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How Teller, ATM and Bank VaultReconciliations Can Help TrackPhysical CashRichard Chapman, Vice President, Business Development and Strategy,FIS’ Reconciliation BusinessJoseph Vesey, Global Pre-sales Manager, FIS’ Reconciliation BusinessMay 24, 2017
Welcome and introductionsRichard Chapman– Vice President,BusinessDevelopment andStrategy, FIS’ReconciliationBusinessJoseph Vesey– Global Pre-salesManager, FIS’ReconciliationBusiness
Visit the Solutions Expo to learn moreMEET WITH THE FIS RECONCILIATIONTEAM ON A ONE-TO-ONE BASIS Find out more about how FIS’ Core Banking Reconciliationsolution can help your day-to-day operations Learn about reconciliation, balancing, and financial closebest practices Explore how you can leverage FIS’ Reconciliation solutionfor all your reconciliation needs Schedule your own personal detailed solutiondemonstrationMAKE USEOF OUR SOLUTIONEXPERTS AT:BOOTH 504A!
What is reconciliation?Three main drivers behind reconciliation processes1. Data integrity / system validation General ledger (integrated /Peoplesoft / 3rd party)Core banking (IBS / Profile /Systematics / 3rd party)2. Accuracy of transactional activity Payment messages (including SWIFT)Confirmation messaging (includingSWIFT)Transaction lists (payment schemesincuding Visa, AMEX etc.)3. Reporting and regulatory compliance BCBS248 (Intraday liquidity monitoring)Sarbanes Oxley (control and auditpoints)Financial reporting (accuracy andcompleteness)Powered by IntelliMatch
What is reconciliation?The core banking reconciliation landscapeTYPICAL RECONCILIATION Providers Core banking specialistcomponent to generalledger spondentAccounts Branch and tellermanagementreconciliationsMortgagesInternal System Integrity ATM replenishmentreconciliationsDepositsCardsPhysical , 3rdParty)FED / ACHExternal Validation / RegulatoryCompliance Daily FED / ACH accountreconciliation Daily correspondent accountreconciliation Daily payment schemereconciliation (Visa, MasterCard,AMEX)PaymentSchemes (VISA,MCARD) SWIFT messagesTeller CashOther (e.g. EJs,Switches)VaultATM CyclesRegulatory Compliance Monthly GL Recons Suspense / ClearingReconsPowered by IntelliMatch
General reconciliation challengesAutomation isn’t as simple as it sounds 1. Data capture2. Data quality Data from multiple internalsystems Lack of common referencesand unique identifiers External data from multipleparties Data reported at summary nottransactional level Inconsistent format (XML,CSV, SWIFT)Manual datamassagingLow levels ofautomationIntroduces3. Rules complexity Variable tolerances Rules often require dataaggregation Multi-way matching between3 or more sourcesLow levels ofauto-matching4. Exception mgmt Excel or manualdocumentation is inconsistentand not transparent Slow processes cause writeoffs / penaltiesManualinvestigation5. Audit and control Activity should be controlledand logged Audit trails of activity shouldbe captured Paper based approachcommonPoor control &transparencyRISK ANDCOSTTypicalprocessesPowered by IntelliMatch
“[compared to otherfunctions] reconciliationhas the highest numberof FTEs"CEB TowerGroup: Boosting Reconciliation Technology ROI Webinar
Cash reconciliation challengesThree physical cash reconciliation affecting operations todayATM Replenishments“In response to the questionof what is the most criticalchange organizations need tomake to their ATM network,reducing operational costswas at the top of the list.”“According to Shazam, a worldwideincrease in the demand for cash ispredicted to boost the globalinstalled ATM base skyward overthe next several years. Estimatespredict an installed base as high as3.9 million units by 2017.”Teller CashVariances are determinedwhen the teller balances theirdrawer. Variances are typicallycaused by human errorthrough miss keying, runningtransactions for the wrongamount, giving customers thewrong amount of money andsimilar scenarios.However, these variances canpotentially be linked to internalfraud and therefore requireinvestigation to identify theroot cause and can lead todisciplinary actions.VaultsThere is a need to monitorand maintain vault limits,manage cash orders viaFED or 3rd party cashservices providers, aswell as processing andtracking merchantdeposits and processingentries for offsite ATMs.ATM Marketing – ATM Software Trends and AnalysisPowered by IntelliMatch
1. ATM reconciliationsNot just replenishments! CardholderHardware failuresCommunication failuresMultiple systems and filesTransaction issuesFailed disbursementsRetractionsCDMsDebit/credit ATM3rd party net settlementMultiple 3rd partiesMultiple systems and filesCut-off/timing IssuesChargebacks and disputesSwitch networkCash in transit/replenishmentTiming issuesDifferent ATM cyclesOnsite and offsite ATMsMultiple machine types‒ ATMs/CDMsBankPayment association networkPowered by IntelliMatch
FIS’ reconciliation solution: a short demonstration
2. Teller cash reconciliationsOver/short calculations and resolution Cash deposits/withdrawalsChecksItem Processing TellerCustomer TellerInsightGeneral Ledger Produce branch reportingidentifying variancesEscalation workflowDay-by-day trending andtrackingTeller balances drawerValidation performed betweenTellerInsight and GLVariances (over/short) identifiedPowered by IntelliMatch
FIS’ reconciliation solution: a short demonstration12
3. Vault and cash reconciliationsKeeping track and vault movementsCash Vaults Cash vaultInbound/outbound cash orderingOnline ordersMerchant depositsOffsite ATMsBranch Armoured CarGeneral Ledger Ensure cash vault’s daily endingbalances against GLOrdered received cash ordersATM balancingATMFED orCash Services ProviderPowered by IntelliMatch
FIS’ reconciliation solution: a short demonstration14
FIS can help: FIS’ Core Banking ReconciliationA review of the available service optionsFIS can provide a complete end to end reconciliationservice:– Capture of data sources and automated import andaggregation– 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 tocore banking solutions– Complete end to end exception management, trackingand reportingExample(s)– FISPSS full outsourcing in India for ATM and cards– VBO complete reconciliation outsourcing in USAPowered by IntelliMatch
Moving to an automated reconciliation modelTypical statistics in support of sophisticated reconciliation automation70%25% 12Reduction in total costfrom Excel basedreconciliationprocessesReduction in total costfor partially automatedreconciliationprocessesMonths is the typicalaverage return oninvestmentPowered by IntelliMatch
Richard Chapman: richard.chapman@fisglobal.comJoseph Vesey: joseph.vesey@fisglobal.com
potentially be linked to internal fraud and therefore require investigation to identify the root cause and can lead to disciplinary actions. ATM Replenishments Teller Cash Vaults Powered by IntelliMatch There is a need to monitor and maintain vault limits, manage cash orders via FED or 3rd party cash services providers, as well as processing and
