VECTOR Reconcilement Solution
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It improves the reconciliation process on an enterprise-wide basis.
Reconcilement was always labor-intensive - until the VECTOR Reconcilement Solution automated the process. This solution can simplify the reconcilement of your internal and loan accounts, as well as those with the Federal Reserve Bank and due-from banks. The fact is, it's applicable to every reconcilement area within your enterprise. And most banks who use it report a 30-50% reduction in overall reconcilement costs.
VECTOR Reconcilement can also play an important role in your operational risk reduction strategy. It uses automated matching rules to match most debits and credits automatically - leaving only exception items to be dealt with.
Surprising results
We looked at a large bank and estimated the financial impact the VECTOR Reconcilement Solution might have on it. After analyzing all operations which entail reconcilement - i.e., retail loans, returns, safe deposit payments - our estimate is for a reduction in daily manpower from 588 hours to just 88 hours!
Productivity up
VECTOR Reconcilement's browser-based presentation improves productivity by decreasing manual labor - while it increases effective management and control over the entire reconcilement process. Enhanced features like online research and reporting also help push productivity up.
Lost earnings down
Do you believe that the sooner you are aware of a problem, the better your chance of solving it? We do. Through its scrutiny of unmatched items, open items and item aging, the VECTOR Reconcilement Solution identifies, tracks and controls charge-backs and charge-offs. You'll be aware of discrepancies early in the process, and be able to resolve problems earlier. Thus, you'll be able to limit charge-offs and lower the threat of lost earnings.
Be a law-abiding bank
Does your institution reconcile every single account it maintains, even internal ones? Many banks don't, but to ensure compliance with the Sarbanes-Oxley Act of 2002, they should. Section 404 of this law gives institutions the responsibility for "establishing and maintaining an adequate internal control structure and procedures for financial reporting." For many banks, this means they must implement a program of reconcilement, regular audits, and quality control procedures for internal accounts.
The VECTOR Reconcilement Solution can help ensure your institution's compliance with Sarbanes-Oxley. It will "funnel" all relevant data on your accounts into the system; handle the reconcilement of every account you maintain; and by automating the process, it can help you achieve compliance without increasing personnel requirements.
How it works
The VECTOR Reconcilement Solution is fast and easy to use. It consists of automated interfaces to your internal applications that capture critical information needed for reconcilement and makes it readily available at any point in the process. Additional information is received, transmitted or entered online. Once this input is captured, the system begins the automatic matching process.
VECTOR Reconcilement automatically tracks and "ages" open items. An inventory of unmatched items is created that are available online until they are reconciled and have been closed for a bank-determined amount of time. The Solution maintains a complete list of such items, highlights those that have been open for an extended period, and houses extensive information on each item. For instance, an online search can be conducted for specific dollar amounts. And you'll be able to customize the Solution's criteria to automatically find identical or partial matches, in order to meet your specific requirements.
VECTOR Reconcilement includes interfaces to most or all bank functions entailing reconcilement. Input interfaces include those to internal areas such as General Ledger and DDA, the Federal Reserve, and "due from" banks. Output interfaces encompass pass-through entries and General Ledger entries, as well as interfaces to other VECTOR Solutions.
The all around the bank solution
The VECTOR Reconcilement Solution can be applied to operations in virtually every area of your enterprise, including cash in transit, wire transfers, General Ledger systems suspense, IRAs, CDs and savings accounts.
The Solution improves the check adjustments process, handling incoming cash letters from the Fed, the automated identification of exceptions, the separation of incoming items, teller cash in/cash out, and reconcilement between item processing, EDP (teller system) and branches.
VECTOR Reconcilement can also be used to reconcile the origination of mortgage, commercial and installment loans; for electronic banking (ATMs in process and ATM exceptions); and for such diverse operations as redeemed food stamps, collections and recovery, accounts payable and PC home banking.
An idea that floats
With features such as missing offset entry reports, VECTOR Reconcilement can be a key component in your efforts to control excess float. With the Solution in place, you¹ll receive fast notification of lost offsets (such as missing cash letters), partial availability (showing you¹re receiving less availability than you expected), delayed availability, and the aging of suspense items.
Get to the root of the issue
The VECTOR Reconcilement Solution includes research functions that help you find and solve the cause of unreconciled items. The Solution initiates research that will determine an exact match or range based on amount, balance, item date or book date.
Insightful reporting
VECTOR Reconcilement generates a variety of reports that will keep you informed of the status of your overall reconcilement process. Standard reports, both automatic and audit trail, are issued, as well as reports by request (at the bank, department or account level), that can be customized by frequency and format.
These "by request" reports can include statistical information and aging reports. Criteria can be determined at the account level, including such information as names of accounts, number of accounts and dollars of accounts.
Make the simple choice
It automates the reconcilement process in every area of your enterprise. Helps ensure compliance with federal law. Improves productivity. Shields you from lost earnings. But the most important reason to choose the VECTOR Reconcilement Solution is the fact that it simplifies what is now a very complex, laborious process.
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