Reconciling Banking Systems

 

This project illustrates our approach to tackling a complex institutional banking challenge - ensuring integrity of information across multiple systems.

 

One of Australia's largest institutional banks had a team of product controllers that on a daily basis reconciled the trading profits across the various trading systems with the profits automatically recorded in the back office accounting systems. This is a critical function that ensures the integrity of the bank's accounting and trading systems. Given the complexity of the function, the product control team had grown in size to over 80 people over time and the quality and consistency of the reconciliation function was found to be variable across the team. This was in large part due to the quasi manual nature of the reconciliation processes and the lack of a uniform approach across trading systems and across teams.

 

After analysing the situation, it became apparent that a standard approach across all the product controllers and a more sophisticated toolset would yield substantial benefits. In collaboration with the client team, Quantalytic designed, built and deployed a large scale, comprehensive reconciliation and reporting system that automated many of the processes associated with this function. The system automatically identifies "breaks" between any particular trading system and the associated P&L accounts in the general ledger. It allows for comprehensive "drill-downs" into the data in either system to systematically identify the cause of the discrepancy. After identifying the cause of the break, the tool allows for centralised adjustments that ensures the integrity of the daily P&L reporting. The tool is in use across the product control team and has led to significant efficiency gains in the business.

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