Interview: Fact and LexiFi reflect on these past years

In September 2018, FACT selected LexiFi for joint work and collaboration in the field of complex financial instrument life cycle management and valuation. FACT has integrated LexiFi’s contract description algebra and the quantitative libraries from LexiFi’s Instrument Box into its asset management and valuation system.

Today, the two financial technology providers have built a strong business relationship based on sharing the best technical and market practices. In this written interview, FACT and LexiFi teams reflect on these past years and tell us more about the rationale of this strategic partnership.

alt text

What customer or market situation led Fact to look for a partner such as LexiFi?

Perhaps what brought the need for this partnership was the increasing diversity and complexity of financial products traded by our clients, as well as the regulatory innovations in the financial market. To keep up with these innovations, and quickly handle consequent operational and administrative requirements, we decided to look for a partner such as LexiFi.

What challenges at FACT specifically necessitated the use of LexiFi Instrument Box technology? What were you looking for in LexiFi Instrument Box?

We needed a technology allowing for the independent valuation of derivatives and structured products which satisfies two main points:

  1. Seamless integration of valuation expertise, procedures, and technology into our own products
  2. A wide range of valuation models to meet as many needs as possible

What has set LexiFi technology apart from other options?

One of the biggest differentiators of LexiFi is their modeling of financial products through a clearly defined grammar with a very good extensibility. The simplicity of the interface is also a notable competitive advantage. Besides, we were impressed by Instrument Box convincing computational speed.

Which criteria and competencies of the company were decisive for this partnership?

Fact: We could sense, from an early stage of the collaboration, both LexiFi’s innovative ability and ease of integration. LexiFi had provided a clear roadmap for the technical implementation and demonstrated Instrument Box superior computational capabilities. Fact platform’s technical integration capabilities helped achieve a seamless integration with Instrument Box.

LexiFi’s experts were willing to share knowledge and best practices and were always available to help move the project forward.

LexiFi’s references and clients in the derivatives and structured products industry were also naturally a selling point. Above all, we were perfectly aligned in terms of corporate culture, chemistry, and partnership prospects.

LexiFi: From the outset, Fact demonstrated a willingness to take ownership of Instrument Box and invest time and resources integrating it within their technology. Fact team members had clearly and exhaustively specified their expectations. Both Fact teams and ours got along well and appreciated the efficiency of interactions.

Fact’s leadership has a clear development vision that is catered through a strong intellectual capital and a focus on digital innovation. As software providers, we are pleased to equip such a determined and visionary company.

How do the different competencies mesh?

Fact: LexiFi has provided the quant know-how, while Fact had shared business knowledge and regulatory know-how.

LexiFi: Fact and LexiFi’s collaboration resulted in increased technical expertise and a natural tendency to share resources in both technology and finance.

Fact experts provided insights about client requests and regulatory requirements in Germany. Most importantly, Fact has ably addressed the German market requirements with LexiFi’s technology, while sharing the best practices. Thus, LexiFi’s team has been learning to adapt to the German market characteristics and subtleties.

How did the implementation go?

Fact: The Implementation went smoothly. In fact, the consistent textual interfaces provided by LexiFi are a simple, efficient, and transparent form of data communication. LexiFi’s clearly defined grammar made it possible for us to implement a simple connection to our software, and thus exceed our time to market expectations. Extensions are therefore carried out quickly via a simple data mapping.

LexiFi’s team was always available at short notice to provide any assistance we needed.

Instrument Box seamless integration with our software makes it very easy for us to also deliver customizations and enhancements with our normal software update cycles.

There is a shared and jointly managed test base, which ensures for both parties that changes to Instrument Box do not cause unwanted side effects and regressions.

LexiFi: The implementation was smooth as the communication with Fact was remarkably efficient and precise. Fact experts demonstrated remarkable analytical skills, and a willingness to identify solutions together with LexiFi’s team as opposed to pointing out potential issues. This positive and collaborative mindset has mobilized a collective effort towards a successful implementation.

How has LexiFi Instrument Box performed since implementation? How has it helped meet the needs of Fact customers?

It is going very well. The position of Fact products with customers was consolidated and expanded through LexiFi Instrument Box. Common customer approaches are now taken and the gap in the functionalities of our software platform was closed.

What has particularly been positive throughout the project? Where were expectations exceeded in the collaboration?

What is particularly noteworthy is the partnership cooperation spirit. We were happily always surprised by LexiFi’s readiness to support Fact with specialist know-how, both internally and with our customers, even outside of the pure product scope.

Is there anything else you would like to add?

Fact: We are still very happy about our decision to partner with LexiFi, and hope for a long and successful cooperation. Our conclusion: anytime again!

LexiFi: Fact’s team expertise coupled with their way of doing business, place them as a privileged partner for us when it comes to sharing expertise as well as latest developments and technologies.

Name: Fact Informationssysteme & Consulting AG
Industry: Financial technology
Website: https://www.fact.de/en/

Our vision is to be the first point of contact for the financial sector in times of digital change with our future-proof software solutions.

As digital uncomplicators we simplify complex processes through digitalization, helping our customers become more successful. This mission drives us as a company and is reflected in our product innovations and in the further development of our products.

We identify market needs and specific customer requirements and then develop a solution that, for example, represents a new digitization step, increases efficiency on the customer side, and generates long-term growth.

For this purpose, we are constantly looking for partners who offer specific services that suit us and with whom we can cooperate to complement our offer and enhance our client services.