Reconciliation is often overlooked and undervalued by firms. Done right, reconciliation can help you avoid regulatory risks, make informed decisions, and ultimately reduce costs.
Unfortunately, reconciliation at many firms remains a laborious, time-consuming and risk-prone process relying heavily on spreadsheets and manual labor. This approach is not only inefficient but also fundamentally unsustainable in the long run. Planning well ahead, and considering automating your data reconciliation process early on, could be the competitive edge your firm has been seeking.
Here are 5 competitive advantages to consider when deciding whether automated reconciliation is the right choice for you:
1. Informed investment decisions
Asset managers are increasingly demanding further reporting capability to collect and report on business metrics, such as user adoption rates, field usage, and approval turnaround times. A facility is, therefore, required to forecast growth in these areas as well as many others. Furthermore, actionable information, delivered via user-friendly, intelligent dashboards, is the cornerstone of effective front office decision-making.
2. Increased productivity
With an automated reconciliation solution, tasks that once took days or even weeks could now be completed in a matter of hours or minutes. Your scale is no longer constrained by an overwhelmed data operations department. Rather it can focus on supporting greater volumes of trading, new clients, or new lines of business and potential revenue.
3. Improved client service
As well as being required by regulators, sophisticated and transparent client reporting has become an essential part of the customer experience. Attracting new clients, and retaining existing ones, depends on cutting edge technology that provides sufficient flexibility to service investors how they want to be serviced. Advancements in modern technology have meant investors now expect access to financial account information and investment insights on any device, whenever and wherever they are. Information is also expected to be current and error-free.
Similarly, providing portals for internal users has become an important part of the service mix. For example, equipping relationship managers with mobile, interactive tools allows them to better engage with their end clients while on the road by sharing account information, reviewing and revising investment strategies, and creating opportunities to cross-sell relevant products and services. However, before clients see that data it has to be cleaned and checked – that means properly reconciled, using a strong workflow, at least daily.
4. Service delivery control
By automating the reconciliation process, and switching to an exceptions-based environment, firms can gain enhanced visibility into their counterparties’ service delivery, and identify where process improvements can be implemented. With the aid of sophisticated investigative tools, and reporting capabilities, management can track where breaks occur. Armed with intelligent insights into their business and counterparty interactions, and the quality of service they receive, firms then have the power to review—and where appropriate renegotiate— agreements with their service providers.
5. Enhanced compliance
An automated reconciliation and exception management system reduces errors and operational risk, ensures standardised procedures, and maintains accurate activity records and audit trails for regulatory reporting. A firm that fully automates its processes is in a much better position to demonstrate compliance when required, and keep pace with ever tightening and more complex regulatory requirements.
>> Read about the 11 Key Capabilities to look for when considering an automated reconciliation solution.
> Schedule your free no obligation demo today, if you’d like to learn how Fundipedia can help you transition smoothly with our automated reconciliation module.