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Reconciliation Technology: Advancing Beyond Cash and Securities Reconciliation

Product Type: Market Research Report
Published by: TowerGroup
Published: March 2006
Product Code: R301-806
Description
Cash and securities reconciliation, the process of matching internal balances, transactions, andholdings with the external records of brokers and custodians has traditionally been the deepest ofback-office functions for investment management firms. But the modern capabilities of third-partysolutions are enabling reconciliation technology to emerge as the investment managementindustry's "problem solver." Reconciliation software is moving out of the back office and into thespotlight as firms use reconciliation systems not only to support reconciling cash and securities butalso to support reconciling internal subsystems, matching orders and confirmations, and comparingsecurity identifiers, among other things.

This TowerGroup Research Note is a companion to V46:22M, Reviewing the Players in theReconciliation Software Market, which provides a detailed analysis of the vendors competing in thismarketplace.
Table of Contents
TowerGroup Take-Aways




Report Coverage




Vision




Background


Exhibit 1: Modern Reconciliation System Process Flow (2006)




Step 1: Data Capture

Step 2: Data Normalization

Steps 3 and 4: Exception Management and Data Archival




Factors Driving the Interest in Reconciliation Technology

Reducing Operational Risk and Costs

Improving Operational Efficiency

Improving Regulatory Compliance

Moving Reconciliation from Post-settlement to Near Real Time




Primary Challenges of Automated Reconciliation

Complex Internal System Architecture

Quality and Availability of Data

Different Data Standards

The Growing Interest in Outsourcing Reconciliation


Exhibit 2: Service Levels of Outsourced Reconciliation (2006)




Should Reconciliation Be Centralized?




Market Size


Exhibit 3: Global Adoption of Reconciliation Vendors (2006)

Exhibit 4: Global Spending on Integrated Reconciliation and Exception Management Technology (2005-09P)

Exhibit 5: Leading Vendors of Reconciliation Technology (2006)




Summary
Ordering and More Information
Price and Delivery Options


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