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An interview with AutoRek’s MD, Gordon McHarg

For those who don’t know AutoRek, could you tell us what you do and what makes you different?

AutoRek is a financial controls and data management platform which automates and streamlines data collection, validation and reconciliation of financial data. We were founded 25 years ago as a Glasgow based consultancy firm specialising in data management and bespoke applications development on the Microsoft platform. The majority of our customers are financial services companies with high transaction volumes and often complex data management requirements.

Our software is a configurable rules driven platform which can be applied to diverse business scenarios including Mortgage payments, Insurance premiums, ATM cash management, internal financial controls and various regulatory reporting requirements such as MIFIDII and CASS (client asset protection).

Over the course of 25 years, we have worked with our clients continually evolving our product to meet the needs of the financial services market adapting to new operational challenges and the ever changing local and global regulations. Our technology has also evolved transitioning from a client server windows application to being web enabled and is now available as a fully featured SaaS solution. Our upcoming Version 6 of AutoRek, scheduled for release August 2020 will be the first release of AutoRek with embedded AI & ML capability.

Making effective use of technology to solve business problems requires a team capable of understanding and delivering solutions. Our primary differentiator in the market is the capability of our people and the commitment of our team to deliver the best possible outcome for our clients.

 

You’ve signed some very impressive clients in the past few months including Nationwide and the Bank of England. What are the reasons of your success?

We have a number of the UK’s leading financial services organisations as clients which we are very proud to have on board and serve. The Bank of England and Nationwide, were of course, great names to add to our list. In both cases, we were competing with large global reconciliation platforms.  Our understanding of the specific requirements of their business and the capability and flexibility of our software to deal not only with the huge volume but the complexity of data led to AutoRek being selected by both organisations.

 

You also appeared in the Regtech 100 list recently. This is a great achievement. 

We were delighted to appear in the RegTech 100 list, one we have been associated with the last 2 years. It is always great to be recognised as a company for our efforts in the industry. It is hard to say if that has helped with recent wins, but it definitely didn’t put us on the back foot. These awards and recognitions are always great to appear in. It shows that our clients are satisfied with how we operate and that what we provide for them as a service helps them in their day to day jobs. They will certainly help AutoRek to be recognised as a leading software in future years.

 

Can you tell us more about your partnership with Cforia?

In 2019 AutoRek established a partnership with Cforia Software Inc,

a US-based global enterprise solutions provider delivering end-to-end global order-to-cash automation. CForia have embedded the AutoRek product into their Order to cash platform supporting automation of payment allocation and cash reconciliations. Our partnership is still at an early stage however having added 3 new global clients in the last 6 months it is looking very promising.

 

How has AutoRek been impacted by the COVID19 crisis?

In the early days of the pandemic the health and wellbeing of everyone at AutoRek was clearly our first priority. We moved the whole company to remote working one week prior to the government lockdown announcement. This wasn’t a particularly difficult decision as we were confident that most of our day to day operations could be executed remotely and that has proved to be largely the case.  Some initial logistical challenges have been overcome and the initial novelty of video calling has worn off and become the typical day to day for most us.

As far as business is concerned our existing customers combined with a strong order book has kept everyone busy. Clearly there has been a significant impact on the market and going forward new business development will no doubt be challenging. That said, technology businesses are well positioned to help customers adapt to new operating environments, be that the support of effective home working or improving business efficiency through automation. Difficult market environments change business priorities and create opportunities for innovation, and it is important to be ready to adapt to meet client needs. A good example of this is the client money protection regulations introduced following the 2007/2008 Global Financial Crisis. This created an opportunity for AutoRek and now more than 30% of our clients use our software to help them comply with the regulation.

Operationally the company has continued to perform very well and deliver for our clients however undoubtedly many of our team, including myself, are missing the day to day interaction of the workplace. Our team culture is central to who we are as a company, while remote working has become the new “norm” and is undoubtedly here to stay we are all looking forward to the opportunity to get back together as a team.

 

What do you think the future of automated reconciliation is?

The availability, quality and integrity of data within a financial services company is critical to its success. Whether it is understanding the business performance of a new product line, delivering quality services to clients or complying with regulation a key requirement is almost always about getting data right.

Data volumes are growing at almost exponential rates and regulatory demands continue to create significant strain on the industry. At the same time market disruption from new Fintech start-ups and large multinational tech platforms like Apple and Google leave the more established financial services organisations needing to accelerate innovation while at the same time reduce the cost of operations.

Empowering key decision makers, finance functions, compliance or customer management teams requires tools which are easy to use and support non-technical users in collating, reconciling, aggregating and analysing increasingly large and complex data. Recent developments in robotics, artificial intelligence and machine learning technologies present significant opportunity to reduce the complexity, automate manual processes and accelerate decision making for our customers.

 

What are the main challenges for regulatory reporting?

Over the past decade, in the aftermath of the global financial crisis, the finance sector has been swamped by regulatory change. Large established organisations as well as new entrants are required to comply with these regulations while at the same time evolve their customer service offering to keep pace with the increasing expectations of the digital consumer.

 

  • Being clear and transparent – Regulators continue to test firms with a focus on restoring confidence in markets and improving transparency and fairness. Automating and integrating regulatory reporting, increasing operational efficiencies and mitigating risks are key to relieving some of the pressures compliance brings.

 

  • Managing Data – Both regulators and auditors expect organisations to be in full control of their data. This means understanding the completeness and accuracy of the data used to complete regulatory returns. AutoRek works in conjunction with existing systems to complete and perfect financial and operational control processes. Our solutions help firms overcome spreadsheet intensive data management and reporting processes, ensuring ongoing control and regulatory compliance.

 

How would you describe Scotland as a place to launch, develop and grow a tech company?

Scotland has a reputation globally of producing talented graduates with an excellent attitude to work. Our universities produce thousands of graduates in tech, maths and sciences allowing us to attract some of the world’s leading financial organisations. While this has an impact for home grown companies, e.g. when competing for staff, it has also been key to creating the thriving digital economy and growing Fintech sector that we have today.

Ultimately for most companies the key to success is having a great team. Of course, there are some overnight successes but the majority of businesses develop and mature over time. The fantastic quality of life with low commuting times and excellent cultural scene make Scotland a great place to start and grow a business.

 

What does the future look like for AutoRek?

Although we have a number of global clients, for the last 25 years, AutoRek has predominantly been working within the UK market focussed on Asset Management and Banking sectors. In 2020 and beyond (this year being slightly delayed), we are looking to grow our business in the US and further develop our presence in the Insurance sector. With having an established partnership with Cforia Software Inc, a working capital and accounts receivable (A/R) automation software, we are well on our way to achieving our goals.

 

 

 

AutoRek wins contract for IFRS 17 Reconciliations

Scottish fintech AutoRek has announced that they have been chosen as the preferred reconciliation tool for a major international underwriter. The Glasgow based fintech firm will help its new client to comply with IFRS 17 standards.

IFRS 17 is very complex and one the biggest, if not the biggest, changes to financial accounting in insurance since Solvency II. AutoRek had helped many of its customers with Solvency II and is now working with them on IFRS 17 infrastructure.

By performing all reconciliations, Autorek will ensure that data quality and completeness are following the highest standards as defined in the IFRS 17.

One of the key reasons AutoRek was selected was the flexibility the solution offers in relation to the ever-changing future requirements.

Autorek will enable its new client to achieve:

  1. Efficiency ”“ Significant time saving due to the reduction of manual processes.
  2. Transparency ”“ Clearly defined process and controls framework which maintains the integrity of reconciliations.
  3. Data Quality Assurance ”“ Each time data is loaded it is validated for its accuracy and completeness to ensure integrity.
  4. Audibility ”“ The system maintains a full audit trail at a transactional level ensuring accountability.

“This represents a significant win for AutoRek and we are looking forward to continuing to develop our IFRS 17 offering as we work towards the go live date in January 2023”.

Piers Williams, Head of Insurance at AutoRek

AutoRek signs Nationwide as a new client

AutoRek, the Scottish fintech and leading software solutions provider for financial controls, data management and regulatory reporting, have just announced that Nationwide Building Society had joined their list of clients.

The initial contract of 3 years (with option of another 2 years extension) will see Autorek provide Nationwide with their cloud-based financial controls and data management platform.

Nationwide selected Autorek for their ability to deal with a number of reconciliation and attestation challenges. The project will be implemented in a multi-phase approach and will include Mortgages, ATMs, Payments, Cards & Substantiation.

“I am really pleased to welcome an organisation of Nationwide’s calibre to our list of clients. We are looking forward to building a good working relationship with the team and providing them with our experience in helping leading financial services firms better understand their transactional data. This is a landmark deal for AutoRek and the result of an extraordinary team effort on both sides”

Gordon McHarg, AutoRek’s Managing Director

“After a thorough tender process, we were impressed with the quality of the AutoRek tool, it’s speed, adaptability and robustness. We noted that with its cloud functionality that we could face into future with confidence on scale and volume.”

Ian Williams, Director of Financial Control & Operations at Nationwide Building Society

Scottish fintech Autorek selected by Bank of England for their automated reconciliation and data management solution.

Following a competitive tender the Bank has chosen Scottish fintech AutoRek for the automation of their reconciliation processes. The main objective is to increase efficiencies.

Thanks to Autorek, the Bank of England will have access to a centralised platform for their daily and monthly reconciliation tasks.

The key business benefits of Autorek include:
”¢ Enhanced control
”¢ Accurate matching at transaction level mitigating risks ”¢ Better insights into processes
”¢ Best in class automation tools
”¢ User configured dashboards

“It is a testament to the whole AutoRek team that we have been able to successfully engage with an institution such as the Bank of England. As we enter our 25th year of operations we have and continue to work with a broad range of leading Insurance, Investment Management and Banking organisations. I look forward to AutoRek delivering value and efficiencies for the Bank as we move into the implementation phase.”

Gordon McHarg, Managing Director

New Edinburgh Office for Autorek

Scottish fintech AutoRek recently announced the opening of their new office in Edinburgh at Apex One in Haymarket.

Following a very important recruitment push in 2019, a new office was deemed a priority for the 25 year old successful company which provides financial controls, regulatory reporting and data management software solutions.

The new office is just over 5,000 square foot and equipped with the latest technology. It’s ideally built to accommodate for training courses, helping their customers make the most of of their solution.

This follows another move to a new office in Glasgow and 2020 should see their London team being relocated to a bigger office to prepare for growth as the demands from the industry is also rapidly growing.

“After years of sustained growth we are excited to be able to move into a much-needed bigger office space. Apex one in Haymarket is a great location with amazing views. The space is best in class, and we look forward to welcoming our clients to the along for meetings and training days”.

Gordon McHarg, Managing Director

FCA’s Innovate’s Sandbox open for applications

Photo by Prateek Katyal from Pexels

The FCA’s Innovate’s Sandbox is currently open for applications until the 31st of December 2019! 

As well as looking for applications from innovative businesses wanting to make positive changes in the financial services sector, this year the FCA has highlighted areas where it would like to see innovation. It’s particularly interested in receiving applications from firms with propositions that: 

  • make finance work for everyone ”“ by addressing issues around access, exclusion and vulnerability
  • support the UK in the move to a greener economy ”“ by responding to the challenges posed by climate change
  • use technology to overcome regulatory challenges ”“ by helping regulated firms comply with their obligations

It’s also highlighted 2 specific technology areas where the FCA would like to see more innovation and testing and applications are welcome from:

  • federated learning and travelling algorithms
  • complex scenario modelling and simulation

For more information on the process, eligibility criteria and lessons from previous Sandbox cohorts please use this link.


It would be great to see more applications coming from the vibrant innovative community in Scotland. Please get in touch if you’d like more information. 


Good Luck!

Autorek and the Automation Revolution

AutoRek have just announced that they had partnered with Worldwide Business Research (WBR) to generate an industry report. The report will be focusing the state of automation and data management within the financial services sector. 

The survey includes feedback from 100 individuals within the operations, IT, business change, finance and data management business functions. They were asked how automation will affect the financial services industry in the next 5-10 years.

Key findings include:

  • The majority of those interviewed are implementing blockchain, semantic data management, machine learning and automation
  • Respondents think that AI is likely to impact product development and innovation the most.
  • 46% of respondents are looking for new technologies to assist data governance. 

Investing in the Automation Revolution’ will launch at Sibos London between 23rd”“ 26thSeptember.

Scottish based AutoRek partners with US Cforia Inc to provide major productivity gains in Cash Collections

Cash Flow is the lifeblood of all businesses, therefore, shortening the time to collect and apply cash to the Accounts Receivable is a key goal for companies.

As revenue grows and the company’s exposure to accounts receivables increases, the size of the Cash and Collection team (C&C) and number of FTEE’s increases to protect what is typically 60% of a company’s available working capital.

But the C&C team expansion does not occur smoothly; it “reacts” after the Days Sales Outstanding (DSO) and Days Beyond Terms (DBT) reaches an unacceptable financial point of risk tolerance. When the actual DSO exceeds the target DSO tolerance, the “reaction” comes in the form of hiring another C&C team member or two.

Once hired and trained, the delinquent accounts receive more attention and the DSO/DBT responds favourably and begins to drop below target DSO to acceptable levels…and then this process repeats. This could be referred to as the C&C Wash Rinse andRepeat cycle.

So how do companies escape this traditional react-driven C&C growth cycle? What effect does this fits-and-starts “crisis response” cycle have on your company’s working capital? And what do your key stakeholders think about these practices, particularly related to your C&C team and the productivity of their FTEE’s?

This “Crisis-Driven” environment is pervasive across most C&C departments. In response to the latest crisis deux jour, management will allocate the minimum amount of additional resources and no more. It typically starts with temp staff who never seem to leave. OTC managers are excessively busy. Complicating this further is the lack of access to the necessary IT or consulting resources who could provide assistance in the streamlining of the processes.

 

This is the significance of the announcement of a partnership between AutoRek and Cforia Inc

Founded in Glasgow and with offices in Edinburgh, London and New York, AutoRek, is a global provider of reconciliation and advanced Order to Cash solutions for both the Financial Services sector and global corporates.

Cforia Software, Inc. is a global enterprise solutions provider, delivering industry-leading working capital and accounts receivable (A/R) automation software. Over 250 enterprises are managing $300 billion in A/R turnover with Cforia today via their Autonomy Software solution

This partnership means that Cforia will now be able to add AutoRek’s learning algorithm OCR capability with AutoRek’s Automated Reconciliations, Advanced Matching Workflow and Cash Application to their roster.

This will dramatically improve Working Capital results for companies and result in a reduced requirement for additional C&C resource. Indeed, labour savings of above 30% are not untypical after the introduction of the combined solution. It also means that growth issues, in terms of turnover, can be handled without an increase in labour requirements.

AutoRek is delighted with this partnership. It is creating considerable opportunities for AutoRek within the US market where the demand for a single vendor solution’ is high, while also offering more to existing customers.

Managing Director of AutoRek, Gordon McHarg says “AutoRek is excited to announce this strategic alliance with Cforia. Both companies are proven global leaders with multinational clients and use the same advanced technology stack. Most importantly however is that both share the same vision for improving working capital for our customers.

With this announcement, we will be jointly extending our global reach and offering companies an end-to-end solution from cash collection to cash application and cash reconciliation.”

Chris Caparon, CEO of Cforia Software added: “With the integrated release of the Cforia Cash Application and Bank Reconciliation Modules, Cforia.autonomy™ has extended our straight-through-processing capabilities for Zero-Touch Posting of EDI, EFT, ACH, PCI Compliant Credit Card, Direct Debit, Lock-Box and Cash payments. Customers will see immediate impacts in capacity, accuracy and key performance indicators while providing increased visibility, command and control of global working capital.”

With the combined knowledge, AutoRek and Cforia were able to come together to build a globally capable system which can provide solutions which solve the complex system challenges of today’s global enterprises.

Both AutoRek and Cforia are companies hugely familiar with multi-currency clients and multiple billing systems and reconcile millions of transactions daily over the UK and worldwide. For one of their clients, AutoRek reconciled 2.4 billion transactions in only 1 hour.

AutoRek and Glasgow Chamber of Commerce come together for free International Business Development working lunch

AutoRek, a global financial controls, regulatory reporting and data management platform, have announced that they’ll be hosting an International Business Development working lunch in collaboration with Glasgow Chamber of Commerce next month.

The aim of the event is to bring together a number of business leaders from Glasgow’s SME community to discuss the International Business challenges they face and will provide them with an opportunity to work together to overcome such challenges. As a business with roots in Glasgow, AutoRek is keen to offer advice to these businesses, as well as give them the chance to collaborate with like-minded professionals and tackle issues head-on.

Headquartered in Glasgow, with offices in London, Edinburgh and New York, AutoRek’s solutions are deployed globally. They deliver a range of financial, operational and regulatory reporting control solutions. They have supported implementations in many leading organisations with projects including high volume data migrations, elimination of spreadsheets and manual processing, regulatory reporting, mitigation of operational and regulatory risk, and reduction in fast close processes. This makes AutoRek well placed in their collaboration with Glasgow Chamber of Commerce to assist these businesses in combating the challenges they face, Lyn Canavan (Head of Marketing) said:

“We have teamed up Glasgow Chamber of Commerce to host our first in a series of International Business Development working lunches. We believe that it presents a great opportunity for local business leaders to collaborate together sharing ideas and common challenges. We already have a good relationship with Glasgow Chamber of Commerce and we are looking to build upon this partnership and expand globally.”

 

The event will be held between 11:30 and 14:00 on the 5th of March in AutoRek’s offices at the Garment Factory on Montrose Street. A huge plus for these businesses is that the event will be totally free to attend, offering an excellent opportunity to network with other Glasgow-based business professionals and SMEs looking to work on these common issues and expand internationally. With Brexit on the horizon, the impact of it on SMEs has been and is a growing concern. Recently, Barclays has announced that it will be hosting Brexit clinics’ in Scotland from March to support SMEs through Brexit, and, last week, Scotland’s finance secretary Derek Mackay told MSPs that the Scottish economy faces being pushed into a recession “worse than the 2008 financial crash” under a no-deal Brexit. With the loss of multi-million pounds worth of global trade contracts in such an event, it’s no surprise that Scottish SMEs are keen to prepare ahead of it.

 

AutoRek’s offices are located in the heart of Glasgow’s City Centre, just off of George Square and will be easily accessible for all attendees; just a 10-minute walk from Glasgow Central Station.

 

Are you interested in attending the International Business Development working lunch? You can sign up for the event on AutoRek’s website:

https://www.autorek.com/events/international-business-development-working-lunch/

FCA news – Tips to keep up to date with the regulator

I always pause for thought as I write an update on what’s happening at the FCA, thinking about how to summarise the essence of what I’ll cover and knowing I’m only focusing on a small sample of what’s going on there.

For those of you able to make it to last week’s FCA event you’ll have heard the team talk about the size of the FCA’s role and remit. Since coming back to work after the Christmas break I’ve found myself thinking about what to cover in my regular blogs, when there could be so much to highlight. So its with that thought in mind that I’m focusing the majority of my update on a couple of ways to keep up to date with what’s going on at the FCA and ending with a specific point relating to a consultation paper on cryptoassests.

 

Getting updates from the FCA

There are two communications that I’ve always found helpful and even more so since staring my role at FinTech Scotland.

The first is simply a weekly email that contains a summary of that weeks FCA news. Its a great way of seeing what the Regulator has published that week. It’s no more than one page (usually) and will include links to any consultation papers, policy papers, final notices, speeches etc. Its worth signing up for – try this link.

The second is the Regulation Round Up. Its published on a monthly basis, includes information that is relevant for all firms regardless of sector, size or business model. The January Edition can be accessed here and for those interested you can also sign up to receive the Regulation Round each month – regardless of whether or not you’re involved in an authorised or regulated business. Again – my view is – its worth signing up for!

As well as covering hot topics, the Regulation Round Up provides updates on ongoing FCA work, will often contain articles outlining the FCA’s view on an topic and will include relevant links to current consultations and other FCA papers that may be relevant to your business or future plans. It will also outline any FCA events that maybe relevant or useful for your business.

The January edition highlights that the FCA intends to carry out a survey of smaller firms on how FCA regulation specifically impacts them. This work will be completed by an independent consultancy – Kantar Public. If you’re contacted please support this initiative. Your feedback will be highly valuable.

It also mentions that the FCA will be holding two events in Edinburgh in March aimed at regulated firms working in general insurance or the retail investment market. You’ll find more detail through the January Edition link above as well as information on how to register for the events.

There is much more information in the round up and the final point I’ll reflect on here is that in this months edition it also covers the important topic of Preparing for Brexit!

 

Getting insight from the FCA

To help focus its work, the FCA has divided the financial system into seven sectors that it monitors on a continual basis. It develops a set of sector views that provide a way to bring its collective intelligence together and considers a wide range of factors that drive change across the financial system.

The sector views are published and made available on the FCA website and will also be used as the FCA shapes and develops its business plan – due later this year.

The latest set of sector views were published in January and can be accessed here

 

Consultation paper – Guidance on Cryptoassets

The FCA is consulting on Guidance on crypto assets. This work is to help businesses understand whether their crypto asset activities fall under regulation.

This consultation has the potential to apply to a wide range of businesses. If crypto assets is currently or may potentially to be part of your business in the future, or if you’re engaging or talking to consumers on this topic or marketing this type of product, please review this consultation and offer your feedback. Comments are required by Friday 5th of April and can be emailed to fcacrypto@fca.org.uk

As I sign out for now, a final reminder that the FCA’s project Innovate team is hosting an event in Edinburgh on the 31st of January. I look forward to seeing you there. Please come and say hello especially if we’ve not met yet.

All the best

Nicola