Financial organizations continually strive for a straight-through processing (STP) model, where the data is entered into a single system once, and then sent via interface to multiple downstream systems within the investment architecture.
For mutual fund accounting, standard operating procedures for fund accountants are to run reports and compare the results to another report. This is a tedious, manual and time consuming model that is not sustainable for firms trying to do more with less. Firms must replace these manual operations with systematic processes in order to remain competitive. Automation not only reduces the time spent reconciling data, but it also lessens the operational risk associated with humans performing tasks that could otherwise be automated. Firms simply cannot afford to have people reviewing all potential exceptions, which may never be exceptions, and must rely on systems to highlight potential problems based on rules and tolerances that are applied to a transaction, calculation, ledger balance, NAV, or yield impact.