It is simply not possible to achieve total reconciliation automation without artificial intelligence (AI), according to a recent paper by Duco. This is because the variety of data challenges firms face cannot be solutioned for on a one-by-one basis and is evidenced by the sheer number of people in capital markets firms performing manual tasks to compensate for “automation gaps” in their tech stack.
Some of these manual tasks can be removed through other technologies, such as no-code systems that allow business-users to build the controls they need rapidly. This avoids the need to go through the bottlenecks around change, or to create manual workarounds for speed.
Many manual tasks can only be automated by harnessing artificial intelligence. They require an intelligent system that can analyze data, learn from past actions, make decisions and take action independently, with humans providing oversight.
“Once you break free of the cycle of outdated technology and practices, you move from a downward spiral of inefficiency, cost and risk, to an upwards one of ever-improving efficiency and accuracy,” writes Duco.