Ask most financial institutions about onboarding new reconciliations and the response you’ll get is one big manual headache. Luckily the status quo with lengthy delays and manual processing issues is undergoing a shakeup. A recent benchmark survey with Aite Group reviews the existing onboarding challenges and highlights room for improvement.
Onboarding a new reconciliation has a complex lifecycle. Typically, it will include defining business needs and technical requirements, design, configuration and development before even building the new reconciliation. The final stage involves the system integration which isn’t the easiest of tasks especially with multiple in-house and legacy solutions. In addition, the more complex the data and the more systems to extract it from means the longer the process. On average, onboarding a new reconciliation can take anywhere between one to six months. The fees become a bit unpredictable too – anywhere from $230K for a simple reconciliation to $1.2M for one that’s more complex.
As if this situation isn’t bad enough, extract, transform and load (ETL) processes required to normalise data to be consumed and parsed by outdated reconciliation systems complicates matters further. ETL is expensive to run and often requires manual intervention.
Looks like the status quo no longer fits the bill. Isn’t it about time to shake up onboarding and actually manage the entire process in a way that is timely and cost efficient?
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