Automation is adding twist to the banking reconciliation tale by driving it towards greater efficiency.
FREMONT, CA: The pursuit to attain higher levels of efficiency in operations is making banks invest in advanced technology. Even though Reconciliation protects banks from frauds, its process has always been a pain point for banks owing to its tedious nature. However, the technology of automation is now in the process of revamping reconciliation for banks. From a tiring and time-taking process that takes up hours, reconciliation is on its way to becoming convenient, accurate, and automated. Banking firms can make the bank statements conform to accounts automated with the following approach.
• Accumulate Data with Automation
Data management is the first step while automating reconciliation. Extracting data from all the relevant sources and depositing them at a central and accessible platform is essential. A manual process of extracting vast volumes of transaction data is highly inefficient. By automating the process of data extraction, the first level of transformation is achieved. Banks can look to adopt RPA tools provided by third-party firms to facilitate automation.
• AI-based Matching
The manual matching process should give way to automation backed matching. The best way to automate matching is by deploying matching solutions that have the backing of artificial intelligence technology. With AI, digital solutions can easily compare datasets and segregate the details of the transactions that do not match with the bank account statements. Machine learning technology also contributes to building system intelligence to enhance the credibility of automation.
• Combining Human and Automation Efforts
Once automated account matching processes generate information regarding mismatching items, banks should prioritize a mixed approach. Conventionally, the reconciliation process sees a high amount of involvement of professionals. With a combined approach, AI-backed solutions can help prioritize reconciliation and help prevent the staff from spending time on less critical cases.
By bringing together the above technological and strategic capabilities, banks can easily facilitate the automation of reconciliation.