The ACH Compliance & Risk Management Challenge
Risk Manager™ Reporting & Analytics
Stay Compliant. Reduce Costs. Grow Revenue.
The ACH Compliance & Risk Management Challenge
Financial institutions face constant pressure to grow revenue while navigating a highly regulated and competitive environment.
Having a well-structured and effective ACH risk management program is both sound business practice and a regulatory requirement. Key oversight bodies include the National Automated Clearing House Association (Nacha), the Office of the Comptroller of the Currency (OCC), the Federal Trade Commission (FTC), or the Federal Financial Institution Examination Council (FFIEC).
Their minimum requirements include:
- Organizing all ACH origination and return transaction activity, including that of originators and third-party processors.
- Reporting transaction and return activity accurately, along with other critical metrics.
- Monitoring and proactively managing originator risk by identifying high-risk
originators for exposure management.
The Burden of Compliance
Historically, meeting these requirements was labor-intensive and costly. Financial Institutions had to dedicate significant internal database and software engineering resources to:
- Extract and detangle ACH transaction data from core system providers.
- Match returns to originations and group transactions by originators.
- Detect originators nested under third-party payment processors.
Once this is done, FI’s then had to develop and maintain reports to meet constantly evolving internal and external oversight requirements, all while simultaneously managing originator risk across the portfolio.
The hard costs to develop and maintain such a program can easily run into millions ofdollars. Reporting in this environment is often a spreadsheet based, manually intensive (aka error prone) process. Not to mention the opportunity costs of IT resources and analysts whose time can be better spent on growth strategies. Painful to say the least.
Affirmative to the Rescue
Implementation of ACH Risk Manager ™ will meet your regulatory requirements and more. We will organize your transaction data, matching returns and aggregating transactions to your primary originators and nested third party originators. In most cases, we source transaction data directly from the FED, bypassing the complexity of core system extraction. However, as a core-agnostic solution, we are also able to work with your core to get your transaction data.
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Ready-to-Use Reporting
Once we organize your data, we will provide you with a beautiful set of reports to meet
your ACH risk management needs. We offer a core reporting package that is ready out
of the box to meet your basic requirements…
- ACH Origination Volume & Amount: Track credit and debit transaction volumes and amounts over time.
- Origination SEC Code Utilization: Visualize totals by SEC code in an easy-toread pie graph.
- Origination & Return Variance Reports: Monitor changes in dollar amounts and volumes over time.
- Top Originators & Return Metrics: Identify high-volume originators and those with the highest return values and rates.
- Detailed Reports: Access spreadsheet-style reports for origination and return data, including daily breakdowns and variances.
Beyond these ready-made reports we have developed dozens of others based on our experience with regulatory requirements and client best practices. And ACH Risk Manager™ goes beyond reporting:
- Alerts: Receive automated notifications based on tolerances you set for a variety of portfolio and originator activities.
- Industry Benchmarking: Compare your origination and return trends against industry peers using our proprietary database. How do your trends in origination and returns compare with your peers? We can answer that.
- Predictive Analytics: Leverage our machine learning capabilities to proactively identify high-risk originators in your portfolio.
- ATI Originator Risk Grades™ enable accurate risk assessment and exposure monitoring. They will quickly become an essential tool for originator reviews and managing exposure limits.
Return on Investment
Our clients report a return on their investment in our software to be $300,000 to over $1MM annually. This is direct savings associated with costs for internal software development, data support, manual analysis, and report management. An investment in ACH Risk Manager™ streamlines compliance and risk management, enabling your team to focus on strategic initiatives, relationship development, and growing your treasury services business.
We look forward to becoming your trusted partner for ACH Risk Management.
Stay Compliant. Reduce Costs. Grow Revenue.