TCS BaNCS for Reconciliations

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Intensive scrutiny into �nancial transactions worldwide is pushing organizations to move away from traditional reconciliations processes and implement centralized systems that are transparent, ensuring strong controls and standardization. Zero-code reconciliations applications hosted on the cloud and with AI (Arti�cial Intelligence) capabilities are fast becoming the norm. Accessed through APIs, these solutions allow for a vast amount of data to be studied and, from the recognition of patterns, can perform reconciliations processes faster and more intelligently.

Most reconciliations desks across organizations face one or more of the following challenges:

Interfacing with multiple applications, each of which uses, views and stores data in multiple ways, resulting in a lack of standardization

Need for real-time reconciliations on a single, centralized platform due to compliance norms and detailed scrutiny. Reconciliations cannot be done in silos anymore; they need to roll up into a single view

Need for accuracy, high matching rates and e�cient STP; reducing manual e�ort

In short, organizations wish to spend less time on reconciliations and have the process run by itself with 100% accuracy and consistency.

TCS BaNCS for Reconciliations is an end-to-end, industry-compliant reconciliations solution that is available on the cloud or on premise, supporting both horizontal and vertical growth of reconciliations in an organization. A dedicated data integration layer ensures that extracting data from multiple systems is streamlined and automated. A highly �exible architecture ensures that organizations can perform single-source or multi-source reconciliations spanning lines of business, such as cash management, intersystem, securities processing, among others. Rolling up various types of reconciliations for intelligent reporting is made easier with a con�gurable reporting module, coupled with online dashboards and widgets.

AI capabilities help understand patterns in incoming data and help improve matching e�ciency while reducing man hours spent on this otherwise tedious activity.

With a combination of intelligent features and hosting options, TCS BaNCS o�ers a new approach to reconciliations, one of the most fundamental operations that manage and mitigate risks in any organization.

Leveraging Arti�cial Intelligence

Yet another step towards TCS’ commitment to leverage technology for increased e�ciency is the use of Arti�cial Intelligence (AI) algorithms to match records between two systems. The fuzziness and complexity of data is dealt with using our proprietary String Imprint Matching and Lineage (SIML) Tool. It makes use of the Probabilistic Record Linkage technique in order to cover One-One, One-Many and Many-One record matching. Future releases of the product will enhance AI-based “deep learning” techniques, for it to learn from historic matching patterns and make the process more e�ective over time. The suggested match results help the user save precious time during the manual matching process with the additional bene�t of a more accurate matching.

A uni�ed reconciliations platform

TCS BaNCS can manage reconciliations of transactions emanating from a wide range of business areas. The application is successfully running in over seven organizations, performing cash securities position and inter-system reconciliations.

Streamlined, end-to-end reconciliations for higher e�ciencies and reduced risksUni�cation of multiple portfolios into a single solution ensures that risk controls are in place while it also a�ords management teams the comfort of demonstrating a single system for compliance.

TCS’ extensive experience in managing operations for global organizations combined with the expertise from our Reconciliations’ Centre of Excellence (CoE) has transformed over 20 customer organizations. Through streamlined and e�cient processes, we have ensured that our customers adopt the best global practices when moving to a new reconciliations platform and in running the same.

Uni�cation of reconciliations thus is two-fold; merging various types into a centralized solution with TCS BaNCS, and then entrusting TCS with reconciliations operations, thereby, doing away with managing multiple systems and external stakeholders. Organizations can bene�t through:

Ease of setting common operational controls and standards, resulting in faster user adoption

Centralizing enterprise-wide reconciliations operations, enhancing cost and productivity

Future proo�ng for growth - scalable system and operations to address organization branching into newer lines of business

A well-established operations team and CoE to manage the reconciliations desk (CTB to RTB)

Automating the entire lifecycle of reconciliations

TCS BaNCS for Reconciliations automates and facilitates STP for reconciliations desks. Users no longer need to follow up for data uploads, and ensure that checks and balances are in place before the actual matching is triggered. The solution provides ‘near real-time’ or end-of-day reconciliations as a con�gurable feature. Management teams can get a real-time view into how many high value breaks there are, the currencies that caused these breaks, and so on, which in turn aid in making strategic decisions.

A typical day in the reconciliations user’s life is to log into the system and look at the exceptions generated from the last matching process followed by break investigation, manual matching and mandatory reporting. The matching jobs run in a multi-threaded environment, which means that data does not lie in waiting once loaded. In the post matching phase, reports are generated and emailed to the intended recipients automatically.

Data Loading and Validation: A dedicated interface layer runs 24x7 ensuring that all �les are loaded while ensuring their compliance to built in validations. Successfully validated �les are moved to the business layer for matching. Automatic allocation of all transactions to departments can also be triggered at this stage. Matching jobs are scheduled to run after the loading jobs. Successfully loaded transactions get picked up for matching.

Matching and Exception Handling: Transactions are matched with user de�ned business rules that are set up for various types of matching, and exceptions are displayed to the user for manual matching. Arti�cial Intelligence based algorithms can identify and display the best match results along with a con�dence score, for any manually selected record. This helps users make quick and informed decisions about manual matching while also saving time.

With the new solution

Auto-matching of the same volume of data takes a minute now compared to the previous �ve minutes, which is an improvement of 80% on the time taken

With a highly con�gurable rules engine to support auto-matching, there are 70% more transactions automatically matched o� in each run, thereby, improving operational e�ciencies and sharply reducing risk

The integrated solution has provided the bank with a true, single view of its customers and products, and in the future can be used for securities and other local currency reconciliations

The ‘Bulk Select’ feature in the application allows users to multi-select records for manual matching, assigning them to departments or adding annotations in one go, again saving critical time. The aging feature helps track outstanding transactions.

Investigation: A robust investigation module tracks every exception from inception till closure. Investigation rules can be set up to classify exceptions into “High, Medium and Low” criticalities. Chaser messages can be created and scanned documents attached to exceptions.

Reporting: Reports, as mandated by Sarbanes-Oxley (SOX), are available in the product suite. Reconciliations status and summaries can be pulled up as dashboards on hand-held devices like mobiles and tablets. These dashboards can display data based on the �ltering criteria chosen, for e.g., it could be currency or account-wise and so on. At a high level, this automation can be summarized as the ability to de�ne and automate ingestion of data from multiple sources with built-in validations that run during the load process. The solution’s add-on integration workbench empowers users to build or modify interfaces with their own work�ows, SLAs and resolution mechanisms making sure that audits and controls are in place.

We have realized our vision of having an integrated platform with best-of-breed functionality that dramatically simpli�es our technology landscape. This implementation heralds another milestone in our journey towards providing solutions that anticipate customer and market needs. With each solution from TCS BaNCS being deployed successfully at the Bank, we believe that we have not only a trusted solutions provider but a committed partner to our success in TCS BaNCS.

-- Karl Kumbier, CEO

Centralized Solution

Single installation for multiple legal entities within the same organization / group

Ability to on-board new types of reconciliations with user speci�ed rules

Con�gurability

Con�gurable archival module with rules for what is to be archived when

Con�gurable Allocation and Investigation rules

ReportingScreen export to excel or pdfDashboard views and online summary screensStandard MIS reports for SOX complianceCan send �les to external systems e.g data to the accounting system

Work Segregation

Allocation of users to various reconciliations in the organisation

Manages large volumes by splitting into manageable units with dedicated user access

Online work item tracker

Risk Mitigation

Online audit trails for all user actions

4 eye /6 eye approvals for all user actions

Online account proo�ng and trial balance checks

Managed Interfaces

Formats like .csv, .xml.txt can be con�gured and loaded. (Is SWIFT ready)

Auto- authorized upload, Repair messages loaded with warnings

Checks/proo�ng of �les while loading

Salient Features

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About Tata Consultancy Services Ltd (TCS)Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other can match.TCS ers a consulting-led, integrated portfolio of IT and IT-enabled infrastructure, engineering

TMand assurance services. This is delivered through its unique Global Network Delivery Model , recognized as the benchmark of excellence in software development. A part of the Tata Group, India’s largest industrial conglomerate, TCS has a global footprint and is listed on the National Stock Exchange and Bombay Stock Exchange in India.

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Why TCS BaNCS

The TCS BaNCS product suite for banking, capital markets and insurance enables business transformation in �nancial services. Increasing operational e�ciency and helping �nancial institutions stay agile, our solutions deliver a competitive edge with unmatched certainty. We aspire to be better than established benchmarks, which is why we have embedded an Alpha (“α”), representing superior returns delivered to our customers, consciously and prominently within our brand. The plug and play, component-based product suite consistently turns in impressive benchmark results, with a �ne-tuned, highly scalable technology architecture that supports �nancial institutions with the highest capacities for transaction volumes, peak transactions per second, and transaction history size. With such a track record, it is only natural that the TCS BaNCS product suite can help �nancial institutions of any size gain a distinct, competitive edge.

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