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Zambia National Commercial Bank Plc, commonly referred to by the name “Zanaco”, is a commercial bank that serves retail customers, large corporations, agri-business and public sector clients in Zambia. With the aid of Rabobank, a Dutch multinational banking and financial services company, providing management services and technical assistance, Zanaco is now one of the most solidly capitalised banks in Zambia. Zambia National Commercial Bank Plc was founded in 1969 and is headquartered in Lusaka, Zambia.

Techurate Systems Pvt. Ltd. provides robust technology solutions for banks and financial institutions that deliver greater agility, measurable business value, and improve overall customer experience. They offer products in the areas of internet banking, mobile banking, digital payments, analytics, reconciliation, and financial literacy. Techurate Systems Private was incorporated on 16 June 2015, and is headquartered in Bengaluru, India.

Prior to the implementation, Zanaco had manual processes in place for reconciliation, and was dedicating a significant amount of time and resources for the same. Manual reconciliation processes are time-consuming, require manual entry, are prone to errors resulting in low accuracy, require human intervention to resolve errors, require manual generation of reports or transaction status checks, and lack of any real time visibility that can help organizations monitor and resolve issues.

Hence, Zanaco began looking for a new system that could address the above pain points, and selected Techurate Systems’ Recons solution. Particularly, Zanaco selected Techurate as they had an in-depth understanding of Oracle Flexcube, which is Zanaco’s core banking solution.

The objective of this implementation was to automate the reconciliation processes at Zanaco across delivery channels, reduce operational Cost and manage risks. Automation of reconciliation processes would simplify the complexity of reconciling transactions between various files such as Switch, host, ATM EJ Files, GL Reports, Loan Reports, Interest Accounts, Nostro Accounts, as well as reduce the chances of errors related to manual data processing by deploying auto matching and straight through processing.

The project began with 3 employees from the bank’s side – a business analyst, a technical analyst and a project manager, and 2 employees from the supplier – an implementation expert and a project lead. The bank chose to implement Recons 1.0, Techurate Systems’ reconciliation suite. The Auto Reconciliation Solution was integrated with Oracle Flexcube without any challenges.

The list of modules implemented is as follows:

  1. Electronic Channels
    • ATMs including deposit taking ATMs and Exceptions (Retracts, host transaction timeouts, cash dispenser etc.)
    • Electricity (ZESCO)
    • Airtel
    • MTN
    • Zamtel
    • POS (Merchant and Agent)
  2. Card Payments
    • VISA Reconciliation
    • MasterCard Reconciliation
    • FISP (Farmer Input Support Programme)
  3. Domestic Payments
    • Clearing
    • Electronic Funds Transfer
  4. Finance
    • Branch Submissions of GLs
    • ATM GLs Submissions from Branches
    • VAULT Submissions

Implementation was bank wide and involved moderate level of customization requirements as per Zanaco’s workflows. The key challenge faced by the implementation team was the migration of historical data from the Flexcube system to the new system and was resolved by creating Oracle jobs. The implementation was successful and was concluded in the planned period of three months.

The implementation resulted in a 90% efficiency improvement in reconciliation with staff re-alignment to other critical operations, and auto-certification of 100% of reconciliations. Zanaco now devotes more resources to spend on quality analysis, instead of manually entering and reviewing data. Auto certification of low-risk, rules-driven reconciliations greatly reduces manual labour and shifts focus to value-added activities and analytics.

The key benefits achieved include:

  1. Cost savings: Automating reconciliation significantly reduces processing costs and subsequent audit cost. There are cost savings driven by reduced risk and improved monitoring.
  2. Increased productivity: Automated reconciliations are significantly faster, and Employees only need to deal with any exceptions that aren’t matched via the automatic process or by securing the best terms on procurement cards, making their time available
  3. Improved data accuracy: Automating reconciliation removes the risk of human error, including data input inaccuracies, thereby providing a vital layer of control.
  4. Greater reconciliation control and improved compliance: An organisation that does not use automated and integrated reconciliation processes in place will lack the ability to keep an ongoing accurate and up-to-date view of its finances, leaving the organisation open to poor Reconciliation process and compliance issues. Auto reconciliation ensure the accurate recording, validation, consolidation and reporting.
  5. Enhanced Exception Detection: Auto reconciliation also helps detect exceptions and generates a different report to investigate further.

Key Facts

  • Bank: Zambia National Commercial Bank
  • Headquarters: Lusaka, Zambia
  • Supplier: Techurate Systems
  • Solution implemented: Recons
  • Deployment: On-premise
  • Timeline: 3 months
by IBS Intelligence