Investors use structured products to gain precise exposure to perceived investment opportunities in a given market environment. The timely delivery of investment solutions adapted to each clientâs needs requires strong advisory and processing capabilities: more specifically, recent market turbulence has highlighted the importance of providing quality advice throughout the life of each product, to closely monitor valuations and performance, and to streamline the management of inherently diverse product offerings. In uncertain times, private banks may be hesitant to undertake the large-scale in-house IT projects required to address the difficult technical and organizational challenges posed by a structured products business.
Recognizing this dilemma, LexiFi has developed an integrated and cost-effective system designed to help private banks to:
- deliver timely and relevant investment solutions thanks to independent analytical capabilities;
- enhance customer service by providing immediate access to relevant information throughout the life of each product; and
- streamline operations and cut costs by automating time-consuming and error-prone pre- and post-trade business processes.
Helping to Deliver Timely and Relevant Investment Solutions
The LexiFi application enables private banks to design distinctive investment solutions with analytical toolsâincluding pricing tools, instantaneous sensitivity analyses, Greeks, historical and forward-looking simulations, and VaR analysesâthat provide insight into the economics of proposed products.
Product specialists quantify the value, risks, and rewards of each product with proven implementations of industry-standard pricing models, delivered with related calibration algorithms.
Access to industry-standard valuation models improves price transparency and rigorous product analyses help to generalise fact-based sales practices, which reduce the risks of misrepresentation and negative publicity.
Enhanced Customer Service
The LexiFi solution is designed to serve as an authoritative and up-to-date source of structured product data.
Interactive tools provide instant access, throughout the life of each product, to client positions, detailed product terms and conditions, product valuations, performance and risk metrics, and life cycle event information.
The ability for a structured products team to respond immediately to inquiries from relationship managers and clients is a key service differentiator for private banks.
Streamlined Operations, Reduced IT Costs
The LexiFi solution automates the processing of orders and trades, the creation of customer documents such as term sheets and product reports, the ongoing monitoring of continuous barriers, and the life cycle management of structured investment products.
In addition, extension and integration tools enable users to tailor their solution and to synchronise processes across the entire structured products business.
Affordable license fees, broad product and functional coverage, and automated installation and upgrade procedures contribute to reducing IT costs and risks. An intuitive user interface and direct access to experienced and qualified personnel at LexiFi reduce training efforts and costs.
LexiFiâs new functionality is also available in the form of software components for software vendors and service providers who wish to enhance existing solutions targeting the private banking market with valuation, risk management, and processing capabilities for structured products. LexiFi offers training, consulting, and software development services to ensure the successful completion of integration projects, as well as ongoing maintenance and support.