Case Study - MiFinity automates payments reconciliation and financial reporting with ReconArt

MiFinity is an innovative financial services and payment solution provider based in Ireland. It allows users to open an account on the platform, link their preferred payment channel for deposit and withdrawal purposes, and shop online easily, receive funds, or send money globally.

MiFinity eWallet delivers a flexible and modern payment solution with its 17 currencies and 75+ integrated payment methods including traditional debit / credit cards (Visa, MasterCard, UnionPay, regional acquirers), or cryptocurrency options (Thether, Ethereum, Bitcoin, Lightcoin). MiFinity’ is accepted in 650+ websites and unlocks carefree consumer experience with super-low fees.

Existing process and challenges: replacing Excel for complex 3-way reconciliations and daily reporting

Typically, for cross border payment and money transfer businesses, keeping control over cash position at any time is a central issue for the management. As the service was gaining momentum and growth pains became evident, treasury and accounting controller teams were quick to realize the need for efficiency enhancements.

MiFinity acts as an intermediary between payment processors across hundreds of countries and territories. The platform processes the traffic initiated by the user in a series of transaction events and settles the amounts with downstream systems on the customer’s behalf. Large transaction volumes and partner integrations require daily reconciliation routine of manual reporting on the cash position.

The existing bank reconciliation process involved transaction matching and account reconciliation in 12 distinct processes, primarily conducted in spreadsheets. Despite the team’s advanced Excel skills, time-consuming and error-prone manual operation persisted. Daily reconciliation was a necessity and could not be accomplished without all-encompassing automation.

Acting as an intermediary means converging multiple data sources for each reconciliation account and comparing balances and individual transaction across 3+ domains. Fractured processes managed in disparate systems only added to the process complexity. Mifinity could not afford to compromise their quality of service with rudimentary tools.

The client was searching for the perfect solution fit and was determined to carry through this key transformation project as soon as possible.

The solution: enterprise-class transaction matching and account reconciliation software

MiFinity approached ReconArt in end-2022 for a comprehensive account reconciliation solution that would replace inefficient manual operations with an enterprise class tool for end-to-end data matching automation. In that respect, the client outlined several key requirements:

• Integration capabilities with multiple external data sources; integration with their internal accounting system and ERP (Xero)
• Strong matching capabilities were complex 3-way matches are completed in an automated environment
• Capabilities to prepare custom exports from the reconciliation system to feed downstream reporting tools
• A solution hosted in the cloud

ReconArt, with its flexible integration capabilities, now ingests .csv files automatically fetched from a dozen of partner back offices into a dedicated SFTP location. Data transfer automation and the established connection between internal and external sources makes ReconArt a critical component of the accounting infrastructure of the client. The client now handles data feeds with confidence, despite their innate inhomogeneity and the prospects to grow in numbers over time.

ReconArt stands out with its rich experience in bank, card, and payments reconciliation for PSPs, fintech and money remittance businesses, and, above all, its robust matching capabilities for large-scale, complex transaction matching. The solution delivers consistent matching results based on user configurable match rules, which can map any business logic and account reconciliation workflow.

ReconArt also provides features for streamlined exception management. The solution can read the payment processor statements and discern fees, net credits and debits. MiFinity is now able to demonstrate a granular audit trail with the full transaction lifecycle spanning multiple systems.

Instead of manually pulling extensive cash position spreadsheets day after day, now ReconArt does the reporting on fees and payouts. Data exports are scheduled with preconfigured structure of the export template and automated trigger of report generation.

Results and benefits: improved visibility on the cash position, efficiency and speed

Mifinity are empowered to fulfil their objectives for fast, audit-proof, streamlined, fully automated reconciliations that would speed up their critical period-end accounting operations and provide near real-time visibility over changes in the cash position. ReconArt has improved the team productivity and the compliance readiness. Above all, ReconArt aligns with the client’s goal to gear up for rapid growth and agility to expand into new business lines.