The changing regulations coupled with evolving technologies are making reconciliation platforms as one of the most critical elements of the financial industry. On the flip side, while most financial institutions use advanced accounting systems to automate general ledger and accounting processes, reconciliation and certification processes are still completed using a spreadsheet. However, as data volumes grow and regulations become more stringent, organizations must make their reconciliation process swift, accurate, and effective. By automating the reconciliation process of corporate accounts, financial institutions can boost the speed of one of the most time-consuming tasks in any finance and accounting department.
In this present era of the digital transformation of financial activities, automating daily workflows can save time as it cuts down on the multiple rounds of paperwork previously required to verify and certify financial information manually. Teamed with Machine Learning (ML) and Natural Language Processing (NLP), automated reconciliation platforms are significantly reducing the error almost by half. This has further promoted better visibility of the vast amount of data and rapid resolutions in terms of exceptional issues, preventing manual interventions in the process. Additionally, today the cloud-based reconciliation processes enable accountants to access data more efficiently and provide an up-to-date overview of the current status and overall close process.
With blockchain-powered reconciliation platforms, organizations are now more capable of streamlining their reconciliation processes. Auditors are now capable of sharing datasets because of the integration of blockchain with reconciliation platforms, allowing them to complete tasks in real-time. Other features of the advanced reconciliation platforms used today include comprehensive trend analysis that optimizes the match rate and lowers the number of expectations. Most organizations also set materiality thresholds and tolerances to avoid wasting time in reconciling low dollar values. The need for manual intervention is further lowered as exceptions on the platform are immediately visible across the enterprise. All these developments are aimed at a single objective—shortening the financial closings, without compromising on the quality. Automated reconciliation platforms have also significantly lowered the risk of financial misstatement with their transactional-level matching feature.
Understanding the changing times, Capital Markets CIO Outlook has compiled a list of 10 Reconciliation Platform Solution and Service Providers to guide banks and other financial institutions in harnessing the power of technology to tackle today’s reconciliation challenges, reduce workload, and increase efficiencies. And as new technologies are developed at a rapid pace, we are glad to feature the Reconciliation Platform Solution and Service Providers that are at the forefront of revolutionizing the capital markets in the financial sector through their groundbreaking reconciliation solutions and services. We hope this issue of the Capital Markets CIO Outlook helps you build the partnership needed to foster a technologically-driven financial environment.
We present to you, Capital Markets CIO Outlooks’ “Top 10 Reconciliation Consulting/Services Companies - 2019.”