Tradier uses the Apigee API management platform from Google to abstract the legacy complexities of capital markets so that developers can build FinTech applications in an agile, nimble, and quick fashion at minimal cost. The company embodies the evolution of what cloud technology can enable in the form of an API-first business delivered as a service.

The rise of API-powered FinTech

Historically, companies that wanted to build systems, applications, or services to interact with the stock market would have to build an entire brokerage operation from scratch. This would include data infrastructure, compliance infrastructure, and storage capabilities. It could take years and massive capital expense to accomplish everything that was required to be ready to serve customers.

Tradier provides this infrastructure as an API-based service so that the same companies can launch investor applications in as little as a few weeks. This democratized access means that FinTech innovation can come from anywhere, giving the same opportunities to create new products to everyone, from enterprise customers to startups.

“Financial markets are becoming fundamentally decentralized and unbundled,” says Dan Raju, co-founder, CEO, and chairman at Tradier. “The services that large legacy banks and brokerage firms used to offer are being supplanted by Tradier’s microservices and APIs, which power innovation.”

More than 200 companies use Tradier to develop and launch new products, or to add new features and functions that they traditionally would not have offered in existing products. With a large and diverse user base, Tradier faced the challenge of managing its partners in way that helps ensure it can grant credentials, track, monitor, and report in an efficient and equitable manner.

At the same time, the company recognized the inherent value of its partners for their power to leverage Tradier APIs to innovate. Tradier’s fundamental market disruption is the partner ecosystem, where the company is engaged along with its partners to deliver value to the entire ecosystem in the form of new products and services.

Embracing an API-powered ecosystem

Tradier has moved beyond providing great APIs toward engaging its ecosystem. If a customer wants a specific dataset, the company doesn’t automatically build a new product. Instead, Tradier looks to the ecosystem to build the product. With this approach, Tradier has taken its capabilities and multiplied them by hundreds.

“The fundamental difference between thinking about an API ecosystem versus an API product is the difference between being a participant who’s enabling innovation and not just a company delivering a set of technical capabilities,” Raju says.

Tradier takes an outside-in approach toward engaging its API ecosystem. Constantly listening to participants and helping to enable and empower them to create value is fundamental to the company’s business model. Rather than simply focusing on building new capabilities on its own, Tradier listens to what functionalities customers need and facilitates development. In many cases, the ecosystem generates the requested product organically rather than Tradier needing to do it.

“I love APIs because they allow you to empower others to create value. The concept of empowering others to create value along with you is what is the most satisfying, and the most fascinating, thing about APIs,” says Raju.

Delivering value at scale

Tradier handles between 500 million to 1 billion API calls and a billion dollars in transactions a month, and all of them run through the Apigee API management platform. Apigee’s last mile forms the single layer that manages Tradier’s infrastructure, including security, analytics, developer interactions, and execution. The company also uses Apigee to comply with an array of regulatory reporting, mandated by Tradier’s status as a FINRA (Financial Industry Regulatory Authority)-regulated entity.

“Apigee is integral to the Tradier offering. They have been great partners and have always collaborated and enabled us to innovate at a pace that helped Tradier attract developers and innovative companies. We see tremendous potential in the synergy of Apigee and Google as it brings to the market a vast extended capability set based on the Google Cloud Platform.”

Tradier is an API-centric ecosystem that delivers value to an entire set of players where the nucleus is the Apigee API management suite, which helps deliver, innovate, publish, manage, monitor, and secure the ecosystem on a day-to-day basis. Simplicity combined with product evangelism is the key to success in the API space, Raju says.

Tradier’s capabilities to innovate, iterate, and travel the journey with its customers, partners, and developers has yielded many rewards. The company’s long history of working with Apigee has enabled it to assemble a set of people and resources for creating engagement, as well as to create a winning set of APIs for delivering FinTech capabilities.

Considering the transformative future

Looking toward a future in which the financial services industry will experience ongoing disruption, Raju predicts that Tradier will continue to leverage APIs to lead the way.

“I think traditional banks are under attack. They are being replaced by a set of nimble, agile players that are offering a lot of new functionality to customers. This is forcing banks to think about how they can digitize their products through APIs so that they can provide the same functionalities as newer players.”

With companies like Tradier and others offering functionality that used to be in-house and exposing it outside, traditional brokerage firms are also being forced to rethink their model. Raju believes that this line of thinking also extends to the Blockchain.

“Exposing Blockchain-like capabilities through APIs is going to be a disruptive influence, and it will be critical for companies to think about how APIs, and more importantly Blockchain, can create value for us.”

The name Kitabisa means “we can” in Bahasa Indonesia, the official language of Indonesia, and captures our aspirational ethos as Indonesia’s most popular fundraising platform. Since 2013, Kitabisa has been collecting donations in times of crisis and natural disasters to help millions in need. Pursuing our mission of “channeling kindness at scale,” we deploy AI algorithms to foster Southeast Asia’s philanthropic spirit with simplicity and transparency.

Unlike e-commerce platforms that can predict spikes in demand, such as during Black Friday, Kitabisa’s mission of raising funds when disasters like earthquakes strike is by definition unpredictable. This is why the ability to scale up and down seamlessly is critical to our social enterprise.

In 2020, Indonesia’s COVID-19 outbreak coincided with Ramadan. Even in normal times, this is a peak period, as the holy month inspires charitable activity. But during the pandemic, the crush of donations pushed our system beyond the breaking point. Our platform went down for a few minutes just as Indonesia’s giving spirit was at its height, creating frustrations for users.

A new cloud beginning

That’s when we realized we needed to embark on a new cloud journey, moving from our monolithic system to one based on microservices. This would enable us to scale up for surges in demand, but also scale down when a wave of giving subsides. We also needed a more flexible database that would allow us to ingest and process the vast amounts of data that flood into our system in times of crisis.

These requirements led us to re-architect our entire platform on Google Cloud. Guided by a proactive Google Cloud team, we migrated to Google Kubernetes Engine (GKE) for our overall containerized computing infrastructure, and from Amazon RDS to Cloud SQL for MySQL and PostgreSQL, for our managed database services.

The result surpassed our expectations. During the following year’s Ramadan season, we gained a 50% boost in computing resources to easily handle escalating crowdfunding demands on our system. This was thanks to both the seamless scaling of GKE and recommendations from the Google Cloud Partnership team on deploying and optimizing Cloud SQL instances with ProxySQL to optimize our managed database instances.

A progressive journey to kindness at scale

While Kitabisa’s mission has never wavered, our journey to optimized performance took us through several stages before we ultimately landed on our current architecture on Google Cloud.

Origins on a monolithic provider
Kitabisa was initially hosted on DigitalOcean, which only allowed us to run monolithic applications based on virtual machines (VMs) and a stateful managed database. This meant manually adding one VM at a time, which led to challenges in scaling up VMs and core memory when a disaster triggered a spike in donations.

Conversely, when a fundraising cycle was complete, we could not scale down automatically from the high specs of manually provisioned VMs, which was a strain on manpower and budgetary resources.

Transition to containers
To improve scalability, Kitabisa migrated from DigitalOcean to Amazon Web Services (AWS), where we hoped deploying load balancers would provide sufficient automated scaling to meet our network needs. However, we still found manual configurations to be too costly and labor-intensive.

We then attempted to improve automation by switching to a microservices-based architecture. But on Amazon Elastic Container Service (Amazon ECS) we hit a new pain point: when launching applications, we needed to ensure that they were compatible with CloudFormation in deployment, which reduced the flexibility of our solution building due to vendor locking.

We decided it was “never too late” to migrate to Kubernetes, which is a more agile containerized solution. Given that we were already using AWS, it seemed natural to move our microservices to Amazon Elastics Kubernetes Service (Amazon EKS). But we soon found that provisioning Kubernetes clusters with EKS was still a manual process that required a lot of configuration work for every deployment.

Unlocking automated scalability
At the height of the COVID-19 crisis, faced with mounting demands on our system, we decided it was time to give Google Kubernetes Engine (GKE) a try. Since Kubernetes is a Google-designed solution, it seemed likeliest that GKE would provide the most flexible microservices deployment, alongside better access to new features.

Through a direct comparison with AWS, we discovered that everything from provisioning Kubernetes clusters to deploying new applications became fully automated, with the latest upgrades and minimal manual setups. By switching to GKE, we can now absorb any unexpected surge in donations, and add new services without expanding the size of our engineering team. The transformative value of GKE became apparent when severe flooding hit Sumatra in November 2021, affecting 25,000 people. Our system easily handled the 30% spike in donations.

Moving to Cloud SQL and ProxySQL

Kitabisa was also held back by its monolithic database system, which was prone to crashing under heavy demand. We started to solve the problem by moving from a stateful DigitalOcean database to a stateless Redis one, which freed us from relying on a single server, giving us better agility and scale.

But the strategy left a major pain point because it still required us to self-manage databases. In addition, we were experiencing high database egress costs due to the need to execute data transfers from a non-Google Cloud database into BigQuery.

In December 2021, we migrated our Amazon RDS to Cloud SQL for MySQL, and immediately saved 10% in egress costs per month. But one of the greatest benefits came when the Google Cloud team recommended using the open source proxy for MySQL to improve the scalability and stability of our data pipelines.

Cloud SQL’s compatibility allowed us to use connection pooling tools such as ProxySQL to better load balance our application. Historically, creating a direct connection to a monolithic database was a single point of failure that could end up in a crash. With Cloud SQL plus ProxySQL, we create layers in front of our database instances. It serves as a load balancer that allows us to connect simultaneously to multiple database instances, by creating a primary and a read replica instance. Now, whenever we have a read query, we redirect the query to our read replica instance instead of the primary instance.

This configuration has transformed the stability of our database environment because we can have multiple database instances running at the same time, with the load distributed across all instances. Since switching to Cloud SQL as our managed database, and using ProxySQL, we have experienced zero downtime on our fundraising platform even when a major crisis hits.

We are also saving costs. Rather than having a separate database for each different Kubernetes cluster, we’ve merged multiple database instances into one instance. We now group databases according to business units instead of per service, yielding database cost reductions of 30%.

Streamlining with Terraform deployment

There’s another key way in which Google Cloud managed services have allowed us to optimize our environment: using Terraform as an infrastructure-as-a-code tool to create new applications and upgrades to our platform.

We also managed to automate the deployment of Terraform code into Google Cloud with the help of Cloud Build, and no human intervention. That means our development team can focus on creative tasks, while Cloud Build deploys a continuous stream of new features to Kitabisa.

The combination of seamless scalability, resilient data pipelines, and creative freedom is enabling us to drive the future of our platform, expanding our mission to inspire people to create a kinder world in other Asian regions.

We believe that having Google Cloud as our infrastructure backbone will be a critical part of our future development, which will include adding exciting new insurtech features. Now firmly established on Google Cloud, we can go further in shaping the future of fundraising to overcome turbulent times.

Google Cloud Results

• Reduced API management costs 34%
• Develops new features in days versus months
• Fixes issues quickly by writing code
• Manages 15B API calls per month without outages

Austin, Texas-based Bazaarvoice switched to Apigee for its API platform because of its competitive pricing and feature set. But another benefit soon became apparent to Bazaarvoice engineers: the ability to write code on the Apigee platform and “own our destiny,” says Kurtis White, Senior Development Manager in Research and Development for Bazaarvoice.

Bazaarvoice specializes in consumer-generated content marketing solutions that connect brands, retailers, and consumers. APIs do the heavy lifting in making those connections. For example, the Conversations API, the heart of the Bazaarvoice platform, lets the company’s retail clients aggregate and leverage users’ product reviews and ratings. With the Conversations API, API keys are passed along in each query string and enable Bazaarvoice customers to access the relevant customer data.

APIs are essential to the Bazaarvoice platform. During its early days the company didn’t use APIs, relying instead on direct communication links to connect its customers to what consumers were saying about them. “That approach just didn’t scale,” says White. “Without reliable APIs, it would be almost impossible for us to be in business today.”

Eight years ago, Bazaarvoice switched to APIs. From about 2013 to 2017, the company relied upon the same API management SaaS solutions provider. But the company was growing. The call volume that its APIs generated was expanding at a rapid pace, too—especially during the busy year-end shopping season. For example, in early October 2016, Bazaarvoice APIs generated nearly 9 billion calls, compared to about 12 billion calls in early December 2016.

Unfortunately, along with the pace of API calls, the costs associated with Bazaarvoice’s existing API solutions provider were also escalating—increasing 74% from early 2016 to early 2017. To keep rising expenses from stifling its own growth, and to continue offering its reliable, high-performing SaaS solution, the company’s IT team decided it was to time to find a different API solutions provider.

In April 2017, Bazaarvoice migrated to the Apigee API platform because of its feature set and, in particular, its competitive pricing. By switching to Apigee, Bazaarvoice reduced its API spend by 34%, White says.

A ticking clock

Migrating from its previous API provider to Apigee involved importing 66,000 API keys—an arduous task. Apigee engineers and business leaders worked directly with their Bazaarvoice counterparts to help ensure a successful transition. “Everyone at Apigee was very responsive to our needs,” White says. “If a problem came up, the Apigee team owned it and worked through it to give us a great experience.”

During the migration, there was a clock ticking in the background. Bazaarvoice wanted to shift 100% of its API calls to Apigee before the contract with its existing API provider came up for renewal. “I wasn’t sure we could make the deadline,” says White. “But we did, and I give a big credit to the Apigee technical team. They provided 24-hour support to our team. And once we went live, our platform was handling 15 billion API calls a month with no outages.”

Following the migration, Apigee support continues to “knock it out of the park,” he added. “Apigee is a great partner to have.”

Controlling destiny

The Bazaarvoice IT team didn’t specifically choose Apigee because of the ability to write code on the platform—but they quickly came to appreciate the feature.

“Our previous API provider was like a black box to us,” says White. “They had written some custom code for us that we depended upon. But we didn’t own that code. And if we needed changes, we had to pay them to do it for us.”

“Apigee allows us to write our own code that runs on the platform and looks at all of the API calls,” White continues. “We can put the code into a virtual control system. We can update it whenever we want to add a feature. Because of how important APIs are to our business, the ability to write code on Apigee lets us control our own destiny. It’s the Apigee number one benefit, in my opinion.” This also accelerates the time it takes Bazaarvoice to bring new features to market.

“Apigee gives us the flexibility to do things we wouldn’t have even tried before,” says White. “We can test new things easily, without getting locked into a service agreement with an external party. Before, it might have taken months to develop new product functionalities. Now it takes days.”

In addition, writing code on the Apigee platform enables the IT team to quickly address any problems that may arise. “If someone notices a problem, we can write the code to fix it right away,” White says.

“Because Apigee lets us iterate and fix problems quickly, our innovation has gone to the next level,” White added. “Before, if you had an idea, you’d wonder if you really wanted to invest $30,000 and three months in it. Probably not. Now, with Apigee, the investment is maybe one day and zero dollars.”

Experimentation pays off for Bazaarvoice and its customers. For example, during the 2017 holiday season, Bazaarvoice was able to give all its customers the capacity to handle twice the number of API calls.

“With our previous API solutions provider, it would have been such a long process to make that happen, it wouldn’t have been worth it,” says White. “But it was really easy to write the code in Apigee. Plus, we made our customers happy and kept them running smoothly during the peak holiday season—with little effort on our part.”

Personalization and monetization

Apigee has played a key role in enabling Bazaarvoice to develop new products, too. In March 2018, Bazaarvoice released a new personalization data product for its customers, built on top of an Apigee-powered API. The new product enables Bazaarvoice retail customers to recommend relevant products to their online shoppers. The products are personalized to the shoppers’ interests, based on their past behavior and what they’re shopping for.

Apigee is also serving as a strategic business advisor, helping Bazaarvoice determine the best way to price its offerings as its API call volumes continue to increase.

“We’re working with Apigee to build an industry-leading model for monetizing our APIs,” says White. “Apigee is the ideal advisor in this regard. We’re handling such large volume, the volume is continuing to grow, and Apigee enables us to power it.”