How a Top-Tier Asset Manager Mastered Complex Reconciliation

The Challenge

A top-tier asset manager, one of Europe's largest, faced a growing operational challenge. With assets under management spread across multiple custodians and fund administrators, their operations team was drowning in manual reconciliation work.

Every day, teams had to manually collect, normalize, and reconcile data from five different custodians. Each custodian provided data in different formats, at different times, and with different levels of granularity. The result was a fragmented view of their portfolio positions that made it nearly impossible to get a real-time picture of their holdings.

Key pain points included:

• No single source of truth for position data across custodians
• Days of lag between trades and reconciled positions
• Manual processes prone to human error
• Limited scalability as AUM continued to grow

The Solution

Working closely with the client's operations team, Next Gate Tech implemented a comprehensive data management solution that transformed their reconciliation workflow.

Unified Data Ingestion

The platform automatically ingests data from all five custodians, regardless of format or delivery method. Whether the data arrives via SWIFT, SFTP, API, or email attachment, the system normalizes it into a consistent data model.

Intelligent Matching Engine

Our AI-powered matching engine automatically reconciles positions across custodians, identifying and flagging discrepancies in real-time. The system learns from historical patterns to continuously improve match rates.

Exception Management

When discrepancies arise, the platform provides a streamlined workflow for investigation and resolution. Operations staff can drill down into the source data, track resolution status, and maintain a complete audit trail.

Results

Within three months of implementation, the client saw dramatic improvements across their reconciliation operations:

• 80% reduction in manual reconciliation effort
• Same-day position reconciliation (down from 2-3 days)
• 99.7% automated match rate across all custodians
• Full audit trail for regulatory compliance

The operations team was able to reallocate significant resources from manual data processing to higher-value activities like exception investigation and process optimization.

Looking Ahead

With the foundation of a unified data platform in place, the client is now exploring additional use cases including NAV oversight, regulatory reporting, and portfolio analytics. The flexible architecture of Next Gate Tech allows them to expand capabilities without replacing their existing infrastructure.