Case Summary
GL Reconciliation is a critical finance controller function that ensures balances in the bank’s General Ledger (GL) align with underlying sub-ledgers and source systems such as deposits, loans, and payments. The client supported 28 products with 2000+ GL accounts, all requiring daily reconciliation to ensure financial integrity, regulatory compliance, audit readiness, and timely financial reporting.
An automated and governance-driven reconciliation approach supported and standardized critical workflows, enabled automation for data sourcing and matching, and cleared significant backlog volumes. This improved process quality to >99%, strengthened reporting readiness, and enhanced operational resilience for a large bank.
Business Challenge
The client’s GL reconciliation function faced multiple operational challenges:
- Heavy reliance on manual reconciliation, resulting in human-induced errors
- Lack of standardization across products and reconciliation processes
- Strict timeline dependency with zero tolerance for inaccuracies
- Growing backlog volumes across multiple products impacting financial reporting and P&L
The Solution
A domain-led transition was executed mitigating any possible risks deploying staggered migration of products and a structured ramp-up approach.
Key solution components included:
- Creation of detailed SOPs to standardize reconciliation steps
- Establishment of strong governance and operational controls
- Dedicated initiatives to clear backlog volumes and remove aged breaks from the database
- Automation for data sourcing and auto-matching of records
- Proposal of an agentic AI approach for break identification and resolution
The solution demonstrates how Digital Operations Transformation and Intelligent Automation can help improve process efficiency, accuracy, and operational resilience in finance operations.
