Autorek, Calastone: Simplified Fund Manager Reporting
AutoRek has joined forces with Calastone to offer a streamlined solution for data consolidation and reconciliation. The partnership aims to tackle the longstanding challenges of operational inefficiency and risk management in insurance investment operations.
As insurers grapple with an increasingly complex regulatory landscape and volatile market conditions, the need for accurate, timely financial data has never been more pressing.
The AutoRek-Calastone collaboration promises to transform monthly reconciliation processes into daily operations, potentially freeing up significant assets currently tied to reconciliation cycles.
Alastair MacKenzie, Head of Strategic Partnerships at AutoRek, says: "With a long track record as specialists in reconciliation automation, and having extensive experience of automating fund manager reconciliations for clients in the investment industry, we are excited about this partnership as a massive time and cost saving for our clients".
The solution leverages Calastone's vast global funds network, which processes over US$312bn of investment value monthly across 56 countries and territories. By consolidating statements of holdings and transactions from multiple fund managers and transfer agents into a single, standardised format, the Calastone Reporting solution significantly simplifies the data ingestion process for insurers.
AutoRek's platform then takes this consolidated output and automatically loads it into corresponding reconciliations. This streamlined approach not only reduces the number of data sources and formats that insurers must manage but also simplifies the ongoing maintenance of automated reconciliations.
Tech Advancements
By enabling daily reconciliations, the system allows for much faster identification and resolution of exception items. This rapid processing can have a profound impact on balance sheet liquidity, as assets are no longer tied up for extended periods pending reconciliation.
Ross Fox, Calastone's Head of UK & Europe says: "Digitalisation and automation are crucial tools that enable the asset management industry to reduce costs, innovate and operate more efficiently. By consolidating data from multiple sources into a single, standardised structure, Calastone's technology streamlines the reporting process, enhances operational efficiency, and reduces risk".
The partnership builds on AutoRek's proven track record in the insurance sector. The company has reported significant growth in recent years, with its automated financial controls platform being adopted by a growing number of insurers seeking to enhance their operational efficiency.
Industry Impact
The AutoRek-Calastone partnership comes at a critical time for the insurance industry. Insurers are facing unprecedented challenges, from the ongoing effects of climate change to the economic uncertainties sparked by global events. These factors have heightened the need for robust financial controls and real-time insights into investment portfolios.
Moreover, regulatory pressures continue to mount. In the UK, the introduction of the Consumer Duty by the Financial Conduct Authority has placed additional emphasis on the need for insurers to demonstrate fair value and good outcomes for customers. This regulatory shift has further underscored the importance of accurate, timely financial data.
The new solution promises to address these challenges head-on. By enabling daily reconciliations, insurers can gain a more accurate, up-to-date view of their financial position. This enhanced visibility can support better decision-making, from asset allocation to risk management.
The efficiency gains offered by the AutoRek-Calastone solution could have significant implications for insurers' operational costs. In an industry where margins are often tight, the ability to reduce the time and resources devoted to reconciliation processes could provide a valuable competitive edge.
