Financial institutions—faced with a lower return on equity and greater regulatory demands—have been forced to reduce their cost structure to help maintain profitability. To complicate matters, financial institutions often find themselves dealing with a costly, non-standard, and overly complex infrastructure, including multiple product sub-ledgers and general ledgers. In some cases the existing legacy infrastructure has not kept pace with trading processes and product development, leading to deficient platforms and offline manual processes.
Product control is the first point of entry to improve data accuracy and completeness for the finance and risk functions. Sourcing data once through a consistent framework simplifies processing and helps reduce complexity across finance and risk.
With these concerns in mind, Accenture and Oracle have developed an innovative approach: The Oracle and Accenture Middle Office Product Control. It combines the Oracle Financial Accounting Hub offering and Accenture’s finance and risk capabilities to help clients capture more value from their investment. Oracle Financial Accounting Hub acts as the contract sub-ledger or trade repository, as well as the accounting rules repository and the contract-level balancing and posting engine. This approach streamlines the product control function. It helps provide seamless, controlled, automated access to co-mingled trade and accounting data, automated desk versus ledger profit and loss (P&L) reconciliation, and adjustment capabilities.