The client is a reputed multinational NBFC with approximately 1000 branches & a large Retail Asset loan book. There were close to approx. 15000 collection as well as disbursement entries per day which were being generated by the core Loan origination system (LOS) because of EMI collections & disbursements. During the first week of every month approximately a lakh system generated entries was also released by the LOS for dues to be collected during the month. Client had multiple Bank handling the funds & as such there were multiple routing accounts.
Considerable operational time & resources was being spent by the Operations & Accounting teams on reconciling these large volume entries.
Our proposed solution aimed at
- Efficiently importing databases of multiple accounts from different platforms
- Automatic knocking of matched entries based on parameters defined by users &
- Throwing & theming exceptions for further action.
The system developed had a rule engine where parameters could be defined by the users themselves. The import formats of third party ledgers & multiple Bank accounts were standardised to reduce format conversion time. An option for manually knocking of entries within the solution was also given in case auto matching failed. Database optimisation was done effectively to ensure database imports & auto match offs happened within minutes.
Operational time spent on reconciliations was reduced considerably to almost 25% of the original time taken. 80% of entries were matched off automatically by the system with only 20% being thrown as exceptions. These were again resolved thru a manual knock off process. An audit trail was made available on matched off entries for the compliance team to check the veracity of auto & manual knock-offs. As such the CFO was able to present a least operational risk model for unreconciled entries.