Accounting Reconciliation
The Problem: A leading financial institution that offers a wide range of banking services with a large customer base and numerous financial transactions, faced challenges in reconciling accounts accurately and efficiently. Manual reconciliation processes were time-consuming, error-prone, and required significant human efforts. They faced issues like –
- High Volume of Transactions: The bank dealt with a massive volume of transactions across various accounts, making manual reconciliation a labor-intensive and error-prone task.
- Time-Consuming:Manual reconciliation processes took a considerable amount of time, leading to delays in identifying discrepancies and resolving issues.
- Human Errors: Frequent manual data entry errors and oversight led to inaccurate account reconciliation, causing customer dissatisfaction and regulatory concerns.
- Resource Intensive: Valuable human resources were occupied with repetitive reconciliation tasks, reducing their availability for more strategic financial analysis.
The Solution: The bank decided to implement Robotic Process Automation (RPA) bots to streamline and automate their Account Reconciliation process after looking at the Process Discovery project outcomes and due-diligence reports which had the details related to the gaps in the processes, the manual efforts required to complete the processes, the number of FTEs working on each process, the volume of data being processed and the frequency of each process.
The Outcome: Total 18+ bots were deployed to complete the Account Reconciliation process within a period of 6 months. The company realized below benefits after the successful RPA implantation:
- Accuracy: Automated reconciliation significantly reduced the occurrence of errors and inconsistencies in account statements. Speed: Reconciliation processes that previously took days or weeks were completed within hours, leading to faster resolution of discrepancies.
- Efficiency: The RPA bots worked 24/7, ensuring timely reconciliation without requiring breaks or vacations. Resource Optimization: Valuable human resources were freed from manual reconciliation tasks and redirected toward more strategic financial analysis and decision-making.
- Regulatory Compliance: The automated reconciliation process enhanced compliance by ensuring consistent and accurate record-keeping.
- Customer Satisfaction: Faster and more accurate reconciliation contributed to improved customer satisfaction and trust.
- Reduced Human Errors: The RPA bots performed 90% of all the process steps automatically, which left only 10% for human intervention. This implies that there was a reduction in human errors by 90%.
- Manual Efforts Saved: Total manual efforts were reduced by 50% per month. Cost Savings: Total dollars saved were ~300K per year.