How Teller, ATM and Bank Vault reconciliations Can Help Track Physical Cash

Transcription

1 How Teller, ATM and Bank Vault reconciliations Can Help Track Physical Cash Richard Chapman, Vice President, Business Development and Strategy, FIS Reconciliation Business Joseph Vesey, Global Pre-sales Manager, FIS Reconciliation Business April 11, 2017

2 Welcome and introductions Richard Chapman Vice President, Business Development and Strategy, FIS Reconciliation Business Joseph Vesey Global Pre-sales Manager, FIS Reconciliation Business

3 What is reconciliation? Three main drivers behind reconciliation processes 1. Data integrity / system validation 2. Accuracy of transactional activity 3. Reporting and regulatory compliance General ledger (integrated / Peoplesoft / 3 rd party) Core banking (IBS / Profile / Systematics / 3 rd 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)

4 What is reconciliation? The core banking reconciliation landscape TYPICAL RECONCILIATION ECOSYSTEM Internal System Integrity Core banking specialist component to general ledger reconciliations Branch and teller management reconciliations ATM replenishment reconciliations Central Operations Financial Products Loans Mortgages Deposits Cards Physical Cash Teller Cash Finance Operations Treasury General Ledger (E.g. Peoplesoft, Integrated Ledgers, 3 rd Party) 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 Vault Other (e.g. EJs, Switches) ATM Cycles Regulatory Compliance Monthly GL Recons Suspense / Clearing Recons

5 General reconciliation challenges Automation isn t as simple as it sounds 1. Data capture 2. Data quality 3. Rules complexity 4. Exception mgmt 5. Audit and control Data from multiple internal systems External data from multiple parties Inconsistent format (XML, CSV, SWIFT) Lack of common references and unique identifiers Data reported at summary not transactional level Variable tolerances Rules often require data aggregation Multi-way matching between 3 or more sources Excel or manual documentation is inconsistent and not transparent Slow processes cause writeoffs / penalties Activity should be controlled and logged Audit trails of activity should be captured Paper based approach common Manual data massaging Low levels of automation Low levels of auto-matching Manual investigation Poor control & transparency Introduces Typical RISK AND processes COST

6 [compared to other functions] reconciliation has the highest number of FTEs" CEB TowerGroup: Boosting Reconciliation Technology ROI Webinar

7 Cash reconciliation challenges Three physical cash reconciliation affecting operations today ATM Replenishments 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. 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 Teller Cash 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. Vaults There is a need to monitor and maintain vault limits, manage cash orders via FED or 3 rd party cash services providers, as well as processing and tracking merchant deposits and processing entries for offsite ATMs. ATM Marketing ATM Software Trends and Analysis

8 1. ATM reconciliations Not just replenishments! 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 Cardholder Debit/credit ATM Switch network Bank 3 rd party net settlement Multiple 3 rd parties Multiple systems and files Cut-off/timing Issues Chargebacks and disputes Payment association network

9 FIS Reconciliation solution: A short demonstration

10 2. Teller cash reconciliations Over/short calculations and resolution Cash deposits/withdrawals Checks Item Processing Customer Teller TellerInsight Teller balances drawer Validation performed between TellerInsight and GL Variances (over/short) identified General Ledger Produce branch reporting identifying variances Escalation workflow Day-by-day trending and tracking

11 FIS Reconciliation solution: A short demonstration

12 3. Vault and cash reconciliations Keeping track and vault movements Cash Vaults Cash vault Inbound/outbound cash ordering Online orders Merchant deposits Offsite ATMs Branch ATM Armoured Car General Ledger Ensure cash vault s daily ending balances against GL Ordered = received cash orders ATM balancing FED or Cash Services Provider

13 FIS Reconciliation solution: A short demonstration

14 % saving from automation Moving to a centralized reconciliation model Expected return on investment Using Excel Partially automated Average saving Data Capture Matching Exceptions Reporting Reconciliation stage

15 Moving to an automated reconciliation model Typical statistics in support of sophisticated reconciliation automation 70% 25% <12 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

16 FIS can help: FIS Core Banking Reconciliation A review of the available service options 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

17 $ Millions FIS Core Banking Reconciliation Benefits Summary Typical 12 month return Operational transparency Significant cost reduction Continual process improvement model Enhanced scalability Complete audit and process control Management statistics and reporting Supported core banking and general ledger integration Typical return on investment over time Managed through existing FIS relationships Can cover future reconciliation needs 0 Year 1 Year 2 Year 3 Year 4 Year 5 Typical FIS Reconciliation

18 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 408A!

19 Richard Chapman: Joseph Vesey: