Thanks to LexiFi Apropos, Garantum has reduced operational risks and improved client services

Garantum is the largest distributor of retail structured products in the Nordics market. The company offers a broad spectrum of structured product payoffs to meet specific investors’ needs. The challenge was to book all different products in one system and monitor their lifecycle events in an efficient manner.

"We wanted a flexible system that allows us to define our own specific metrics, book all payoffs and create synergies with other systems in the organization."
Panagiotis Pavlidis, Structurer at Garantum

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Flexibility, synergies with other systems and reduced operational risk

In autumn 2017, Garantum found the perfect match. LexiFi Apropos has allowed the Nordic distributor to accurately process all product types. LexiFi Apropos was easily integrated within Garantum’s environment and provided the needed flexibility to define many specific metrics. An example of these metrics is the Long-Term Price, defined as follows:

What would be the redemption price if today was the redemption date?

This metric gives investors a feel for the payoff, as well as information about potential unwind of the position when compared to the market value of the product.

Less time on product booking, more time to innovate and enhance client services

Since the adoption of LexiFi Apropos, Garantum teams have more time to focus on added value tasks:

  • Less time in registering products in a system and more time in actual product development
  • More time to work with topics that enhance client service quality
  • Easier product monitoring process and the ability to inform investors about lifecycle events, such as early redemptions, barrier events, corporate actions and various types of coupon events

Proactive client service

With the old set-up, non-standard products were registered in a distinct system making it hard to efficiently keep track of all product events. Using LexiFi Apropos, all products are fully described in one system. Garantum clients can easily follow the progress of their investments for all products in the same format.

Garantum goes the extra mile and provides investors with custom indicators to proactively monitor their largest equity exposures and portfolios. LexiFi Apropos risk management tools has allowed to easily construct these indicators. An example is a delta measure to illustrate how each underlying price movement impacts the value of a given product. Thanks to this metric, investors can identify their portfolio sensitivities.

Favorite LexiFi Apropos features

Garantum teams especially enjoyed using LexiFi Apropos innovative functionalities such as the Underlying Optimizer, Graphical Simulation and lifecycle event management tools. LexiFi Graphical Simulation tool notably allows them to double check if products were booked correctly, thereby reducing the risk of errors.

"LexiFi delivers tools and services that enable us to enhance the experience and the transparency of structured products. The software has increased both our productivity and the quality of our work."
Panagiotis Pavlidis, Structurer at Garantum

Name: Garantum
Industry: Brokerage, Wealth Management and Private Banking services

Garantum is the largest distributor of retail structured products in the Nordics and now offers a complete pallet of financial products and services through a modern investment platform. With offices in Stockholm, Oslo and Helsinki Garantum helps independent financial advisors to offer a truly tailored portfolio to the needs of their Private Banking and institutional clients.