Time is of the essence. The process of identifying outstanding bulk wire postings and breaking these down to the loan level can be an arduous task. However, with the right strategies and tools in place, this process can be streamlined for greater efficiency and accuracy. ARO helped a top investment bank reap the benefits of an efficient reconciliation setup.

The Client:

A top four global bank, operating in over 35 countries, with assets valued at an estimated $1.9 trillion, effectively deployed a dynamic solution on the ARO platform. The implementation marks a groundbreaking transformation in automating the extraction of loan-level check details for the bank. Leveraging ARO’s robust capabilities, the bank gains advantages such as optimized workflows, heightened productivity, and enhanced precision in managing BAU.

The Need:

The process of identifying exceptional bulk Primary Trading and Settlement Wire (PTSW) postings and subsequently breaking them down to the loan level is time and labor intense. To achieve a reconciliation, loan-level check detail entries were utilized, allowing   a granular examination of each individual loan within the bulk postings. Daily, the reconciliation team identified outstanding PTSW wire transactions that contained a particular description, and these transactions represented bulk PTSW wire postings - requiring the reconciler to complete a loan level breakdown using support provided through email by the business. The reconciler then uploaded the loan level detail to replace the bulk PTSW entry utilizing a manual upload file.

These reports were then referenced manually to match items within the reconciliation system. This process created inefficiencies and was prone to errors, highlighting the need for a more streamlined and automated approach to improve productivity and accuracy in the reconciliation process.

Selecting ARO to build a revolutionary framework:

With ARO, the reconciliation process was enhanced through systematic enrichment of reconciliation items.  Within the ARO framework:

• Loan-level check details are extracted per ACH transactions
• Files undergo thorough cleaning and enrichment processes to incorporate additional details
• Both loan-level checks and aggregated-level transactions are created based on ACH data

EZOPS' reporting engine generates the transaction file in the desired format for the target reconciliation system. The data is then transmitted to the client's reconciliation system to insert the transactions and execute the matching process. This streamlined workflow ensures accurate and efficient reconciliation by leveraging ARO's capabilities for data extraction,transformation, and matching.

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This framework has been constructed with flexibility in mind, accommodating future needs, which offers self-service capabilities to manage the following key components:

• Within the ARO framework, data is extracted and transformed from various systems, undergoing necessary cleaning and enrichment processes
• Customized database tables establish seamless connections, allowing smooth data transfer according to specific data handling requirements
• The Reconciliation Matching Engine plays a vital role in comparing and matching the extracted data, effectively identifying any discrepancies or breaks
• The reporting framework enables robust and comprehensive reporting capabilities, including a scheduling framework which automates the process of generating and distributing reports, accommodating both pre-scheduled and ad-hoc demands

The Business Outcome: Improved Operations

• By automating the extraction of loan-level check details, the process becomes more efficient and reduces manual effort,allowing for faster analysis and identification of relevant information
• The creation of loan-level and aggregate-level details enables comparison with aggregated wire details, facilitating accurate matching and reconciliation, both at the individual loan level and in overall aggregates
• The target reconciliation system is updated to incorporate the automated loan-level check details extraction and matching process, enhancing its effectiveness and ensuring it reflects the most up-to-date information
• Historical data is made readily available,providing a valuable resource for auditing and compliance purposes

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We would like to open a dialogue with you around how EZOPS can help you meet or exceed your goals. Please contact us today.