What Drives the Growing Popularity of Reconciliation Solutions?

What Drives the Growing Popularity of Reconciliation Solutions?

By Capital Markets CIO Outlook | Thursday, November 28, 2019

ReconciliationAdvanced reconciliation solutions could be the key to optimizing trading operations for negligible losses and maximum returns.

FREMONT, CA: The trend of adopting turnkey, third-party reconciliation solutions is gaining significance quickly. Although digitalization might be the one underlying factor contributing to this trend, several minute considerations can explain the growing inclination of capital market firms towards reconciliation solutions. Market reports also point to increasing demand for vendor-provided reconciliations solutions. The technological expertise that solution-providers possess translates in


to better reconciliation capabilities for capita market companies. Some of the reasons behind the exponential rise in the popularity of modern reconciliation solutions among capital market companies can be understood from this article. 

• Centralizing Reconciliation Effectively

The volume of trade is on the rise. In addition to that, the digitalization of trading infrastructure has led to the emergence of several channels. For effective reconciliation, capital market companies need to accumulate the distributed data sets from across channels. Latest reconciliation solutions enable effective integration of all sources of critical trading and transaction data, resulting in a centralized repository makes reconciliation better.

• Minimizing Risks and Maximizing Compliance

Risk and regulation scenarios are changing continuously. Reconciliation solutions offer some valuable tools that help companies ensure compliance. With advanced solutions, reconciliations errors and imbalances can be easily detected. Record and books can be matched conveniently to ensure seamless risk and regulation management. Confirming to volatile, global standards is easy when reconciliation-reporting tools offer relevant capabilities.

• Reconciling Records with Automation

Automation in reconciliation is very valuable for capital market companies. By automating fundamental reconciliation tasks, companies can easily enhance operational efficiencies. Besides, the elimination of human interference adds a layer of accuracy to reconciliation. Automated digital solutions are now becoming a standard requirement to address trade expansion and staff crunch. Now it is feasible to replace back-office staff and cut down on labor costs by using automated reconciliation processes.

The challenges to reconciliation are falling, thanks to reconciliation solutions. One can expect the popularity of capital market reconciliation solutions to continue on its growth trajectory.

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