The Challenge
Our client, a prominent financial institution, was grappling with significant challenges in maintaining regulatory capital due to daily fluctuations in balances due to transaction volumes. These fluctuations often result in breaches of daily regulatory capital requirements, posing a serious threat to the financial department’s efficiency and regulatory compliance. They also had to manage daily regulatory capital for their international offices.
The current manual process of calculating daily capital is cumbersome, resource-intensive, and error-prone, exacerbating the situation. Compounding these challenges is the imperative for reports to be available before business hours, necessitating a time-sensitive and accurate process.
This manual process involves a multitude of steps, including retrieving data from various sources such as banks, accounting systems, adjustments data, daily transactions, and integrating them. However, the generated reports suffer from data quality issues, including incompleteness, incorrect values, and delays in availability, further impeding operational efficiency and decision-making capabilities.
The lack of automation not only increases operational overheads but also restricts scalability, making it increasingly difficult to manage growing data volumes effectively. As a result, there is an urgent need to streamline and automate this entire process to reduce errors, enhance data accuracy, and improve overall productivity for our client.
This automation initiative aims to achieve the following objectives:
- Significantly reduce the time and resources expended on manual calculations and report generation.
- Enhance data accuracy, completeness, and reliability to ensure regulatory compliance.
- Improve scalability to efficiently handle expanding data volumes.
- Provide timely and actionable reports to support informed decision-making processes.
The stakeholders impacted by these challenges and the proposed solution include our client’s financial department, regulatory compliance teams, IT departments, and senior management. Addressing legal and compliance risks associated with manual processes is paramount to ensure regulatory adherence.
Success criteria for this automation initiative encompass reduced processing time, enhanced data accuracy rates, cost savings, regulatory compliance, and improved user satisfaction. These metrics will serve as benchmarks to evaluate the effectiveness and tangible impact of the automation solution for our client.
The Solution
Our flagship process automation platform, EPIC (Enterprise Platform for Integrated Compliance), has been strategically deployed and meticulously configured to specifically address the intricate challenges faced by our client in maintaining regulatory capital.
EPIC effortlessly retrieves transactional data from files sourced directly from bank portals. These files are obtained either through user downloads or automated mechanisms. Within these files lie critical transactional details, capturing essential financial movements vital for regulatory adherence. Moreover, EPIC seamlessly integrates with PeopleSoft to acquire trial balance and management fees data, thereby fortifying the accuracy and completeness of reporting. Additionally, EPIC efficiently gathers adjustments data and consolidates bank activity information from Blackline, fostering a comprehensive approach to data aggregation.
Through carefully crafted mappings, EPIC enriches and harmonizes disparate datasets, laying the foundation for accurate and reliable reporting. Following data aggregation, EPIC conducts rigorous reconciliations to validate the integrity of processed information, safeguarding against potential errors. The culmination of these processes results in the automated generation of daily capital reports, complete with comparative analysis against prior day numbers, providing invaluable insights for decision-making.
Furthermore, EPIC seamlessly integrates with task management systems like Wrike, facilitating streamlined workflow management and enhancing user collaboration and accountability.
The Result
This strategic deployment and configuration of EPIC have garnered acclaim from users, appreciating its efficiency, accuracy, and pivotal role in optimizing operational workflows and regulatory compliance efforts.
Outcomes & Benefits
The key benefits of automating daily regulatory capital reporting are:
- Cut report turnaround by 80%! Review reports in just 5 minutes, eliminating the need for a 45-minute prep slog with EPIC.
- Skip the manual email shuffle! EPIC’s automated reports with integrated workflow approvals streamline your review process.
- Efficient Data Retrieval: Automatically fetch data from diverse sources, streamlining the data collection process and reducing manual effort.
- Integrated Data Merging: Seamlessly merge data from different sources into a master dataset, ensuring comprehensive and unified reporting capabilities.
- Precision in Data Mapping: Maintain and apply mappings to source data accurately, enhancing data integrity and consistency throughout the reporting process.
- Automated Reconciliation: Utilize automated reconciliation processes within EPIC to identify and reconcile discrepancies, improving data accuracy and reliability.
- Task Management Integration: Generate tasks in platforms like Wrike to provide users with easy access to reports for review and approval, enhancing collaboration and workflow efficiency.
- Centralized Rule Management: Maintain limits, thresholds, and compliance rules for different regions within a single system, ensuring regulatory adherence and simplifying reporting across multiple jurisdictions.
- Enhanced Reporting: Generate reports with all details appropriately segregated for better readability and comprehension, facilitating informed decision-making.
- Time and Cost Savings: Automate repetitive tasks and streamline processes, leading to significant time savings and reduced operational costs for the organization.
- Scalability and Adaptability: EPIC’s scalable architecture allows for seamless adaptation to changing regulatory requirements and business needs, ensuring long-term viability and flexibility.
