Asset managers are beginning to realize the disadvantages of using multiple systems and spreadsheets for reconciliation, most notably the drain on their operational efficiency and lack of a holistic view of their operational risk.
The use of multiple systems forces managers to work in silos, therefore making it hard to achieve operational efficiency due to the tendency to make solution choices based on organizational structures and processes already in place. This in turn leads to limited team collaboration and visibility into required data.
With this, both the reconciliation process and exception management process are treated as departmental functions, as shown below, generating redundant efforts that result in increased errors and unnecessary operational risks.
- Operations – Daily reconciliation of transactions and positions
- Accounting – NAV and P&L reconciliation
- Finance – Monthly, quarterly and yearly market value reconciliation
- Collateral – Daily reconciliation of collateral balances
In almost all of the above cases, departments perform their portion of the reconciliation process using spreadsheets. The problem with this approach is that the data feeds into multiple disparate systems—including order management systems, portfolio management systems, reference masters and third-party vendor systems—all of which make manual, Excel-based reconciliation inefficient and time consuming.
To address this issue, many are seeking comprehensive reconciliation and exception management solution to support all parts of the reconciliation process across the front and middle office. Leveraging an integrated approach of technology and operations management, asset managers can use this solution to gain better control and improve decision making.
Powered by intelligent automation, IVP’s Reconciliation as a Service is a cloud-based solution that uses a unique combination of artificial intelligence and machine learning technology to help asset managers maximize speed, efficiency and accuracy. It reconciles positions, activities and cash balances against prime brokers, custodians, fund administrators and others with “any-to-any” flexibility. With IVP’s Reconciliation as a Service, managers can access all reconciliations in a central location, helping them reduce operational risk and harness the flexibility they need to be able to achieve peak performance.
To learn more about IVP’s Reconciliation as a Service,visit https://www.ivp.in/services/reconciliation-service/ or contact us at firstname.lastname@example.org to schedule a demo.
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