In the financial services industry, ERP systems need to be much more advanced than the EPR system used in average small to mid-size business ERP. The reason for this is that the accounting functions are more complex, there are more regulations and visibility into finances is extremely important. Increasingly, regulatory bodies and audit firms are pushing financial service companies to employ better ERP systems that can improve financial management from previous manual processes. Therefore, those in the industry need to specifically look for financial services ERP to meet their unique and specific needs.
The complexities of the financial services sector contribute to it being more vulnerable to challenge and change than most other sectors. For that reason, implementing a cutting-edge ERP solution that will deliver the requisite control, automation and visibility will ensure that businesses are able to navigate this sector’s difficulties.
There are many different companies that need financial services ERP such as banking institutions, credit unions, loan brokers and insurance companies. These financial sectors need heavy accounting functions and the ability to comply with industry regulations and audits.
What makes Financial Service ERP so unique and helpful?
Financial services ERP works differently than many other ERP systems. It has a more robust accounting system and gives complete insight into your customer’s financials and the businesses financials, while also complying with industry regulations.
It is a versatile, dynamic ERP solution that is designed to support businesses, giving them exceptional control over their financial and business data, whilst providing the perfect base to scale up with increased functionality and complexity when the time is right.
When it comes to the financial sector, complying with regulations is extremely important. Customer data needs to stay on lockdown and there are tons of industry regulations that you need to be in line with, such as the legislative requirements of Sarbanes-Oxley. Instead of manually trying to keep track of everything, financial service ERP can automate these processes, especially when it comes to auditing so that accountants aren’t scrambling to find the data.
Strong Accounting Functions
Businesses within the financial service sector need stronger accounting functions than businesses in other fields. Financial services ERP offers multi-currency functions, multiple books, advanced allocations, financial planning, built-in security, rebates, taxes, asset management, and many other features. While other systems have the basics, financial services ERP covers every accounting function needed.
When focusing on how to handle a customer’s money, transparency is key. Businesses need to be able to enforce and ensure that every employee in the is following company-wide standards. By having this type of visibility, it can increase customer loyalty because customers feel safe when businesses are able to respond efficiently.