Reconciliation Outsourcing – How Empaxis Helps RIAs Save Time and Money

July 23, 2020 - Stephen Van de Wetering

Reconciliation outsourcing lets RIAs focus on what they do best, and Empaxis plays an important role in helping firms achieve their objectives. We’ll explain how we do it.

Time and Money Balance

The benefits of outsourcing are well-known, and it is no wonder outsourcing is top of mind for a majority of asset managers.

Whether you’re an asset manager or wealth manager, a hedge fund or family office, you too can reap the benefits.

At Empaxis, we have been reconciling accounts for over 16 years. Suffice to say, we’ve gotten quite good at what we do, and our clients can attest to it.

So, how exactly are we able to deliver?

Reconciliation Outsourcing – How Empaxis Makes It Work

Years of Reconciliation Reporting Experience

If you are in the United States, you may have seen the Farmers Insurance commercials, where they say, “We know a thing or two because we’ve seen a thing or two.”

That statement perfectly sums up Empaxis and our experience with reconciliation reporting.

Reconciling thousands of portfolios daily over the course of 16 years, we have seen it all. Our executive team, including myself, has a background in investment operations, and we’ve done reconciliation firsthand, both at Empaxis and at previous organizations.

Furthermore, our Empaxis recon reporting team comes in with years of experience, and collectively we have that much more brainpower.

We’ve dealt with all kinds of irregularities and exceptions related to securities, pricing, transactions, and corporate actions, and from those situations, we are that much more knowledgeable on the subject.

Nonstop Innovation and Process Improvements

When you do the work as long as we have, you find better ways to get things done.

At Empaxis, we’ve leveraged technology to ensure greater reporting accuracy and increase turnaround times.

We have built bots that handle the more manual and routine functions of reconciliation, which minimizes the risk for error. In turn, this allows our team to focus on areas where human input and analytical thinking skills are most valued.

What’s more, our Quality Assurance (QA) system has helped us do what the name implies, assure quality.

What once started as a checklist of points to manually verify, our QA processes has grown far more sophisticated.

Our QA system is technology-driven, catching irregularities for us, like missing or invalid data points. Our team members are then notified where issues are and how to resolve them.

An interesting observation came from Andrew, our Head of Marketing, who started at Empaxis as an intern in 2012. At the time, he learned reconciliation reporting, thus seeing our processes up-close.

When he rejoined the firm two years later, he returned to a similar role, and he was surprised at how much things improved. He pointed out how daily reconciliation for the same client he worked on once took 3 hours, and now it takes less than 90 minutes.

With reconciliation outsourcing, you can have a team that not only does the work, but they actively find ways to work more efficiently, as we have demonstrated.

TAMP1

As part of our improvements in technology, we developed a cloud-based, turnkey asset management platform, TAMP1.

Many of our clients have been looking to move away from legacy technology, and by developing TAMP1, they can have a modern RIA platform, and Empaxis is alongside them, running the reconciliation and performance reports as before.

Solid Documentation

When you or other team members are expected to perform a task, the best thing to do is create process documentation.

That’s exactly what we have done. Our documentation is updated regularly, and our team performs reconciliation with clarity and confidence.

Documentation:

Plus, employees may come and go, they get moved to different responsibilities within the organization, or they’re out sick or on vacation. Whatever the case may be, when another team member steps in, you need good documentation in place to ensure continuity. That’s what we’ve done.

Leveraging Global Synergies

When we started Empaxis, our goal has been to perform reconciliation the very moment data is made available from the custodian. We want our clients to receive their daily reports at the earliest time possible.

But depending on the time zone in the US, it means working anywhere between midnight and 6AM. A graveyard shift is ripe for turnover, leading to lower levels of continuity and service for our clients.

But in India, where are our operations facility is located, it’s the middle of the afternoon when custodial data is ready. That’s a more reliable time to get the work done, as opposed to 3AM.

Combined with cost advantages and highly educated, English-speaking, talent in the fields of business, finance, accounting, and technology, Empaxis has put together a skilled and dedicated team to serve our clients. What’s more, we cross-train our staff to build up a bench, so that no matter what happens, there is always an Empaxis team member you can depend on.

We Are Here to Help

To recap, through reconciliation outsourcing, Empaxis helps RIAs save time and money.

We save RIAs by time by freeing them up to focus on higher-value tasks where human input is most needed. What’s more, once we take on the work, Empaxis finds better and faster ways to get it done, leveraging technology, use of documentation, and having talent available in the wee hours of the night in the US.

Empaxis has the resources and expertise to drive efficiencies in a way that an RIA performing the work internally couldn’t. We not only find better and faster ways to reconcile portfolios, but we do so in a cost-effective manner for you.

With that said, it’s our pleasure to assist. Schedule a free consultation.