For financial services companies, the ability to tackle the convergence of sweeping regulatory changes and downward revenue pressure—and emerge stronger—could come down to a data-rich source hiding in plain sight: subledgers.
Despite being an essential repository for transactional data across operational systems, subledgers (also called subledger journals) haven’t been fully leveraged for richer analytics at most financial services companies. Reasons for this include the limitations of legacy systems and their complex data architectures, and prioritizing the development of digital customer experiences.
But with cloud technology and an accounting rules engine—software that allows finance to create and assign detailed accounting rules to business events—financial services companies can produce financial and operational reporting with subledger details intact. That means teams across the organization have the abilities to drill into profit drivers, resolve variances with drill back to the source data, determine risk, and support agility in financial forecasting, which are all necessary for navigating change and emerging stronger.
Legacy Solutions Are Inadequate but Hard to Replace
Insights into profitability are in subledgers, whether it’s a trading subledger, a banking product subledger, or a policy subledger. But pulling the data together from numerous subledgers is no trivial task. Legacy financial systems and their