How a multinational bank optimized its reconciliations processing to drive profitability
Large global bank unlocks data quality and cost efficiency with FIS Optimized Reconciliation ServiceAt a glance
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Objective
Improve data accuracy, timeliness, process efficiency and control to meet rising transaction volumes and reduce risk.
Results
Replaced manual intervention with automated processes to enhance visibility and control and accelerate exceptions resolution.
Impact
Using the Optimized Reconciliation Service, the bank:
- Slashed items matched manually per person per day by 73%.
- Halved FTE costs.
- Reduced long data waiting times to seconds.
- Has fast, accurate data to better service customers and expand its business.
Client profile
The client is a large multinational bank providing trusted financial services spanning personal, commercial, corporate and investment banking, insurance and asset management to individuals, businesses and institutions in over 20 countries. Accurate data goes to the heart of the bank’s ability to service clients, meet its regulatory compliance responsibilities and drive profitability, making an effective data reconciliations capability indispensable.
The challenge
Delivering data accuracy, timeliness and process efficiency amid rising transaction volumes have long tested the bank’s operations. Lack of automation and standardization for common reconciliation types as volumes increased and new reconciliations were required led to manually intensive reconciliation operations. Inefficient process flows produced significant data-return wait times, redundant data and unnecessary cost.
The solution
The crucial first step was to take time to understand the client’s specific pain points, insights FIS® could use to deliver the most effective solution to help the bank’s money work harder.
The bank already used FIS Data Integrity Manager, a SWIFT-accredited automated reconciliation system that centrally tracks data integrity and reconciliation processes. Next step was to extend the relationship by adding FIS Managed Reconciliation Service, along with the supplementary Optimized Reconciliation Service (ORS) capability. The combined reconciliation services unlock efficiencies with end-to-end reconciliation support spanning infrastructure hosting, run and change activities, and reconciliation maintenance through a continuous optimization component.
Results
The first reconciliations went live successfully in April 2024. The benefits to the client have been dramatic:
- Retiring manual processes and replacing inefficient process flows have slashed the items matched manually per person per day by 73%.
- Manual matching has been reduced by approximately 600,000 transactions to date and rising.
- The system match rate has jumped from 87% to 97%.
- Improved automation has cut FTE costs in half.
- New process flows have reduced long data waiting times to seconds.
- The new process uncovered and rectified historical reconciliation issues that were not being reported or investigated.
- Increased control and accuracy with added system reconciliation proofing.
- Automation process overhaul has resulted in zero service interruptions.
Taking advantage of the FIS Optimized Reconciliation Service allows the bank to keep the full reconciliations and exception management process in the Data Integrity Manager application. This, coupled with additional reporting tools, provide more visibility and control, and lessen the risk that an exception is not investigated promptly.
During onboarding, FIS standardized the reconciliations, ensuring common reconciliation types are configured alike. This enhancement provides improved alignment to the bank’s control requirements and system setup optimization, ensuring reconciliation workflows match organizational policies. FIS also reconfigured the user interface to meet bank-specific workflows, greatly enhancing the user experience and productivity. The improved navigation and new reporting tools now provide each user with the information views they need to manage their workload efficiently and accelerate exceptions investigation and resolution times.
First-class support, SLAs and peace of mind
After go-live, the continuous improvement service component is helping deliver reconciliations accurately and efficiently with no outages. A dedicated support model in partnership with our customer experience colleagues has a fast turnaround for any SLA-covered issues that arise. This gives the client peace of mind and enables the bank to focus on what really matters to its business: fast resolution of its reconciliation exceptions to better service customers and expand its business.
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