Case Study - US bank transforms ACH and Fed reconciliations with ReconArt

Industry:	Banking
Focus:	ACH, cash account, Fed reconciliations

Client profile: a fast growing bank in the Mid-West USA

A dynamically growing bank, established in the early 2000s, listed on NYSE and serving communities across Kansas, Missouri, Arkansas, and Oklahoma through its 70 branch locations. The bank offers a full range of commercial and consumer banking products and manages assets worth US$5 billion. Recognized for its commitment to entrepreneurship, integrity, and accountability.

Challenges with manual ACH and Fed reconciliations

With rapid growth came the need to optimize operations and strengthen internal controls. Larger account balances meant a higher risk of potential errors or omissions, making operational efficiency and improved visibility a pressing priority. The internally developed spreadsheet tools could no longer handle reconciliation workflows of increasing frequency, complexity, and scale.

Key issues faced:

Time-consuming manual processing of Automated Clearing House (ACH) transactions
Inefficiencies in Federal Reserve reconciliations, critical for compliance and audit controls
Lack of streamlined workflows, which hindered knowledge transfer and team productivity

The bank aimed to automate Federal Reserve reconciliation as a top priority and sought a robust, advanced technology to address these inefficiencies while enhancing audit preparedness and freeing up valuable staff time.

Solution: automated Fed recs and cash accounts reconciliations

ReconArt™ – Total Reconciliation Lifecycle was selected in early 2014. The solution met the Client’s high standards for productivity, reliability, security, and user friendliness. Within several weeks of implementation, the foundational steps – user access, business process mapping, and accounts configuration – were concluded.

The original focus was on automating Federal Reserve reconciliations – a mandatory process, subject to regulatory scrutiny and internal audit requirements. A dedicated ReconArt product specialist worked with the bank on key project deliverables:

Automation of FIRD files import to streamline data processing
Design of import and export templates
Create a complex set of matching rules. The latter amounted to several dozens and were aimed to achieve / exceed the typical minimum matching rate of 80%.

Matched items and approved exceptions were cleared for an automated transfer to the General Ledger.

After automating Fed reconciliations, the Client configured more reconciliation processes in the ReconArt environment. Over 25 internal cash accounts, including zero-variance one-sided DDA accounts, were added to the tool, supporting efficient cash account management.

Results & benefits: enhanced control and efficient reconciliations

Increased Efficiency and Time Savings

The Client saw immediate improvements in its reconciliation processes. Manual tasks like ticking transactions or file preparations were replaced by automated data extraction, enrichment, and matching. Now the reconciliation team is free to focus on researching outstanding items.

Enhanced Control, Transparency, and Audit Preparedness

ReconArt™ provided a comprehensive, end-to-end reconciliation solution. From raw third-party data to GL entries, each step of the process was documented with archived evidence, ensuring complete transparency. The bank no longer relied on individual expertise to demonstrate audit readiness—structured evidence and standardized processes now serve as the foundation of compliance.

Intuitive, User-Friendly Technology

The training offered by ReconArt™ empowered the bank’s team to become self-sufficient with minimal IT intervention. The intuitive interface and straightforward navigation allowed end users to incorporate ReconArt™ seamlessly into their routines.

Our Client continues to explore additional functionalities, including the transformation of intricate matching processes like cash advance automation. The partnership has delivered on its promises—streamlined workflows, enhanced compliance, and time savings—allowing the bank to focus on its core mission.

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