Reconciliation & Compliance: Frontier Overview - … & Compliance: Frontier™Overview Jerry Clark...
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Transcript of Reconciliation & Compliance: Frontier Overview - … & Compliance: Frontier™Overview Jerry Clark...
Reconciliation & Compliance: Frontier™ Overview
Jerry Clark
VP and Sr. Region Manager, Fiserv Risk & Compliance
Agenda
• Current Reconciliation Challenges
• Frontier™ Benefits
• Customer Profiles
• Typical Uses for Frontier
• Solution Overview
• Q&A
© 2012 Fiserv, Inc. or its affiliates.
• Q&A
3
Current Reconciliation Challenges
• Data:• Getting the data: print reports,
emails, screen shots
• Accessing different applications forthe data
© 2012 Fiserv, Inc. or its affiliates.
• Matching:
• Labor intensive, time-consuming,manual effort
• Time spent on what matched
• Inconsistent matching across staff:thresholds/ data elements
Current Reconciliation Challenges
• Exceptions:
• Rekeying exceptions into aspreadsheet
• Manually posting correcting entriesinto another application
© 2012 Fiserv, Inc. or its affiliates.
• Signoff:
• Verification of completion ofreconciliation submission - printing
• Verification of sign off
FrontierTM Benefits
• Reduce Risk• Reduce exposure to losses (aged items, manual process risk)
• Full transparency
• Elimination of manual processes
• Improve Efficiency• Reduce Paper/Manual costs
• Reduce Effort (reallocation of staff)
© 2012 Fiserv, Inc. or its affiliates.
• Capacity to accommodate increasing reconciliation volumes
• Compliance• Internal – effectively satisfy internal compliance needs
• External – meet various market/industry regulations and requirements
• Standardization• Single platform for reconciling, managing exceptions, reporting, and
certification
• Easier to manage, maintain, and train staff
Customer ROI Examples
• Average reallocation of 79% of reconciliation staff time
• Average reallocation of 17.5% of exception management staff time
• Average reduction in lost interest and or external capital allocationcosts of 38% based on an average cost of funds at 1.86%
© 2012 Fiserv, Inc. or its affiliates.
• Up to 25% reduction in audit costs based on automated accountcertification and electronic storage of data
Customer Audit Example - $6 billion bank
• 2 people visit 11 affiliate locations twice a year
• Reconciliation audits take 3 weeks each
• 3 weeks * 2 people * 2 times per year = 12 weeks in total
© 2012 Fiserv, Inc. or its affiliates.
• Let’s do the math (conservatively)
• Assuming $150k in total compensation between the 2 employeesand 25% of their time on this task (about right after vacations, etc)
• Cost of reconciliation audits = $37,500 per year
FrontierTM : Enterprise Reconciliation
Goal: Single, integrated transaction processing platformmanaging all areas of operational and balance sheetreconciliation
Cash
Internal DDA
Correspondent Banking
Federal Reserve
Foreign Exchange Accounts
General Ledger Cost Center Balancing
Front-to-back Office (Basel II, SOX, etc.)
InternalTransactions
© 2012 Fiserv, Inc. or its affiliates.14
Federal Reserve
Branch /Teller Cash
Official Checks
ACH
Adjustments Accounts
Bank Fees
Consumer Loans / Lease
Commercial Loans / Lease
Mortgage Servicing
Card (Debit / Credit)
Electronic Funds Movements
InternalTransactions
Suspense Accounts
System-to-System Balancing
Accruals
General Accounting (AR, AP, Assets)
Ledger to Sub-ledger Accounts
Trust and Investment Operations
Position Reconciliation
SecuritiesTrading & Clearance
Securities Lending
Stock Record
Frontier ®
EnterpriseReconciliation
FrontierTM : Complete Reconciliation & Compliance
Frontier
ReconciliationReports
& Extracts
Exception/Break
IdentificationMatching
Detail & Balance Reconciliation
Daily, Weekly, & End of Period
Sign-Off & Approval
Normalize,
Transform & Load
Source ASCII Data FilesDashboard “Viewpoint”
Web
© 2012 Fiserv, Inc. or its affiliates.
Types and Processes:
Auto Matching
− 1 to 1
− 1 to Many
− Many to Many
Interactive Matching
Proposed Matching
Reason Codes:
Amount Discrepancy
Date Conflict
Pricing Break
User Defined…
Report Samples:
Aged Outstanding
Reconciled Items
SOX Compliance
Extract Samples:
GL AmountVariances
Trade Cancel/Replacements
AP Replacement Checks
ACH system
Clearing Entity
ACH
How Premier and Frontier Work Together
– Sample Reconciliation
Your General Ledger feeds Frontier the companyinformation around these transactions.
Frontier reconciles the company information to the
© 2012 Fiserv, Inc. or its affiliates.21
General Ledger Frontier
Frontier reconciles the company information to theactual transactions from the clearing entity file. Frontier feeds any journal entries back to the GL soaccounts are in balance.
Exporting Frontier Write-Off File for Import toGeneral Ledger
© 2012 Fiserv, Inc. or its affiliates.27
If you would like moredetails on accountingand financial controlsolutions, pleasesolutions, pleasecontact your FiservClient Partner, or [email protected].