Bankers’ Bank Northeast (BBN), based in Glastonbury, CT, was founded in 1998 and is one of 17 bankers’ banks nationally. The Bank offers a variety of correspondent services to community financial institutions throughout the six New England states, New York and New Jersey. BBN is committed to offering products and services that enhance the customer experience and improves profitability.
BBN’s strategic plan included the implementation of a bank-wide reconciliation platform to automate daily, monthly and quarterly reconciliations that were being manually processed. Primarily the Bank wanted to automate matching of the ever-growing volume of transactions from its principal Federal Reserve account. This included all wire transfers for the Banks’ customer base. BBN also wanted to initially automate a suspense account through which individual ACH transactions for all respondents flowed. Using the manual method, when errors did occur it was a time and resource consuming process that could take the bank days to research and resolve. Addressing these challenges would improve efficiency and reduce associated costs thereby helping drive ever greater customer satisfaction – clear goals of BBN for its customers.
BNN was introduced to the concepts of automating reconciliations at the annual Bankers’ Bank Operations Conference 2013 in New Orleans, Louisiana; hosted that year by First National Bankers’ Bank, headquartered in Baton Rouge, Louisiana.
After learning the benefits of automation and control, BBN initiated a due diligence exercise to identify an automated reconciliation platform that would achieve the following:
- Deal quickly with daily reconciliations thru process automation
- Improve the efficiency of high cost, valuable resources
- Early Identification of operational risk situations
- Standardize reconciliation activities within an integrated platform
- Have the potential to turn the new platform into a future revenue-generating service for their clients
The ReconArt™ platform, already proven in many other financial institutions, was selected as the best solution to meets all the Bank’s needs.
Since implementation, ReconArt™ has delivered multiple benefits to BBN. These include:
- Automation of key reconciliations previously handled manually in Excel
- Immediate identification of exceptions and their related risk and a time reduction to correct errors
- Increased visibility of the reconciliation lifecycle and ease of management oversight
- Significant time savings by automating a number of suspense accounts running on the ReconArt™ system.
BBN has implemented 16 reconciliations on ReconArt™ with plans to identify additional target areas for automation and control. Furthermore, BBN has shared its successes with their clients that are evaluating similar technology solutions automate processes and improve efficiencies.
Charlotte Hansen, SVP & CFO, perfectly summarizes the general verdict: “ReconArt’s reputation for service and technology caught the attention of BBN as we searched to automate internal processes, expand reporting capabilities and enhance efficiencies. In our recent core conversion, there were transactions posting in the wrong direction. These were easily researched and identified with ReconArt™, with our previous manual process this could potentially have taken a couple of days. Transitioning to Recon Art has proven to be the right choice for BBN.”