In the financial services sector, reconciliation processes are often one of the most overlooked opportunities for driving efficiency and strategic value. As discussed during AutoRek’s recent NICSA webinar, many firms still operate in a landscape defined by complexity, fragmentation, and legacy systems. This is a situation that can significantly impact operational performance if not addressed properly.
Murray Campbell, Principal Product Manager at AutoRek, joined a panel of industry experts to unpack the reconciliation challenges firms face today and, more importantly, how to transform those hurdles into opportunities for long-term growth and value creation.
The Complex Reconciliation Landscape
Financial firms, particularly those with a long history or those that have undergone mergers and acquisitions, often find themselves grappling with fragmented systems and siloed data. This complexity is only exacerbated by the reliance on manual or semi-manual processes. “There’s such a broad range of those challenges around reconciliations, which really makes it quite a complex landscape for firms,” Campbell noted. “That can often be exacerbated by working in a manual environment or where there’s part automation and still part reliance on manual processes.”
As systems are integrated and data is inherited, many firms layer manual workarounds on top of existing processes. These patchwork solutions are particularly common in reconciliation operations, where partial automation exists but doesn’t cover the full end-to-end process.
From Fragmentation to Consolidation
A key theme of the discussion was the need to move beyond these fragmented processes. Rather than continuing with inefficient and outdated setups, firms should take a holistic view across all reconciliation workflows. “The value starts to come for firms when they can instead start to take a holistic view across their processes and try to consolidate those processes together,” said Campbell. “Understand what all the data sources are that are needed within their reconciliations and try to move away from those fragmented processes.”
By consolidating reconciliation activities onto a single platform, firms gain enhanced control, standardization, and visibility—laying the foundation for scalable growth.
The Power of Automation and Control
Transitioning away from spreadsheets and manual processes to a fully automated solution allows firms to reduce operational risk, boost efficiency, and regain control. “You’re using a platform that will ingest your data sources, taking any kind of manual sourcing and manipulation of that data out of the hands of staff,” Campbell explained. “Removing those manual setup processes… having all of that fully audited, fully permission-controlled within a system really starts to bring value to an organization.”
Automated reconciliation platforms not only streamline daily operations but also introduce systematic checks and controls, which build trust in the accuracy and completeness of data. These capabilities empower teams to identify issues early and act decisively.
Data-Driven Value and Reporting
A reconciled dataset shouldn’t be the end goal, it should be the launchpad for wider business value. When reconciliation data is centralized within an automated system, it becomes a rich source of insight for regulatory reporting, stakeholder communication, and strategic planning “Reconciliation of that data shouldn’t be the end of the process. It should be part of the journey for onwards reporting of that data,” said Campbell. “If it’s feeding into regulatory returns—brilliant. If it’s reporting across various stakeholders in the business, there’s a lot of value there.”
Scalability Without the Stress
One of the major benefits of a modern reconciliation solution is the confidence it gives firms that their processes can scale with the business. “It’s about having that confidence and the comfort that your processes will happily scale with you as your business continues to grow,” Campbell added. “That’s where you start to see the value—no longer do you have concerns about how your processes will handle increasing volumes and new product lines.”
Looking forward, the integration of AI into reconciliation tools offers even greater potential—automating anomaly detection, identifying root causes, and enabling predictive insights. But as Campbell emphasized, the goal of AI is not to replace humans; it’s to empower professionals with the tools they need to focus on high-value work.
Reconciliation as a Strategic Asset
Firms that view reconciliation as more than just a back-office necessity stand to gain the most. By consolidating systems, embracing automation, and enabling data-driven decision-making, reconciliation becomes a strategic asset that drives operational efficiency, regulatory compliance, and business growth.