Reconciliation Data Overload Pushing Four in Five Firms to the Brink

New research from AutoRek finds U.S. financial firms under pressure to modernize data management strategies or risk falling behind as data volumes surge

NEW YORK, Feb. 26, 2025 /PRNewswire/ -- Nearly four in five (79%) financial firms are struggling to manage their reconciliation data volumes, and more than half (57%) still rely on spreadsheets, in-house systems, or outdated legacy software. That's according to new research from AutoRek, a leading software provider to companies in the global financial services sector. As data complexity grows, outdated processes are creating inefficiencies and exposing firms to significant operational risks.

The report commissioned by AutoRek sought the views of 250 senior managers, or above, in asset management, capital market, hedge fund, and fund administration organizations across the country. It shows that firms are expecting a 39% increase in daily volumes over the next two years, putting additional strain on existing systems which are ill-equipped to manage such growth.

"While asset management firms have invested in modernizing their front-end business, very often back-office operational processes have been neglected. Firms are relying on outdated systems and processes, which not only create inefficiencies but also expose them to greater risk," said Jack Niven, VP of North America, AutoRek. "With transactional volumes only set to increase and regulatory demands tightening, it is imperative for firms to invest in modern data infrastructure. Failure to do so will leave them at a competitive disadvantage in an increasingly data-driven and regulatory-intensive environment."

As asset management and capital markets firms look to move beyond legacy systems and manual processes, the report highlights how automation offers a clear solution by providing firms with the tools they need to reduce costs, improve efficiency, increase control, and meet increasingly complex regulatory demands. More than one third of firms (36%) are currently focusing automation plans on their reconciliation and transaction matching processes.

Integrating advanced technologies like artificial intelligence and machine learning will offer huge benefits including increased productivity (36%); increased operational efficiency (36%); a reduction in human errors (29%) and the ability to handle increasing data volumes (28%).

AutoRek's Investment & Capital Markets research report is available for download here.

Notes to editors:

AutoRek is a leading software provider to companies in the global financial services sector.   

An industry leader at the forefront of financial data management, AutoRek's customizable rules driven platform allows firms to automate and streamline the collection, validation and reconciliation of data. This facilitates the necessary transparency to fulfill regulatory obligations and ensure good governance. Efficiency and cost reduction are delivered by eliminating spreadsheets and manual processing, as well as mitigating operational and regulatory risk associated with managing high volumes of data. 

Their clients span the asset management, banking, payments and insurance sectors and include retail, investment and commercial banks. Wealth managers, brokers, market makers, hedge funds, and asset managers. Insurance underwriters, general insurers and brokers.   

Headquartered in Glasgow, with offices in Edinburgh, London and New York, the firm has over 165 employees, with extensive experience in finance, regulation and technology. 

Corporate social responsibility is at the heart of AutoRek's ethos, and it is involved in a number of initiatives to reduce waste, help local communities and create a positive work environment for its employees.  

www.autorek.com 

Research methodology

AutoRek conducted 250 online interviews with senior managers, or above, in asset management and capital markets organizations. Field research was carried out in the U.S. in November 2024.

SOURCE AutoRek