In the financial services industry, your ERP system needs to be much more robust than that average small to mid-size business ERP. Your 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. This is why those in the industry need to specifically look for financial services ERP to meet their unique and specific needs.
There are many different companies that need financial services ERP, from banking institutions to credit unions, mortgage brokers and even insurance companies. These financial sectors need heavy accounting functions and the ability to comply with industry regulations and audits. Listed below are three aspects of financial services ERP that are especially helpful.
When it comes to the financial sector, complying with regulations is extremely important. Your customer’s data needs to stay on lock down 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 you aren’t scrambling to find the data.
- Strong Accounting Functions
Obviously, if you’re business revolves around financial management, you’re going to need stronger accounting functions than any average business. Financial services ERP offer multicurrency functions, multiple books, advanced allocations, financial planning, built-in security, rebates, taxes, asset management and many other features. While other system just have the basics, financial services ERP covers every accounting function needed.
When your main focus is handling customer’s money, transparency is key. You need to be able to enforce and ensure that every employee is following companywide standards. By having this type of visibility, you can increase customer loyalty because they feel safe when your company is able to respond efficiently.
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.