Accelerate Financial Reporting while eliminating transactional errors.
A large owner/manager of asset backed securities with publicly held majority investors.
Two processes were identified as extending the quarterly close timeline: cash reporting, and valuation of the thousands of asset backed securities. The valuation of the securities required up to date information on the underlying mortgages, including interest received, delinquency, and payoffs. This information came from the manager of the securities and was reported electronically via PDF. Transferring the data to the asset backed securities ledger was a manual business process prone to errors, lacking visibility and controls. Due to the manual process, data entry lagged by 60 to 90 days, so that the data for the quarterly close, was 60 to 90 days old.
We documented and analyzed the process of obtaining and inputting the securities data into the valuation model. A team of developers then worked with PDF “scraping” software to automate the data extraction process, and then electronically input the data into the valuation model. Exception reporting was used to identify missing data, and data errors.
Automating the data extraction and entry process enabled the valuation process to be completed within 5 to 7 days of quarter end, using the most current data from the securities manager. Automating the exception and error reporting allowed for faster identification of missing data and data anomalies, which could be corrected prior to the valuation process.
Headcount to extract the required data from the securities, and manually input into the valuation model, was reduced from approximately 20 staff, to only 5 staff.