Firms that can onboard new reconciliations quickly are more agile and have more efficient operations. But onboarding is a tricky task. Data is growing in both volume and complexity, and traditional reconciliation technology is no longer able to keep up.
Research from Aite Group found that it takes nearly 74 business days on average to onboard a complex reconciliation. That’s time most companies don’t have, so they are forced to rely on manual processes to plug the gap.
It’s time to view technology as an enabler of progress, rather than a barrier to it. Advances in areas such as no-code solutions and machine learning have made it possible to onboard reconciliations in an entirely new way.
The second part of our industry best practice guide, The Reconciliation Maturity Model, explores the challenges and opportunities surrounding reconciliation. We begin by examining what is stopping firms from making changes. Then, we look at the new technology that can make traditional onboarding pain points a thing of the past.
The key role of onboarding in the quest for reconciliation maturity
Part One of the Reconciliation Maturity Model outlined the five stages of reconciliation maturity. We explored the advantages for firms in seizing the opportunities presented by new technology to automate their data management.
The whitepaper took a broad look at the current state of reconciliation and outlined a vision for the future. One where reconciliations are conducted instantly by self-optimising systems. A future where small teams of people oversee an ecosystem of sophisticated machine learning and data management tools.
The five stages of maturity outlined in the Reconciliation Maturity Model are:
- Manual – All reconciliations are carried out manually, using spreadsheets, or via homemade applications. There is a high risk of error and lack of auditability.
- Hybrid – Point system(s) in place for specific data types, while other reconciliations are carried out on spreadsheets or manually. Teams/processes are disparate, reconciliation as a function is fragmented and duplicate work is likely.
- Automated – All reconciliations are consolidated onto automated systems. Small teams build and onboard reconciliations, and oversee exception investigation. There are significant efficiency improvements and risk is reduced.
- Improving – Additional data quality controls are active throughout the data lifecycle. The simplification of processes is possible, leading to system decommissioning and consolidation.
- Self-Optimising – Full automation is deployed across the entire lifecycle of reconciliation, from onboarding to exception resolution, with very little involvement from staff. This is made possible via a machine-learning enhanced system that can continuously adapt and improve based on the data it handles. Internal reconciliations are removed, leading to major reductions in cost and complexity.
Now, with Part Two, we start to outline specific steps firms can take to unlock the full potential of automation. We’re focussing on onboarding and configuration in this whitepaper. It’s a key aspect of the process, where many of the pain points traditionally associated with reconciliation have their roots.
- Why firms currently struggle to onboard reconciliations, and why it takes so long
- A typical onboarding process
- The need to futureproof onboarding
- How new technology can drive change in reconciliations
- The key features of new technology
- How onboarding impacts the 5 stages of maturity
Unlock speed and agility with a new approach to onboarding reconciliations
Reaching the automation stage of reconciliation requires a new way of thinking, and nowhere is this truer than for onboarding. It is here that firms stand to gain the most by giving end users the tools they require. This way, lengthy multi-team projects become unnecessary, rather than the norm.
Automation with the right technology can reduce the time taken to onboard a new reconciliation from days and weeks to hours. Once this is achieved, the door is opened to new opportunities and efficiency to flow through the whole enterprise.
Download Part II of the Reconciliation Maturity Model to discover how.