Transactional reconciliations are a key part of the overall control infrastructure for financial services firms. In many firms, issues relating to intercompany trade reconciliations pose significant control challenges
Intercompany reconciliation challenge
Intercompany trade reconciliations are a central piece of the control infrastructure for trading businesses. Disparate trading infrastructure across different business lines make it difficult to link trades booked in different trade capture systems where no common referencing exists.
Intercompany reconciliation delivered
Our client’s existing intercompany reconciliation process was a combination of automated reconciliations and manual intervention which was slow, costly and unreliable. Manual processes had to be used on over a third of the trade population (1.5mn trades, 70+ booking systems).
We developed a highly flexible and transparent analytics matching engine to replace our client’s existing processes. We constructed analytic logic built in modular blocks, allowing the process to be layered in a clear manner.
Our solution lead to a much improved match rate with improved accuracy. Increased transparency over the match logic used to derive a given matched pair, increasing ease of audit and error tracking.