true ecosystems. The collaboration between Leonteq and the Key is a very good example of this.