TheLogicValue is a leading company in the field of banking and digital innovation worldwide that offers banking digitization services. It was the only European Fintech recognized by Gartner, the world’s leading research and advisory company in its October 2020 report “Cool Vendors in Banking.” Lorenzo García Tamarít, CEO of TLV talks about the project and how they constantly seek to develop new solutions for the financial industry.
Susana Martín (SM), How was TLV born?
(LG): “TheLogicValue was founded five years ago by three professionals: two bankers, with 20 years of experience, and an engineer, with the aim of digitizing the very powerful stock valuation model that we developed based on a very particular algorithm. This algorithm assesses by fundamental analysis more than 3,500 companies from 20 countries and in five languages: English, Spanish, German, Portuguese or Chinese.
(SM) What services does TLV offer?
(LG): Right now, our B2B solutions are grouped into three interrelated branches. The first branch is a portfolio manager solution on stocks and funds based on financial risk and valuation models.
The second branch is used to control climate risks for listed and unlisted companies. Last but not least, we have the virtual assistant branch which is able to leverage the knowledge of the two other branches, so that it becomes a truly intelligent assistant.
(SM) Who is the TLV customer?
(LG): Our main clients are banks and insurance companies, although we also work with technology companies, allowing them the use of certain components of our solutions for their activity. In this last case, it is like when an individual buys a car from one brand and the engine is from another brand, which is a competitor.
(SM) What is the value proposition of TLV?
(LG): Our differential value is the combination of deep financial and technological knowledge from the team. This allows us, with the accumulated experience, to find solutions for the changing needs of financial institutions regarding digitization. We are able to understand the needs and problems of the business in the language of the client. I like to say that our finance team has programming knowledge and our programmers have financial knowledge.
(SM) How do you get “Julia”, your virtual assistant, to satisfy those customers who are increasingly looking for a more human experience when interacting?
(LG): They are looking for a human experience and above all, reliable and instant content. We have more than 500 financial algorithms, which are connected to a database with information from more than 100,000 financial assets. If we had to expose this in a traditional way, with a website or an APP, the navigation screens would tend to infinity. With Julia, being trained and connected, it’s like asking a financial adviser.
(SM) How will the implementation of this AI impact the traditional business model in a company?
(LG): I think that in the first phase it will support commercial teams, especially those far from the office and where they cannot be a specialist on all issues. Subsequently, assistants specialized in funds, pensions, mortgages, personal loans, etc. will arrive for clients. As bank offices have their own specialized staff, there will be assistants according to departments. Then there will be an impact on efficiency and thus on the scope or margin of the business.
(SM) Why should an IT system manager invest in TLV AI products and set aside those he already operates with?
(LG): We have been teaching Julia about finance, taxation and financial products for three years. Our accelerators on different financial themes can be used independently and covered by certain services. In addition to the possibilities of customization, factors such as efficiency, scope, turnover or innovation, among others, come into play.
(SM) What challenges does TLV face in the sector?
(LG): The financial sector is under great pressure on margins, interest rates and COVID. Digitization, on the other hand, is a long-term process that must be assimilated by customers. Our products and solutions point exactly in this direction; they are useful and make sense to both entities and customers. In short, we simultaneously help financial institutions, who must be able to continue and grow in this new reality imposed on us by the COVID-19 pandemic and new digital players and in essence, make life easier for the end user.
