Case Study

$1.75 million controllership impact and higher customer satisfaction result from tighter unapplied cash processes

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Client: Global commercial financier

Industry: Commercial banking

Business need addressed: Unapplied cash resolution within five days

Genpact solution: Resolution of aged unapplied cash and implementation of five-day turn-around time threshold

Business impact:

  • Resolution of $5 million of unapplied cash and greater customer satisfaction
  • Controllership impact of $1.75 million

A leading global healthcare financier had large amounts of unapplied cash, aged more than 360 days, in its leasing business, leading to incorrect account balances and customer dissatisfaction. Genpact was engaged to resolve the long pending unapplied cash balances and to institute a maximum five-day turn-around time (TAT) going forward.

Business challenge

  • Unapplied cash aged over 360 days due to:
    • Incorrect and incomplete input from various sub-systems leading to inaccurate accounting
    • Incorrect monthly inter-company settlements
  • Overstated account balances leading to incorrect balance notifications to customers and greater customer dissatisfaction

Genpact took measures to clean up the aged unapplied cash and help maintain a tat of five days to clear unapplied cash

  • Designed a dispatch report to pull complete details from sub-systems, eliminating the risk of incorrect inputs
  • Posted the correction entries to the previous accounting ledgers and fixed the root sub-system issue
  • Updated the report that pulls the inter-company data to facilitate accurate settlement
  • Cross-trained other team members to aid in maintaining the five-day resolution standard

Business impact

  • The clean-up of the unapplied cash balances ($5 million of which was aged more than 360 days) corrected existing account balances for customers
  • By identifying and correcting the sub-system accounting issues, Genpact prevented the recurrence of additional aged items and enabled the implementation of a five-day TAT threshold
  • The redesigned processes created a controllership impact of $1.75 million

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