BNP Paribas Securities Services deploys APIs to fund administration business

BNP Paribas Securities Services has released a set of application programming interfaces (APIs) within its fund administration business, in a major move to digitise its business.

By Joe Parsons

BNP Paribas Securities Services has deployed 17 fund accounting APIs to automatically update clients’ systems with information specific to their business, such as net asset value (NAV) calculations and distribution, and settlement instructions and status.

The bank’s asset manager clients can also post information, such as NAV validation, directly to BNP Paribas Securities Services’ systems.

The deployment of APIs will allow BNP Paribas’ asset manager clients to receive information in real time, helping them streamline their data management and enhance their internal control mechanisms.

“This is an important milestone in our digital transformation. System-to-system communication and real-time status updates via APIs enable us to enhance our operational efficiency and client experience at the same time,” said Arnaud Claudon, head of the asset manager client line, BNP Paribas Securities Services.

“With this new set of APIs, our clients will receive information in real time rather than wait for files to come through. This will make for better risk controls, better decision making and will also help improve straight-through processing rates.”

BNP Paribas Securities Services is working with Swift to standardise all its existing and future APIs via the global ISO 20022 standard, in order to promote greater interoperability.

A recent study from Swift and Boston Consulting Group (BCG) highlighted how the securities services industry is now closer than ever to making APIs mainstream in post-trade services. It also found commercial interest in the technology has grown rapidly among providers.

However, adoption of APIs in securities services has been slower than in other areas of financial services, in part because of a lack of a regulatory catalyst, as well as little consistency in the readiness to adopt APIs.

“APIs have the potential to significantly transform current market practices and how our industry processes data and provides services. However, unless API processes undergo standardisation, the sharing and use of data will continue to be inconsistent and open to misinterpretation. This is why we are working with Swift to standardise our API catalogue to ISO 20022,” added Paul O’Keeffe, head of client digital experience, at BNP Paribas Securities Services.

APIs have been tipped as a potential enabler for custodians to launch self-service tools, whereby an open-ended architecture can gather data sets across a number of environments into one, and can interact with other systems.

Other custodians including BNY Mellon, Citi and Northern Trust have also invested heavily in API technology to enhance their client portals and self-service data capabilities.