May 24, 2017

Richard Chapman, Vice President, Business Development and Strategy,

FIS’ Reconciliation Business

Joseph Vesey, Global Pre-sales Manager, FIS’ Reconciliation Business

How Teller, ATM and Bank Vault Reconciliations Can Help Track Physical Cash

Welcome and introductions

Richard Chapman

– Vice President,

Business

Development and

Strategy, FIS’

Reconciliation

Business

Joseph Vesey

– Global Pre-sales

Manager, FIS’

Reconciliation

Business

Visit the Solutions Expo to learn more

MEET WITH THE FIS RECONCILIATION

TEAM ON A ONE-TO-ONE BASIS

Find out more about how FIS’ Core Banking Reconciliation

solution can help your day-to-day operations

Learn about reconciliation, balancing, and financial close

best practices

Explore how you can leverage FIS’ Reconciliation solution

for all your reconciliation needs

Schedule your own personal detailed solution

demonstration

MAKE USE OF OUR SOLUTION

EXPERTS AT:

BOOTH 504A!

Three main drivers behind reconciliation processes

What is reconciliation?

3. Reporting and regulatory compliance2. Accuracy of transactional activity1. Data integrity / system validation

• General ledger (integrated /

Peoplesoft / 3rd party)

• Core banking (IBS / Profile /

Systematics / 3rd party)

• Payment messages (including SWIFT)

• Confirmation messaging (including

SWIFT)

• Transaction lists (payment schemes

incuding Visa, AMEX etc.)

• BCBS248 (Intraday liquidity monitoring)

• Sarbanes Oxley (control and audit

points)

• Financial reporting (accuracy and

completeness)

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TYPICAL RECONCILIATION ECOSYSTEM

The core banking reconciliation landscape

What is reconciliation?

Internal System Integrity

• Core banking specialist

component to general

ledger reconciliations

• Branch and teller

management

reconciliations

• ATM replenishment

reconciliations

Finance

Operations

Treasury

General

Ledger

(E.g.

Peoplesoft,

Integrated

Ledgers, 3rd

Party)

Central

Operations

Financial

Products

Physical Cash

Loans

Mortgages

Deposits

Teller Cash

Vault

ATM Cycles

Cards

Service

Providers

Correspondent

Accounts

FED / ACH

Payment

Schemes (VISA,

MCARD)

External Validation / Regulatory

Compliance

• Daily FED / ACH account

reconciliation

• Daily correspondent account

reconciliation

• Daily payment scheme

reconciliation (Visa, MasterCard,

AMEX)

• SWIFT messages

Regulatory Compliance

• Monthly GL Recons

• Suspense / Clearing

Recons

Other (e.g. EJs,

Switches)

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General reconciliation challenges

Automation isn’t as simple as it sounds …

1. Data capture

Data from multiple internal

systems

External data from multiple

parties

Inconsistent format (XML,

CSV, SWIFT)

2. Data quality

Lack of common references

and unique identifiers

Data reported at summary not

transactional level

3. Rules complexity

Variable tolerances

Rules often require data

aggregation

Multi-way matching between

3 or more sources

4. Exception mgmt

Excel or manual

documentation is inconsistent

and not transparent

Slow processes cause write-

offs / penalties

Manual data massaging

Low levels of automation

Low levels of auto-matching

Manual investigation

5. Audit and control

Activity should be controlled

and logged

Audit trails of activity should

be captured

Paper based approach

common

Poor control & transparency

RISK AND COSTIntroduces

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Typical processes

“[compared to other

functions] reconciliation

has the highest number

of FTEs"CEB TowerGroup: Boosting Reconciliation Technology ROI Webinar

Cash reconciliation challenges

Three physical cash reconciliation affecting operations today

Variances are determined

when the teller balances their

drawer. Variances are typically

caused by human error

through miss keying, running

transactions for the wrong

amount, giving customers the

wrong amount of money and

similar scenarios.

However, these variances can

potentially be linked to internal

fraud and therefore require

investigation to identify the

root cause and can lead to

disciplinary actions.

ATM Replenishments VaultsTeller Cash

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There is a need to monitor

and maintain vault limits,

manage cash orders via

FED or 3rd party cash

services providers, as

well as processing and

tracking merchant

deposits and processing

entries for offsite ATMs.

“In response to the question

of what is the most critical

change organizations need to

make to their ATM network,

reducing operational costs

was at the top of the list.”

ATM Marketing – ATM Software Trends and Analysis

“According to Shazam, a worldwide

increase in the demand for cash is

predicted to boost the global

installed ATM base skyward over

the next several years. Estimates

predict an installed base as high as

3.9 million units by 2017.”

1. ATM reconciliations

Not just replenishments!

Debit/credit ATM Switch network Bank

Payment association network

Cardholder

• Hardware failures

• Communication failures

• Multiple systems and files

• Transaction issues

• Failed disbursements

• Retractions

• CDMs

• Cash in transit/replenishment

• Timing issues

• Different ATM cycles

• Onsite and offsite ATMs

• Multiple machine types

‒ ATMs/CDMs

• 3rd party net settlement

• Multiple 3rd parties

• Multiple systems and files

• Cut-off/timing Issues

• Chargebacks and disputes

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FIS’ reconciliation solution: a short demonstration

2. Teller cash reconciliations

Over/short calculations and resolution

Customer Teller TellerInsight

Item Processing

General Ledger

• Teller balances drawer

• Validation performed between

TellerInsight and GL

• Variances (over/short) identified

• Produce branch reporting

identifying variances

• Escalation workflow

• Day-by-day trending and

tracking

• Cash deposits/withdrawals

• Checks

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12

FIS’ reconciliation solution: a short demonstration

3. Vault and cash reconciliations

Keeping track and vault movements

ATM

Armoured Car

Cash Vaults

FED or

Cash Services Provider

Branch

General Ledger

• Cash vault

• Inbound/outbound cash ordering

• Online orders

• Merchant deposits

• Offsite ATMs

• Ensure cash vault’s daily ending

balances against GL

• Ordered = received cash orders

• ATM balancing

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14

FIS’ reconciliation solution: a short demonstration

A review of the available service options

FIS can help: FIS’ Core Banking Reconciliation

FIS can provide a complete end to end reconciliation

service:

– Capture of data sources and automated import and

aggregation

– Automated matching for identification of exceptions /

breaking items

– Automated account proofing, submission and approvals

– Full web access and simple deployment

– Management of exceptions and posting of resolution to

core banking solutions

– Complete end to end exception management, tracking

and reporting

Example(s)

– FISPSS full outsourcing in India for ATM and cards

– VBO complete reconciliation outsourcing in USA

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Typical statistics in support of sophisticated reconciliation automation

Moving to an automated reconciliation model

Reduction in total cost

from Excel based

reconciliation

processes

Reduction in total cost

for partially automated

reconciliation

processes

Months is the typical

average return on

investment

<1270% 25%

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Richard Chapman: richard.chapman@fisglobal.com

Joseph Vesey: joseph.vesey@fisglobal.com