Automated Transaction Reconciliation
Axis Bank’s EFT Switch, Core Banking System and ATMs were recording the transaction details in different formats. Added to this was the fact that the party handling cash management manually recorded details about cash sourcing and replenishment in different ATMs.
The reconciliation process followed by the bank did not offer it complete visibility and could not match the ever-growing reporting requirements. This led them to set up a huge team for data analysis and report generation which was essential to keep track of ATM transactions. Despite a huge team and manual efforts, the operational costs kept escalating, customer queries kept rising and reporting requirements were not fully met.
Axis Bank was looking for entire ATM management and Cash Management from a service provider on total outsourced model. The scope of work included loading and managing cash in the ATMs and answering customer queries and complaints relating to their ATM transactions within the timelines mandated by RBI. The bank had set very tight SLAs for providing business-critical reports and answering customer queries.
MAXIMUS was entrusted with the responsibility of carrying out transaction and cash reconciliation in conformity with the strict deadlines. Logs from different systems had to be collated and analysed on a daily basis for reconciliation and generation of required reports. MAXIMUS concluded that it had to meet the following goals to fulfil the bank’s requirements.
- To streamline information processing relating to ATM transactions and ensure its automation
- To develop quick and robust algorithms that would cover different business scenarios so that data is processed accurately and key information could be viewed, searched and retrieved as and when required
- To generate reports accurately to meet the bank’s requirements, provide complete cash and transaction visibility and help the bank answer customer queries and complaints within the stipulated time
MAXIMUS studied the entire setup and identified the process flows and gaps in information availability. It worked with the bank, CBS vendor and cash management teams and arrived at the standard operating procedures (SOPs) to be executed for information generation and exchange and for taking appropriate follow up actions. The company deployed its automated ATM transaction reconciliation suite, TRACE, to automate the entire reconciliation process. This solution catered to advanced algorithms for performing 3-way and 4-way reconciliation to complete cash and transaction reconciliation on time and generate a host of daily and MIS reports as required by the bank. To meet the specific requirements of the bank, MAXIMUS customized its base package and embedded smart workflows and data exception mechanisms.
- MAXIMUS deployed its reconciliation subject matter expert onsite who was supported by an offsite technical team. They were able to clear the backlogs of unreconciled transactions and cash imbalances within a short time.
- With backlogs cleared, MAXIMUS was able to work with the bank to streamline daily reconciliation operations. With effective use of automation and process optimization, the manpower requirements came down drastically resulting in huge cost savings.
- The advanced transactions search filters and data viewer provided by MAXIMUS helped Axis Bank’s operations team in locating transactions, determining the transaction status across the different systems involved and answering customer queries instantly.
- As reports to answer customer queries were easily available, the bank could now meet the required SLAs, leading to expansion in the number of terminals.
- TRACE was robust and scalable to support the vast amount of input data, processed information and user base.