modelity structures overview

Agenda

About the company

Market Challenges

Modelity/Structures Solutions

Case Studies

About Modelity

Financial technology company

Founded in 2000

85 Employees

Part of the Fishman Group consisting of thousands of employees

Global Offices:

Leading Clients

Complex products, insufficient transparency

Salespersons not understanding products refrain from selling

Investors not understanding products refrain from investing

Complexity and non-standardization results in lack of automation

Lack of automation results in

long time to market for new ideas

poor client support

All of the above results in low sales

Market Challenge

Comprehensive set of solutions for the entire product lifecycle

Flexible financial language to allow modeling of all structured products

Enhanced transparency using dynamic and interactive product

visualizations

Maximize sales

Educate clients

Automate tedious manual work

Upgrade client support

Speed up time to market for new products and new product innovations

Structured Product business management

Modelity/Structures Solution

Modelity/Structures Solution

Animated Sales Presentations

Educational videos

Payoff logic illustrations

Interactive future scenarios (and possible

product outcomes)

Sales persons training tool (quiz)

Narration (voice)

Interactive flash presentation including a product performance simulator. Tailored to boost sales in the primary market.

Secondary Market Volume Generation

Includes live feed of market data

Dynamic illustrations - adjusting to the market situations

Personalized - investors may input individual

purchase prices for the products

Decision-making tools to

stimulate trading activity

Dynamic flash presentation to explain the product’s historical performance and possible future scenarios.

Product Repository

Storage and management of all structured product types

Holds static and dynamically calculated data

Advanced screening capabilities

Management Reporting

Centralized repository holding all the organization’s structured products along with common and advanced management capabilities

Workflow Engine

Process steps, dependencies and privileges

Role-based users (sales, trading, compliance,

operations, etc.)

Support of various principles such as 4-eye

Connectivity to existing organizational systems

(pricing, clearing, etc.)

Leverages other Modelity/Structures modules

(Repository, Events, Reporting, etc.)

Definition and management of pre and post sales processes, to improve control, save resources and speed up processes

Performance Reporting

Friendly product and underlyers performance illustrations

Coupon payments and accruals

Observations (Asian in/out, Cliquet…)

Barriers (Knock-in/out, range, tunnel...)

Dynamic weighting (Rainbow, momentum…)

Reporting and visualization mechanism that produces reports showing the actual performance of live products and their underlying instruments

Termsheet & Pre-launch Documentation

Automatically updated and generated

Eliminates manual errors

Utilized for various document types such as:

Private client termsheet

KIID

Brochure

SEC Free Writing Prospectus

Indicative / final terms

Streamlines tedious and error-prone production of product documentation

Analytics

Back testing

Stress back testing

Monte-Carlo based future scenarios

Actual historical performance

Test and compare existing products and new product ideas using a variety of scenario analysis tools

Website Generation

Amongst others may include:

Products in subscription

Live products

Matured products

Product literature

Performance data and analysis

Automatic creation of website pages and content for the structured products business intended for the organization’s clients/investors

Event Monitoring

Typical monitored events may include:

Approaching maturity

Approaching observation / payment date

Barrier breach

Lock-in

Knock-in

Knock-out

Constant monitoring and timely notifications regarding various events during product lifetime

Case Study #1

Client: One of the top 10 global financial institutions

Issue at stake: Performance reporting for hundreds of wealth products

Problems:

Prepared manually

Delivered only on a semi-annual basis

Very limited information per product

Modelity/Structures Solution:

Prepared automatically

Delivered on a monthly basis

Detailed and informative reporting per product

Published on the website and increasing traffic

Case Study #2

Client: One of the top 50 global financial institutions

Issue at stake: Educational sales presentations

Problems:

Not available

Modelity/Structures Solution:

Prepared automatically for each new product

Positive feedback from salespersons of the branch network

Higher interest in the bank’s products by its potential investors

Increased sales (disclaimer: increase may also have been caused by other factors)

Case Study #3

Client: One of the top 100 global financial institutions

Issue at stake: Operations – valuation of payments

Problems:

Payment values and timings were conducted manually

Calculation conducted manually and in Excel resulting in many errors

Suppression of innovative ideas, not supported by the Excel calculations

Modelity/Structures Solution:

Payment values calculated automatically

High precision results

Innovative ideas were launched without delay