Financial Insights Predicts Spending Surge in Securities Reconciliation

FRAMINGHAM, MA – JUNE 17, 2003 – Leading independent research and advisory firm Financial Insights predicts that the next 18–24 months will see a surge in securities reconciliation spending – followed by a slight drop as securities firms realize improved efficiencies. Financial Insights' analysis is detailed in a new report, part of a series that forecasts the global spending on reconciliation applications over the next five years, provides an overview of the evolving reconciliation market, examines how to build a reconciliation architecture, and profiles the vendors in the market.

"We believe the reconciliation market is on the cusp of a surge in spending in the next 24 months," said Damon Kovelsky, Capital Markets analyst at Financial Insights. "Reconciliation has evolved beyond just matching trades against third parties – it has moved into areas such as workflow and exception management. These new technological changes make it important for securities firms to update their reconciliation applications and architectures if they want to improve efficiencies – and many vendors promise a relatively inexpensive way to do it."

Following are summaries of the new reports in the trading technologies reconciliation series:

"Reconciliation: The Easy Stuff Made Hard" — Damon Kovelsky provides a market overview of securities reconciliation. The report examines how matching applications, workflow and exception management tools interact, and how the market is evolving as firms start to implement these tools. Financial Insights outlines several factors that firms should consider as they move forward with improving their reconciliation systems.

"The Ups and Downs of Reconciliation Spending" — Damon Kovelsky and Maggie Scarborough forecast the global spending by securities firms on reconciliation applications over the next five years. The report breaks spending down by firm size and geographical region; and explores actions that securities firms can consider when preparing to implement a new reconciliation system.

"Reconciliation's Enterprising Vendors" — Damon Kovelsky reviews key reconciliation market players and their current offerings that support automating this process. The report looks at how market players are positioning themselves to take advantage of these technologies and offers essential guidance for banks looking to purchase a next generation reconciliation application.

"Reconciliation Architecture: Building on the Enterprise" — Maggie Scarborough examines how to build a reconciliation architecture in both the securities and corporate banking markets and how it is evolving to meet enterprise needs. No longer viewed as simple matching utilities, reconciliation systems are emerging as a cost-efficient means to unite fragmented processes across disconnected transaction and business flows.

For more information on obtaining these reports, please contact:

About Financial Insights, an IDC Company

Financial Insights provides independent research services to users and providers of financial industry technology. The company was formed in November 2002 by combining Meridien Research and the IDC Financial Services Advisory group. The Retail Financial Services practice offers four areas of focus: Payments, Channels, Customer Strategies and Wealth Management. The Capital Markets practice offers Trading Technologies and all aspects of Risk Management. The Corporate Banking practice covers cash management, wholesale payments, trade finance, and small business banking. Each practice delivers reports detailing new issues and challenges and uses its knowledge to advise clients on technology related decisions. Financial Insights is an IDC Company, headquartered in Framingham, MA. Visit for more information.

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