Case Study - CA Auto Finance UK introduces full modernization of bank reconciliation with ReconArt

Customer profile – a leading auto finance firm in the UK

CA Auto Finance UK belongs to an auto finance group with a century-long history and a global leader in vehicle financing, leasing, insurance, and mobility solutions. As part of the Crédit Agricole Personal Finance & Mobility group and CA Auto Bank, CA Auto Finance operates in 18+ countries and a wide range of sectors. The client’s innovative offerings include flexible financing options, rental solutions, and tailored mobility services, covering everything from electric car sharing to long-term subscriptions. 

Business case and challenges – modernization of manual Excel-based reconciliation

CA Auto Finance UK faced significant challenges in managing their bank statement to GL reconciliation processes. With monthly bank reconciliations involving approximately 250 thousand transactions, the reliance on manual reconciliation methods using Excel spreadsheets and intricate formulas greatly hindered efficiency. 

One major bottleneck were the complexity of bulk matching involving one-to-many and occasionally many-to-many comparisons. Handling diverse transactions across various activities within a single account further compromised the efficiency and timeliness of data verification.

Key pain points included:

• Labor-intensive processes causing inefficiency and delays.
• Backlogs resulting from infrequent transaction matching.
• Increased staff costs due to the manually intensive nature of tasks.
• A need for a cost-effective, scalable reconciliation tool to sustain company growth while boosting financial accuracy.

Solution for streamlined and efficient GL to bank reconciliation

CA Auto Finance UK turned to ReconArt for a robust reconciliation platform capable of meeting the scale and complexity of their operations. After an effective proof of concept and strong customer references, CA Auto Finance UK selected a ReconArt hosted bank reconciliation solution for its flexibility and cost-efficiency, integrating it seamlessly with their existing SAP system.

CA Auto Finance UK maintains an expansive partner eco-system plus diverse payments methods and several bank accounts. ReconArt supports the file formats participating in the Client’s reconciliation out of the box. Data enrichment at import, which previously required an additional step of manual processing, is now performed automatically. Matching transaction by 3+ criteria strengthens the matching accuracy and excludes arbitrary pronouncements.

ReconArt provided the following core functionalities:

• Automation: Streamlined transaction matching, data enrichment, and export processes.
• Flexible import features: Simplified data extraction and configuration for seamless workflows.
• Flexibility: Adaptable import features with custom configurations for accounts, rules, and datasets.
• Improved visibility: A clearer view of outstanding and variance items that has improved audit preparedness significantly.

Since implementing ReconArt, CA Auto Finance UK has achieved significant gains in efficiency, control, and financial accuracy: 

• Enhanced staff efficiency: Automation and streamlining of bank reconciliation reduced manual tasks, freeing staff to focus on higher-value work.
• Improved reconciliation processes: Daily matching eliminated transaction backlogs, ensuring higher process frequency.
• Reduced costs: All reconciliations are now handled centrally within one platform, cutting down operational expenses.
• Streamlined data management: ReconArt enabled the effortless enrichment and integration of data from multiple sources.
• User-friendly features: Configurable accounts, data imports, and rules allowed the team to tailor the platform to their unique needs.

Through ReconArt, FCA also achieved tighter financial controls and improved visibility on critical high-volume accounts, paving the way for streamlined operations and better strategic alignment with business growth goals.

Benefits and results: tighter financial control and cost-efficient bank reconciliation

Since implementing ReconArt, CA Auto Finance UK managed to increase its staff efficiency, eliminate manually-intensive tasks, and ensure systems are capable of handling intensive growth. ReconArt helps improve matching success from the existing 75% to the targeted more than 90%. The Client has also achieved tighter financial controls and long-lasting benefits for its bank reconciliation such as:

• One comprehensive tool: All reconciliations unified under a single, cost-efficient platform.
• Automation first: Matching, data enrichment, and export processes were fully automated.
• Reduced expenses: Labor costs decreased through improved operational efficiency.
• Ease of use: User-configurable accounts, rules, and imports reduced dependency on IT resources.
• Real-time insight: Outstanding and variance items are now monitored closely.
• Scalability for growth: The system is robust enough to support the Client’s ongoing expansion without compromising process integrity.