Auto-Reconciliations in the Cloud enables efficiency of digital transformation programmes with up to 90% improvement in reconciliations time, and 75% reduction in write-offs.
“We call it fixing the leaks”, says Martin Dolny, director of Africa & UK at MoData.
“The dramatic rise in the number of digital transactions of all types over recent years, means curiously, that companies of all kinds suffer from more errors, more wastage, more write-offs, more theft and fraud – both internal and external – and longer close-off time. auto-Reconciliation reduces all of that.”
Clearly, based on the enormous interest generated at the recent Finance Indaba, there is an enormous problem that can be solved by the MoData auto-Reconciliations in the Cloud platform.
Just what is automated reconciliation in the cloud?
One way of describing it, is as a platform with a matching engine, configurable rules, and workflow that can handle all transactions of any type. It enables you to automate everything – your entire process that you previously had to do manually, from acquisition right through to reviews and approvals, and along the way ’fix all the leaks’ – and the savings are staggering.
Automated reconciliations solutions have been used by several of South Africa’s large insurance companies such as Old Mutual and Momentum, as well as household names such as Bidvest and Multichoice for many years, but previously it was only available on premise.
It is built on a globally recognised product from US company Fiserv, winner of Fortune 500 award for the ‘Most admired company’ for the last five years. MoData provides this solution in the Cloud in South Africa (not Ireland or UAE) utilising the Software as a Service (SaaS) licensing and delivery model to make it more affordable and accessible to companies on the African continent. The platform comes with a free global best practice library and is easy to use, with minimal and free training. auto-Reconciliation in the Cloud eliminates the need for manual reconciliation, where manual reconciliation is a very slow method prone to human error, internal theft, and the manipulation of company data. Companies that decide to use this solution can expect the following benefits:
- 75 percent reduction in write-offs
- 90 percent improvement in reconciliations time
- Saving up to four days’ time on closing financial periods
- 70 percent improvement in process efficiency
- 85 percent elimination of internal fraud
We have also developed the LeveragePoint Calculator that allows South African companies and accounting firms to test with their own data, and predict how much of an improvement they will gain by using the auto-reconciliation solution.
Managing the cash under our noses
Martin also went on to reveal how the MoData solutions have been functioning right under our noses for a number of years without us being aware. “70 percent of the ATMs and cash tellers in South Africa are managed by software we implement and support. Using Predictive Analytics, the software makes sure that the cash in the ATMs does not run out. This is done by the software forecasting which of the banks ATMs, in what locations need to be topped up with cash and at the same time, making sure the ATMs and Branches do not have too much cash available as having excessive amounts of cash spread around the country results in major costs and unnecessary risk.”
The demand for cash can be influenced by factors like weather, religious and public holidays, soccer and rugby games, and of course load-shedding.
Financial crime risk management
To stay ahead of cyber-criminals and fraudsters, MoData also provides a Financial Crime Risk Management (FCRM) solution to some of Africa’s Banks and Insurance Companies. “It is Risk and Rules-based,” explains Martin, “so it is up there with the very latest in international requirements and standards.” As well as being used for AML and Sanctions screening, the FCRM solution also monitors customers’ transactions, analysing them, and issuing fraud alerts or stopping payments in real-time when something untoward or risky arises.