How is it that one of the most mundane and tedious processes in investment management is also one of the most critical? I’m talking about reconciliation, the bane of many a back office. In a business built on trust, now being subjected to greater regulatory scrutiny and demands for transparency than ever, you might expect accurate reconciliation to be a high priority at most firms. Yet many firms are still using spreadsheets and ticking off every transaction manually, which is not only laborious and time consuming, but also fraught with risks.
Moreover, daily reconciliation is widely viewed as an industry best practice and real-time reconciliation is on the horizon. As trading volume escalates, firms that can’t keep up with these tightening time frames run the risk of getting in hot water with regulators and investors alike.
Reconciliation is ripe for solutions that save time and labor, improve quality, and reduce operational risk. Advent has been working with clients for years on ways to streamline the reconciliation process. Today, through our affiliation with our parent company, SS&C, we are in a position to offer even more robust alternatives:
- Automation: A key goal of reconciliation is to find and resolve exceptions quickly. Why should operations teams have to wade through hundreds of unexceptional transactions to find the breaks, when an automated solution can surface them immediately? SS&C’s Recon™ system is just such a solution, bringing firms an exception-based approach to reconciliation that enables administrators to focus on managing breaks in order of priority.
- Outsourcing: Even with automation, many firms may still find that in-house reconciliation is not an effective use of staff time and resources. A custom-tailored outsourcing service may be the answer. SS&C’s Reconciliation and Data Collection solution, which leverages a combination of automation technology and specialized expertise, figures prominently in the firm’s vast menu of business process outsourcing (BPO) services for financial institutions.
Prompt and accurate reconciliation and exception management are quickly becoming both regulatory and competitive imperatives. We are actively working with our clients to deliver high-quality solutions that reduce this onerous back-office burden and give firms greater agility to compete in a dynamic market.
For more information on Recon, contact one of our Advent Specialists.
Neil Sullivan is a Senior Director with SS&C Advent. He has spent the last 19 years working with financial software companies to deliver innovative front, middle, and back-office solutions to global asset managers, hedge funds and service providers. Neil is currently working on the business development and integration planning between SS&C and Advent solutions.