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TRANSCRIPT
May 24, 2017
Richard Chapman, Vice President, Business Development and Strategy,
FIS’ Reconciliation Business
Joseph Vesey, Global Pre-sales Manager, FIS’ Reconciliation Business
How Teller, ATM and Bank Vault Reconciliations Can Help Track Physical Cash
Welcome and introductions
Richard Chapman
– Vice President,
Business
Development and
Strategy, FIS’
Reconciliation
Business
Joseph Vesey
– Global Pre-sales
Manager, FIS’
Reconciliation
Business
Visit the Solutions Expo to learn more
MEET WITH THE FIS RECONCILIATION
TEAM ON A ONE-TO-ONE BASIS
Find out more about how FIS’ Core Banking Reconciliation
solution can help your day-to-day operations
Learn about reconciliation, balancing, and financial close
best practices
Explore how you can leverage FIS’ Reconciliation solution
for all your reconciliation needs
Schedule your own personal detailed solution
demonstration
MAKE USE OF OUR SOLUTION
EXPERTS AT:
BOOTH 504A!
Three main drivers behind reconciliation processes
What is reconciliation?
3. Reporting and regulatory compliance2. Accuracy of transactional activity1. Data integrity / system validation
• General ledger (integrated /
Peoplesoft / 3rd party)
• Core banking (IBS / Profile /
Systematics / 3rd party)
• Payment messages (including SWIFT)
• Confirmation messaging (including
SWIFT)
• Transaction lists (payment schemes
incuding Visa, AMEX etc.)
• BCBS248 (Intraday liquidity monitoring)
• Sarbanes Oxley (control and audit
points)
• Financial reporting (accuracy and
completeness)
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TYPICAL RECONCILIATION ECOSYSTEM
The core banking reconciliation landscape
What is reconciliation?
Internal System Integrity
• Core banking specialist
component to general
ledger reconciliations
• Branch and teller
management
reconciliations
• ATM replenishment
reconciliations
Finance
Operations
Treasury
General
Ledger
(E.g.
Peoplesoft,
Integrated
Ledgers, 3rd
Party)
Central
Operations
Financial
Products
Physical Cash
Loans
Mortgages
Deposits
Teller Cash
Vault
ATM Cycles
Cards
Service
Providers
Correspondent
Accounts
FED / ACH
Payment
Schemes (VISA,
MCARD)
External Validation / Regulatory
Compliance
• Daily FED / ACH account
reconciliation
• Daily correspondent account
reconciliation
• Daily payment scheme
reconciliation (Visa, MasterCard,
AMEX)
• SWIFT messages
Regulatory Compliance
• Monthly GL Recons
• Suspense / Clearing
Recons
Other (e.g. EJs,
Switches)
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General reconciliation challenges
Automation isn’t as simple as it sounds …
1. Data capture
Data from multiple internal
systems
External data from multiple
parties
Inconsistent format (XML,
CSV, SWIFT)
2. Data quality
Lack of common references
and unique identifiers
Data reported at summary not
transactional level
3. Rules complexity
Variable tolerances
Rules often require data
aggregation
Multi-way matching between
3 or more sources
4. Exception mgmt
Excel or manual
documentation is inconsistent
and not transparent
Slow processes cause write-
offs / penalties
Manual data massaging
Low levels of automation
Low levels of auto-matching
Manual investigation
5. Audit and control
Activity should be controlled
and logged
Audit trails of activity should
be captured
Paper based approach
common
Poor control & transparency
RISK AND COSTIntroduces
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Typical processes
“[compared to other
functions] reconciliation
has the highest number
of FTEs"CEB TowerGroup: Boosting Reconciliation Technology ROI Webinar
Cash reconciliation challenges
Three physical cash reconciliation affecting operations today
Variances are determined
when the teller balances their
drawer. Variances are typically
caused by human error
through miss keying, running
transactions for the wrong
amount, giving customers the
wrong amount of money and
similar scenarios.
However, these variances can
potentially be linked to internal
fraud and therefore require
investigation to identify the
root cause and can lead to
disciplinary actions.
ATM Replenishments VaultsTeller Cash
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There is a need to monitor
and maintain vault limits,
manage cash orders via
FED or 3rd party cash
services providers, as
well as processing and
tracking merchant
deposits and processing
entries for offsite ATMs.
“In response to the question
of what is the most critical
change organizations need to
make to their ATM network,
reducing operational costs
was at the top of the list.”
ATM Marketing – ATM Software Trends and Analysis
“According to Shazam, a worldwide
increase in the demand for cash is
predicted to boost the global
installed ATM base skyward over
the next several years. Estimates
predict an installed base as high as
3.9 million units by 2017.”
1. ATM reconciliations
Not just replenishments!
Debit/credit ATM Switch network Bank
Payment association network
Cardholder
• Hardware failures
• Communication failures
• Multiple systems and files
• Transaction issues
• Failed disbursements
• Retractions
• CDMs
• Cash in transit/replenishment
• Timing issues
• Different ATM cycles
• Onsite and offsite ATMs
• Multiple machine types
‒ ATMs/CDMs
• 3rd party net settlement
• Multiple 3rd parties
• Multiple systems and files
• Cut-off/timing Issues
• Chargebacks and disputes
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FIS’ reconciliation solution: a short demonstration
2. Teller cash reconciliations
Over/short calculations and resolution
Customer Teller TellerInsight
Item Processing
General Ledger
• Teller balances drawer
• Validation performed between
TellerInsight and GL
• Variances (over/short) identified
• Produce branch reporting
identifying variances
• Escalation workflow
• Day-by-day trending and
tracking
• Cash deposits/withdrawals
• Checks
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12
FIS’ reconciliation solution: a short demonstration
3. Vault and cash reconciliations
Keeping track and vault movements
ATM
Armoured Car
Cash Vaults
FED or
Cash Services Provider
Branch
General Ledger
• Cash vault
• Inbound/outbound cash ordering
• Online orders
• Merchant deposits
• Offsite ATMs
• Ensure cash vault’s daily ending
balances against GL
• Ordered = received cash orders
• ATM balancing
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14
FIS’ reconciliation solution: a short demonstration
A review of the available service options
FIS can help: FIS’ Core Banking Reconciliation
FIS can provide a complete end to end reconciliation
service:
– Capture of data sources and automated import and
aggregation
– Automated matching for identification of exceptions /
breaking items
– Automated account proofing, submission and approvals
– Full web access and simple deployment
– Management of exceptions and posting of resolution to
core banking solutions
– Complete end to end exception management, tracking
and reporting
Example(s)
– FISPSS full outsourcing in India for ATM and cards
– VBO complete reconciliation outsourcing in USA
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Typical statistics in support of sophisticated reconciliation automation
Moving to an automated reconciliation model
Reduction in total cost
from Excel based
reconciliation
processes
Reduction in total cost
for partially automated
reconciliation
processes
Months is the typical
average return on
investment
<1270% 25%
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Richard Chapman: [email protected]
Joseph Vesey: [email protected]