Success Story Library
Allianz Life’s New Recon System Is Making Time for Business
Overview
Financial Insights Opinion
Recon is fundamental to all transaction processes and therefore all business processes. Yet there are so many companies still using error-prone and potentially risky methods of assuring that correct and legitimate data is posting to their financial systems. In 2004, we estimated that more than half of all reconciliation processes, globally, were done with spreadsheet tools, semimanual and manual processes, or partially by systems of record. However, Sarbanes-Oxley (and FASB, IASB, and IFRS) requirements for sign-off and reporting combined with treble audit costs to ascertain and assure compliance have caused a resurgence in reconcilement automation.
In 2007, we estimate that only 20% of these manual reconciliation activities have been converted to automated systems, have disappeared because of reengineering, or have been outsourced. That leaves much more to automate, which has breathed new life into reconciliation systems. These solutions are now evolving into transaction process management and compliance platforms such as Trintech’s ReconNET and AssureNET GL. This is driving growth in IT spending on recon/transaction process management solutions by institutions and financial services firms to a five-year CAGR of 9.9%, faster than overall IT spending in banking, capital markets, and insurance. Although compliance has driven new uptake and update of automated reconciliation systems, making [more time] for business is as compelling an argument to invest in a reconciliation system as Allianz Life shares with us in this case study of the implementation of ReconNET in the company’s treasury operations.
Please continue reading the Allianz Life case study (pdf).
