INTELLIMATCH OpErATIONAL CONTrOL

INTELLIMATCH Operational Control
Achieving operational maturity
Operational Maturity
SunGard’s IntelliMatch Operational Control solution suite
helps financial institutions deploy enterprise matching and
reconciliation solutions to achieve operational maturity. By
enabling business growth through rapid on-boarding of new
reconciliations, consolidation of infrastructure and processes
for lower total cost of ownership, and optimization of
processes for greater efficiency, organizations will reduce
operational risk and minimize costs.
Business overview
The operational maturity of an organization determines its ability
to effectively process the accounting, cash flows, trading and
transactional activity that support its core business with the least
associated cost and minimum risk. Reconciliation and system
validation now constitute a larger part of core-, middle- and
back-office processes and it is critical that these functions be
managed effectively and efficiently in order to achieve
operational maturity.
Reconciliation and system validation
now constitute a larger part of
core-, middle- and back-office
processes and it is critical that these
functions be managed effectively
and efficiently in order to achieve
operational maturity.
This greater focus on reconciliation is being driven by three
primary factors. Firstly, a demand for more robust internal
system validation is needed to comply with new regulations.
This is in addition to more traditional ledger or accounting
reconciliations against external statements. Secondly, a greater
level of reconciliation is needed to achieve transparency of
end-to-end business processes to clearly identify compliance
issues and market and operational risk. Thirdly, lower
performance and profitability of the financial sector, from banks
through to hedge funds, has resulted in greater cost pressures
leading to a focus on operational cost reduction.
By deploying an enterprise reconciliation strategy, organizations
can benefit from greater process transparency, reduced process
cost, lower total cost of ownership and eased administrative
burden, while achieving an increase in internal and external
customer service levels.
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SunGard can help
GROWTH
SunGard’s IntelliMatch Operational Control solution suite helps
financial institutions deploy enterprise matching and
reconciliation solutions to achieve operational maturity. By
enabling business growth through rapid on‑boarding of new
reconciliations, consolidation of infrastructure and processes for
lower total cost of ownership, and optimization of processes for
greater efficiency, organizations will reduce operational risk and
minimize costs.
IntelliMatch Operational Control solution suite helps
organizations achieve operational best practice through the
three key building blocks of operational maturity:
CONSOLIDATION
1.Growth – Rapid on-boarding of new business processes
into an automated environment, expansion of existing
processes, and change management controls that facilitate
simple and risk free promotion of test environments into
production.
2.Consolidation – Management of end-to-end reconciliation
processes and high transaction volumes across multiple
departments and regions from a centrally administrated
platform.
OPTIMIZATION
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3.Optimization – Deployment of business process analytics
for tracking the effectiveness of rules, resources, and
processes, to identify opportunities for rule refinement
and enhanced levels of automation.
››IntelliMatch Nostro Reconciliation gathers intra-day and
Solution components
SunGard’s IntelliMatch Operational Control solution suite
consists of the following solution components:
››IntelliMatch Enterprise Reconciliation supports end-to-end
real-time and end-of-day reconciliation management for all
types of operational environments including cash, securities,
derivatives, and system-to-system; delivering lower
operational costs and reduced operational risk.
››IntelliMatch Trending & Analysis provides comprehensive
reporting to evaluate staff, system rules and business process
effectiveness and enables accurate preparation for business
events such as transactional growth and system upgrades.
››IntelliMatch Business Flow Manager reduces the
time-consuming and repetitive manual tasks associated
with account and transactional exception handling via simple
web designed workflow automation.
››IntelliMatch Payment Investigation automates the payment
investigations process and enables the establishment of, and
strict adherence to, best practice processes that ensure the
values and standards of the bank are maintained consistently.
end-of-day information to provide accurate account balance
information for treasury and cash managers. Rules logic
determines discrepancies, escalates cases for automated
resolution, and flags end-of-day proof and compliance issues
for review, repair and approval.
››IntelliMatch Confirmation Matching enables full automation
of the confirmation matching and discrepancy resolution
process that ensures trade accuracy, reduces risk, and lowers
operational costs.
››IntelliMatch ATM Reconciliation automates the daily
balancing of the ATM network by ensuring all ATM
transactions including cash replenishment, withdrawals,
deposits and transfers are accurately represented in the
bank’s accounts and cash balances are validated.
››IntelliMatch Cash & Liquidity Monitor provides cash flow
management, nostro account limit management and real-time
balance tracking, in addition to cash sweeping and forward
looking nostro projections.
Did you know:
According to McKinsey, back-office costs represent around 20% of banking
operating expenditure. This can be reduced by up to 12% through simple tactical
improvements such as automation and consolidation, in areas including trade
confirmation and reconciliation.1
In a recent TowerGroup survey, 70% of banks stated they are seeking to achieve
a centralized reconciliation environment, however only 48% have currently
managed this.2
Source 1: McKinsey - Rethinking Wholesale Banking Operations.
Source 2: TowerGroup - Enterprise Reconciliations at Tier 1 Banks: Meeting the Operations and Technology Challenges.
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1.MANAGE
GROWTH:
ON-boarding
new
reconciliations
The quickest route to reducing operational cost and risk is
to eliminate or reduce manual activity. Reconciliation and
matching processes are critical operational areas that typically
involve excessive manual processing and may result in high
costs and elevated operational risk. Refinement of system and
statement reconciliation and matching processes must fulfill the
following primary objectives:
››Rapid time-to-market - Delays in establishing the operational
process may impact wider corporate initiatives or prevent the
go-live of revenue generating services. Packaged templates,
and lower dependency on internal IT or consultancy
resources, can minimize project implementation timelines
in order to rapidly deliver a production-ready automated
solution.
››Comprehensive automation - Higher automation leads to
lower costs however, in order to deliver on such automation,
solutions must be able to map complex processes and offer a
wide range of rules to accommodate specific process and
corporate policies.
››Operative simplicity - New processes must be easy to adopt
by existing or new resources in order to adapt to the realities
of staff turnover and training levels, and ensure low
administrative costs.
The satisfaction of these criteria is often fulfilled through tactical
or departmental solutions, leading to multiple reconciliation
platforms being leveraged across different departments within
the same organization; raising total infrastructure costs and
adding administrative burden to the wider organization.
‘Using my reconciliation
workspaces and alerts, I can
respond quickly to resolve
critical issues.’
Mary Peters, 52
operations analyst
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SunGard can help
Did you know:
SunGard’s IntelliMatch Operational Control solution suite
provides out‑of‑the‑box support for common reconciliation
types including nostro reconciliation, payment investigations
and confirmation matching to deliver rapid time-to-market for
industry standard processes. New reconciliations can be created
within a fraction of typical timeframes through the use of simple
wizard based configuration tools that guide business users
through the entire reconciliation process, from data import
template creation through to match rules and dashboard alerts.
Firms purchasing reconciliation solutions cite
ease-of-use as a key requirement. This is deceptively
simple sounding.3
According to SWIFT, between 2 to 5% of all
payments result in an inquiry and each inquiry, on
average, costs 50 times more to complete than a
typical transaction cost.4
Source 3: Aite - Reconciliation Solutions Market Overview: Supply and Demand Evolves.
Source 4: SWIFT - SWIFT for Exceptions and Investigations in a Nutshell.
Risk-free promotion of test and development environments
into production is assured using the proprietary Data Transfer
Manager (DTM) utility. With support for automated capture
and transportation of configurations into production, and
additional features such as full audit trail and four-eyes approval,
organizations can meet internal compliance guidelines without
creating additional administrative overhead.
Easy to use workspaces that can be simply tailored for individual
users, or rolled out across user communities, ensure that staff can
complete daily tasks with minimal on-going training and lower
startup times. Use of in-line prompts can guide users to their next
tasks, helping to reduce the risk of manual errors.
Automation can be delivered as a tactical departmental solution
or, where organizations have multiple reconciliation or matching
requirements, as a centralized enterprise platform.
Automation and control of business processes
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2.CONSOLIDATE:
Lower Total
Cost of
Ownership
Through consolidation of operational environments,
organizations can achieve economies of scale, greater
visibility across processes and regions, and simplify
administrative burden.
This helps to achieve cost reductions along with greater risk and
process control. Three considerations when looking to achieve
operational consolidation are:
››Infrastructure consolidation - Pooling resources, hardware,
software and services will deliver economies of scale for a
lower total cost of ownership.
››Reconciliation best practice - Establishing best practice
reconciliation standards provides greater visibility into process
and reconciliation status across regions and departments, and
helps enhance risk management and control.
››Administrative simplicity - The ability to create and manage
complex rules and workflows without complex code or scripts
reduces overall administrative burden, simplifies oversight
and control, and assures greater long-term system
effectiveness.
Monitoring end-to-end reconciliation automation
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SunGard can help
SunGard’s IntelliMatch Operational Control solution suite can
be deployed as an in-house installation and configuration, or
alternatively as a hosted or fully managed services solution.
A managed service deployment supports simple infrastructure
scaling to accommodate changing business needs, while
ensuring low up-front capital expenditure and reduced
project risk.
Through highly configurable pivot tables and chart-based
reporting, organizations can monitor and track all business
processes and transaction flows in real-time from a single
central dashboard and deliver accurate and timely risk
oversight. Web based configuration of best practice workflows
across reconciliations and transactions allows organizations
to automate escalation, assignment and notification to
stakeholders; ensuring compliance and enabling the satisfaction
of internal or external Service Levels Agreements (SLAs).
With built-in task scheduling and data file mapping tools, in
addition to support for integration with enterprise scheduling
and Extract, Transform and Load (ETL) utilities, organizations can
select a system administration strategy that is most appropriate
to their existing expertise; lowering administrative overhead,
and simplifying the technical architecture.
‘I like that I can now easily track
the status of every reconciliation
from one central dashboard.’
Satish Patel, 32
IT systems administrator
Did you know:
In a recent TowerGroup survey 70% of banks
are planning to centralize their reconciliation
technology tools up from 47% today.
More than half of survey respondents believe
that centralization of processes will provide savings
of 15% and over one-quarter expect savings in
excess of 20% from such an effort.5
Source 5: TowerGroup - Enterprise Reconciliations at Tier 1 Banks - Meeting the Operations
and Technology Challenges.
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3.Optimize:
Ensure
Resource, Rules
and Business
Process Efficiency
Organizations must ensure that the efficiencies obtained
through initial automation of processes continue to be achieved
over time while also striving to find opportunities for further
gains through system and process analysis.
Without intervention or monitoring, typical business process
automation rates will degrade over time causing an increase
in operating costs and a delay in process completion.
This natural reduction in efficiency can occur through changes
or upgrades to internal systems, stale account and cross
reference data, new counterparties or business partners,
changes to external data feeds, new services or products or
changes to regulation and compliance. Institutions that put
in place a process of optimization that includes an iterative
“review and refine” strategy can expect higher automation
and lower operational costs. This requires:
››Quality management information - Detailed metrics are
critical to track and trend the effectiveness of resources,
business rules, counterparties, systems and end-to-end
processes and help resource business growth, target
inefficiencies and provide management reporting.
››Flexible business rule configuration - The empowerment
of line of business owners to create and manage their own
business rules and workflows is critical to reduce the
dependencies on internal IT departments, consultancy
projects or third party engagements.
››Alerts and notification - To ensure transparency and
‘I will invest in new technology
if it is proven to create greater
efficiencies and tangible value.’
communication of performance and SLA levels and enable
proactive or corrective measures to be taken, stakeholders
must be made aware when breaches occur. Thus, tablets and
mobile dashboards or online alert capabilities are preferred
to traditional email.
Andrew Jackson, 43
operations manager
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Track business process efficiency
SunGard can help
Did you know:
SunGard’s IntelliMatch Operational Control solution suite
provides comprehensive trending and analysis to enable
organizations to determine the effectiveness of staff, system
rules and business processes. Configurable charting and
tabular summaries ensure that users can quickly determine
opportunities for process improvement through rules
enhancement or workflow, and can access detailed information
to determine the nature of such changes.
According to Aite reducing complexity and process
reengineering are ranked in the top 10 investments
for 2011 and 2012.
Business agility and operational efficiency were the
top ranked business objectives in order of priority
related to IT spending.6
Source 6: Aite - Capital Markets Technology Spending - Risk, Compliance,
and Uncertainty Abound.
By trending observations over time, operational managers
can accurately forecast for business events such as increases in
trade or transaction volumes, departmental mergers and system
updates, and ensure appropriate resourcing is budgeted.
Business flow management enables line of business owners
to create and update their own specific workflow logic that will
automate time consuming tasks and allow for rapid response
to analytics without IT or external project delays.
The combination of quality management information and
nimble business-owned workflow supports an iterative “review
and refine” approach to system automation that ensures
long-term optimization.
Alerts and email notifications will trigger in real-time as SLAs
are breached or approached, ensuring that stakeholders are
informed in advance of issues and providing much needed
warning to remediate problems before they become critical.
For more information:
email: [email protected]
visit: www.sungard.com/intellimatch
[email protected]
11
About IntelliMatch Operational Control Solution Suite
SunGard’s IntelliMatch Operational Control solution suite helps financial institutions deploy
enterprise matching and reconciliation solutions to achieve operational maturity. By enabling
business growth through rapid on-boarding of new reconciliations, consolidation of infrastructure
and processes for lower total cost of ownership, and optimization of processes for greater
efficiency, organizations will reduce operational risk and minimize costs.
ABOUT SUNGARD
SunGard is one of the world’s leading software and technology services companies. SunGard
has more than 17,000 employees and serves approximately 25,000 customers in more than 70
countries. SunGard provides software and processing solutions for financial services, education
and the public sector. SunGard also provides disaster recovery services, managed IT services,
information availability consulting services and business continuity management software. With
annual revenue of about $4.5 billion, SunGard is the largest privately held software and services
company and was ranked 434 on the Fortune 500 in 2011.
Look for us wherever the mission is critical.
For more information, please visit www.sungard.com
For more information:
email: [email protected]
visit: www.sungard.com/intellimatch
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