modelity structures overview
TRANSCRIPT
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