Source: Aurum Solutions
Octopus Investments (‘Octopus’) has deployed GroupIT from Aurum Solutions to manage highly complex two- and three-way reconciliations for cash, client money and stocks.
The solution is also used for data cleansing and forecasting. GroupIT has delivered time savings, cost reductions, and improved management and control over risk.
Octopus evaluated a number of reconciliation systems, as Keith Clarke, Reconciliations Analyst at Octopus explains: “We talked to large software companies as well as some smaller suppliers, including Aurum Solutions. One of the advantages of GroupIT is that the advanced reconciliation functionality was a fraction of the cost of other high-end systems. We also saw that the inherent flexibility meant that it could be tailored to our specific requirements.”
Peter Orsi, Head of Operations at Octopus added: “We have seen a quick return on our investment with GroupIT. A major benefit is the time saved. Even though we have increased the number of bank accounts and transactions that we process, we can complete all the daily reconciliations before 12pm most days. Without GroupIT this process would easily take at least one person an entire day to complete.”
On a daily basis, Octopus uses GroupIT to reconcile up to 10,000 or more cash transactions related to client money, matching customer information such as cash advances or stock balances from its portfolio system Exact with bank statements from HSBC. GroupIT produces an exception report which is used to resolve any unmatched items.
Octopus also performs cash reconciliations against its broker State Street. GroupIT matches its cash transactions against Exact and then custody cash transactions are matched to Exact. Items in Exact will only be reconciled once it has been matched to both State Street sources thus providing more robust cash positions for the fund manager.
This new system has helped Keith to manage a complex process more effectively and efficiently. “GroupIT allowed us to move from a manual, two-way cash reconciliation with our broker to an automated three-way reconciliation which allows our fund managers to know precisely how much cash they have available for trading. We could never have done this before due to restraints on time and resourcing, and the complexity involved. We know that our reconciliation requirements are very complex. However, GroupIT enables us to manage and control this vital financial activity more effectively.”