fintech universal reconciliation datamart

UNIVERSAL RECONCILIATIONDeepa Goyal

2 I © 2016 Prosper. All Rights Reserved. Proprietary and Confidential.

Universal ReconciliationServicing ~500K monthly Financial Transactions, there is a need for an Auditable Unified Transaction Level Validation.

Wells Fargo Data FeedsLoan Transactions HistoryPaper Statements

What is the Universal Reconciliation DataMart?

Combine ACH, Bank draft and Check Reconciliation into single

persistent Reconciliation DataMart

Auditor and Finance Friendly line-by-line record of all

reconciliation activity across all Operations.

Facilitate Analytics on Reconciliation at a daily, weekly or

monthly grain

Scalable Design far beyond ~500K monthly Servicing

Transactions

Database record for Reconciliation Notes and associate relevant

JIRA History.

Reconciliation is the process of validating all Prosper Transactions Sourced from Spectrum and Wells Fargo Data Feeds

against Bank Statements and Match Cash Balance.

Scale for Business Value

Auto Reconcile over 99% transactions achieving Proactive

Operations response

ME Close for Accounting and Finance within 1 Business

day after EOM.

Make Prosper Audit Ready!

Reconciliation Feedback within the same month

Reduce Manual Reconciliation Effort

Surface and escalate System generated issues as soon

as they occur

Identify action items faster and make more time for

Resolution

CircleOne 99.43%

Statements 100%

Bankreport 99%

Drive Operations Excellence

Tableau Dashboard showing Reconciliation Status and

Backlog to drive Prioritization and Planning Each day

Quantifiable Reconciliation Effort estimates and Backlog

tracking.

Data-Driven resource allocation and prioritization.

Isolate Primary Source System causing Error

Servicing Retrospective to evaluate Cost of Processing and

Handling transactions

Resource Planning

and allocation

Daily

Status

PrioritizationServicing

Cost Evaluation

Audit Trail Call to Action

All The Data

Single Format ANALYTICS!

Designing for Operational Excellence

Bank Statement- Wells Fargo sends database copy of Paper Statements for All Prosper owned bank accounts

Bank Data- Wells Fargo Transaction Processing that is not initiated by Spectrum:

Fremont Lockbox Facility - Associate paper checks to LoanIDs and Deposit

ACH and Check Returns as a results of Stop Payments, Closed Accounts, NSF on Borrower

Marketplace - transactions driving Borrower and Investor Reporting

Universal Recon Data

Mart

Bank Statements

BankReport(Bank Initiated Transactions)

CircleOne(Prosper

Transaction History)

Analytics Focused Dimensions, Categories and Flags to slice and dice the

data:

Record Date

Source System

Reconciliation Label

Reconciliation Notes

Reconciliation Category

Associated JIRA Ticket


BEFORE

Questionable Data Accuracy

Non searchable - Spreadsheet documentation

Time consuming copy paste, prone to manual error

Reconciliation at daily aggregate level lacking Transaction level detail

Inability to scale for growing volumes


AFTER

Reconciliation Scorecard

Data inserted through Automated SQL code

Database record for each line with limited edit permissions

Auto Refreshing Tableau Dashboards showing progress and isolating

variances

Transaction level detail available for Auditable transaction history

Auto Reconciling code included in the stored procedure


Next Steps:

June• Finalize Columns by testing for Lockbox Reconciliation• Update statements to handle maximum possible reconciliation by auto reconciliation for

Lockbox.

July

• Rewrite Lockbox Reconciliation Procedures to use Universal Reconciliation• Production Deployment of Phase 1 Universal reconciliation• Build Tableau Dashboards for Key Metrics showing Work Load and error buckets.• Code Skeleton for ACH Reconciliation Code

August

• ACH Reconciliation Phase 2• Testing in Tabreporting for Scalability and stability• Establish Reporting metrics required for ACH Reconciliation• Phase 2 Deploy to Production

fintech universal reconciliation datamart

Data & Analytics