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ReconArt, Inc.

SITE PRIVACY POLICY

This Privacy Policy governs the manner in which ReconArt, Inc. (“ReconArt”) collects, uses, maintains and discloses information collected from users (each, a “User”) of the ReconArt.com website (“Site”). This privacy policy applies to the Site and all products and services offered by ReconArt.

Personal identification information

We may collect personal identification information from Users in a variety of ways, including, but not limited to, when Users visit our site, register on the site, fill out a form, and in connection with other activities, services, features or resources we make available on our Site. Users may be asked for, as appropriate, name, email address. We will collect personal identification information from Users only if they voluntarily submit such information to us. Users can always refuse to supply personally identification information, except that it may prevent them from engaging in certain Site related activities.

Non-personal identification information

We may collect non-personal identification information about Users whenever they interact with our Site. Non-personal identification information may include the browser name, the type of computer and technical information about Users means of connection to our Site, such as the operating system and the Internet Service Providers utilized and other similar information.

Web browser cookies

Our Site may use “cookies” to enhance User experience. User’s web browser places cookies on their hard drive for record-keeping purposes and sometimes to track information about them. User may choose to set their web browser to refuse cookies, or to alert you when cookies are being sent. If they do so, note that some parts of the Site may not function properly.

How we use collected information

ReconArt may collect and use Users personal information for the following purposes:

  • To improve customer service:  Information you provide helps us respond to your customer service requests and support needs more efficiently.
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  • To improve our Site:  We may use feedback you provide to improve our products and services.
  • To send periodic emails:  We may use the email address to respond to their inquiries, questions, and/or other requests.

 

How we protect your information
We adopt appropriate data collection, storage and processing practices and security measures to protect against unauthorized access, alteration, disclosure or destruction of your personal information, username, password, transaction information and data stored on our Site.
Sensitive and private data exchange between the Site and its Users happens over a SSL secured communication channel and is encrypted and protected with digital signatures.

Sharing your personal information

We do not sell, trade, or rent Users personal identification information to others. We may share generic aggregated demographic information not linked to any personal identification information regarding visitors and users with our business partners, trusted affiliates and advertisers for the purposes outlined above.

Changes to this privacy policy

ReconArt has the discretion to update this privacy policy at any time. When we do, we will revise the updated date at the bottom of this page. We encourage Users to frequently check this page for any changes to stay informed about how we are helping to protect the personal information we collect. You acknowledge and agree that it is your responsibility to review this privacy policy periodically and become aware of modifications.

Your acceptance of these terms

By using this Site, you signify your acceptance of this policy. If you do not agree to this policy, please do not use our Site. Your continued use of the Site following the posting of changes to this policy will be deemed your acceptance of those changes.

Contacting us

If you have any questions about this Privacy Policy, the practices of this site, or your dealings with this site, please contact us at: ReconArt – info[at]reconart[dot]com

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ReconArt 
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Feb / 27 / 2024

The Remittance Industry & Reconciliation – the ReconArt Perspective

Industry Overview

Payment services and their evolving online and mobile cash transfer channels have emerged as a flourishing industry. People across borders connect and engage in trade exchange with increased convenience. The payment platforms facilitate B2B, C2B and increasingly so P2P transfers, both domestic and international. The latter represent a significant portion of the world capital transfer volumes.  Foreign remittances stand out as a particularly important part of the national current account of labor exporting destinations. In some developing countries, remittances even outpace foreign direct investment (FDI) inflows. Global remittance flows in 2014 amounted to $583 billion. In 2017, they reached $613 billion and are expected to inch up to $642 billion in 2018, the World Bank reckons.

The role of each of the payment industry players requires overcoming infrastructure obstacles, penetrating diverse environments and tackling challenges concerning service speed and security. On top of technological problems to be solved, there are F&A as well as legal & compliance aspects of this high-friction business. All-time present risk can manifest itself in plenty of circumstances such as short transaction lifecycle, high volumes, cross-border jurisdictions & regulations, currency risks, pressure to slash service fees, a long chain of collaborating stakeholders and the accompanying mutual dependence.

A BI Intelligence report shows that 94% of the remittance transfers are cash-based. However, a distinct tendency towards money wire service diversification and expansion is observed – both in terms of volumes and digital adoption. In the domestic US market alone, mobile P2P payments started off modestly with $5.6 billion compared to the general P2P segment worth $540 billion in 2014. However, it is forecasted to reach the $174 billion mark in 2019 and to contribute a third to the US P2P turnover. Online and mobile P2P transactions are driven by social commerce at national level, but will increasingly witness adoption in cross-border money wires.

In the past several years, a transition to digitalization of the remittance sub-sector is observed. While the legacy platforms involve physical presence of the remitter in front of a kiosk and deposit in cash to be wired, technology now opens payment services to security, mobile and e-commerce innovations. Start-ups are springing to address this rising demand. The majority of them report intensive growth, which subsequently puts control over operational adequacy higher on the agenda. As a result, reconciliation in this industry is a major aspect of sustained accountability and regulatory consistency.

With some modifications, the general mechanism of remitting abroad involves four parties:

  1. The payment operator interfaces with the remitter via an online application – desktop and/or mobile. The client (remitter) can choose from pay out options with a bank card, bank account, his account with a third party online payment platform, digital wallets (aka mobile money), etc.
  2. The payment operator then takes the transaction to the local correspondent – a resident bank within the location of origin.
  3. The local correspondent liaise with a money transfer operator, which has the responsibility to procure cash in the destination location.
  4. The local distributor is the point of contact for the beneficent, and here the latter can opt for bank account deposit, mobile money or airtime top-up, etc., in addition to the conventional cash pick up.

Obviously, a cross border money wire, big or small, calls for the collective effort of a multi-party cohort and generates a series of transactions in the backend. The remittance platform handles data from numerous data sources and is liable to growing in number and complexity reconciliation tasks. As the global network coverage of payment operators expands and their foreign partnership interactions intensify, bank statements reflecting these partnerships multiply in the queue. The settlement is performed in batches. Apart from the net sum wired, several service fees and commissions are deducted by the intermediaries down the line. Also, currency differences are incurred. All these items need to be reconciled in a swift and accurate manner, in order to avoid month-end close bottlenecks.

ReconArt’s Experience

ReconArt has the opportunity to work with clients well established in the remittance space and has gained valuable expertise in the field. WorldRemit has coverage in 145 countries worldwide with 0.5 million cash transfers handled monthly. InstaReM operates in 55 countries in the burgeoning Asia-Pacific market with a special focus on India. The company also manages bulk payments to multiple beneficiaries in multiple currencies and its network encompasses 8000 banks. TransferGo has footprint in 47 countries serving both consumers and business reaching 1 million transfers per year worth about half a billion GBP. The company is bracing for expansion in China.

The different players have specifics in their reconciliation processes. In the traditional mechanism, service fees are generally higher and the whole process – more sluggish. Online payments mean lower fees and faster delivery but also implies a more complex reconciliation process. Formats inevitably vary and the file import itself requires a lot of manual work in the absence of an automated method. Further, files enrichment and transformation prior to the matching itself is laborious and error prone, compromising the integrity of the input data. Cash in transit needs to be accurately reflected in the accounting systems and consequently verified against the bank statements. In addition, reconciliation requirements in the remittance industry may also pertain to non-financial data such as personal identification data.

Our clients are among the top 10 global providers in the online remittance ecosystem and demanded technological solution that would address the challenges of a fast paced, highly competitive environment, and skyrocketing transaction volumes. The spreadsheet framework used as a legacy method of reconciliation was not nearly sufficient for their needs. They were scouting for agile, scalable, ERP agnostic tool that would seamlessly and painlessly integrate with their current systems.

Scalability and room to grow are cited among the primary drivers to leverage the ReconArt solution. The matching engine and its critical mission to bolster internal control of incoming and outgoing transactions was the second major requirement.

User friendly interface and rule based end-to-end reconciliation are among the immediate benefits observed by the clients. Automated journal entries following the matching stage provided an agile interlock with the incumbent accounting system.

Another high priority product capability is period-end balance sheet reconciliation and certification. We pride ourselves at listening closely to our clients’ needs and embarked on ReconArt™ product augmentation – the bridge between the matching engine and the certification panel saw dramatic improvements as a result of client recommendations.

Another desired client benefits that ReconArt™ successfully implemented was analytics dashboards visualizations with cross sections of outstanding items, planned versus actual balances, and historic data at the users’ fingertips.

Our clients welcomed the cloud deployment of the ReconArt product because it enabled them to integrate the reconciliation process at company level with multiple user locations at hand – a feature with direct contribution to consolidated reporting, compliance and enhanced visibility appreciated by the management team.

The implementation time frame varied depending on the complexity of the reconciliation process each company had embraced. Together, we successfully tackled challenges such as calibration of ReconArt™ for huge inventory of data formats. User training was carried out with no disruption of the day-to day business. Just the opposite – clients reported substantial time savings.

Clients moved up the learning curve pretty quickly, with implementation of new processes and the incorporation of new matching rules in the existing framework. In cooperation with the implementation team, clients managed to clear the backlog of outstanding reconciliation tasks from previous years, and upgrade import templates, thus utilizing the full potential of the system with increased confidence and independence.

Flexibility, striving to perfection and adaptability to evolving client business requirements are our primary objectives. Our ethos is solving problems with mutual understanding and ambition to perform with zero compromise.

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Case Study

Holiday Extras

Holiday Extras

Industry: Travel & Leisure
Focus: AP Recs, Multiple Data Sources

Holiday Extrasis among the UK’s travel industry market leaders, offering bookings such as airport hotels, airport lounges, airports by rail and coach, car hire and holiday insurance packages.

read more

ReconArt Customers

Here are some of the customers who leverage our reconciliation software to automate their reconciliation and close processes.

Soyven
Gathern
Navan
Klar
Daikin
Expedia
Umpqua bank
Calgary co op B&W
deVolksbank
Nedbank
Asos
Fiat Chrysler
Ferratum
Quikrete
New York City Department of Finance
Worldremit
Bill
Catalyst
Xendit
Agency Insurance Company
MidFlorida Credit Union
Sparkasse Bank Malta

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