Driving Reliability in Reconciliation Processes for Capital Market Firms
The margin for error is narrower than ever in the capital markets, especially in post-trade processing. Even as data volumes grow and regulations becomes more stringent, capital markets firms must make their reconciliation process swift, accurate, and effective. But achieving this is difficult with lean teams and rigid systems. That is where NIIT Technologies can help as an end-to-end reconciliation solution provider. From data collection to exception matching to reporting, we deliver more value through process expertise, robust tools and applications, and cost-effective delivery models.
Reconciliation: Complex, Critical, Costly
ESecurities reconciliation is one of the most critical, danger-fraught processes for capital markets firms. The perils posed by presenting and reporting incorrect data run the full gamut from misguided decision-making to significant penalties to fraud charges.
Lack of in-house expertise, inadequate technologies and tools, and faulty rules have left many reconciliation departments struggling to properly support their customers and protect their firms. This challenge is compounded for firms with $10 billion to $200 billion in assets under management, (AUM) who need to rein in the operational costs and focus on their next growth wave.
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Leverage Our End-to-End Reconciliation Process Offerings
The NIIT Technologies Capital Markets practice provides financial institutions with a comprehensive set of solutions for nostro, depot, private client position, and transaction reconciliations.
Our market, IT, process, and operations experts—in partnership with industry-leading third-party segment specialists—begin by conducting a thorough evaluation of the client’s reconciliation process, both in and of itself, and in comparison with the industry. Our Six Sigma/Lean experts then analyze the client’s operations to determine process refinements or full-scale methodology changes, as well as different tools, to enable greater efficiency and continuous process improvement. The end result for the client is a solution-oriented plan with clearly defined and delineated recommendations, steps, and milestones.
The right rules, tools and applications are one of the key elements of an efficient and effective reconciliation process. A match rate of only 50-60%, which causes substantial manual rework, is a clear sign that something is wrong. Based on each client’s needs and desires, we either integrate new rules and tools into the in-use application, or integrate our own, fully optimized application into the client’s technology environment.
Business Process Outsourcing
Many medium-sized capital markets firms lack the bandwidth to effectively perform the reconciliation process. Through the expertise of NIIT Technologies’ BPO associates and the blended onshore-offshore delivery model, clients gain fault-free reconciliations at a variable, per-match cost structure.
Given the challenges, hazards, and consumption of time associated with the reconciliation process, an increasing number of capital markets firms simply want clean data to present to their customers and report to the regulatory bodies. We are uniquely positioned to provide a highly cost-effective, turnkey solution through our knowledge of the reconciliation process, hosting capabilities, and applications that are easy to use and integrate. This enables the clients to divest themselves of the responsibility toward people, and technology behind delivery
Delivering More Value
Capital markets firms partnering with us achieve more streamlined and agile reconciliation operations as well as greater quality and accuracy. Few key benefits of partnering with us include:
- Reliable reconciliation services review for aged exception and material breaks
- Simplified user administration, data feed setup & maintenance document as needed
- Application of strict controls for escalation and signoffs
- Continuous improvement of match review
The NIIT Technologies Advantage
We have strong, established partnerships with leading third-party niche firms that possess consulting expertise or provide products and applications specific to individual segments in the capital markets space. Through this construct, deep horizontal and vertical domain expertise is leveraged in every capital markets engagement.
While there are many technology and BPM partner options for financial institutions, ranging from boutiques to volume-driven IT companies, NIIT Technologies is the right fit for firms with $10 billion to $200 billion AUM. We are big enough to deliver service excellence and innovative offerings, yet nimble enough to respond with the collaboration and closeness required in a true partnership to optimize the balance among cost, efficiency, and risk mitigation.