ACL Success Story – Banking & Finance – Randolph-Brooks Federal Credit Union

2011-03-01

Randolph-Brooks Federal Credit Union

“We’re using Analytics Exchange to save time, money and eliminate manual processes. It has already helped us to build stronger relationships throughout the organization.”

Chris Waner, CIA, CTGA, Internal Auditor, Randolph-Brooks Federal Credit Union

Customer Profile

Ranked in the top 25 of nearly 7,700 U.S. financial cooperatives, Randolph-Brooks Federal Credit Union has more than 320,000 members and total assets exceeding £2.26 billion. The cooperative was originally chartered in 1952 to serve personnel at Randolph Air Force Base in Texas. RBFCU has since expanded to include more than 1,700 select groups, 13 chartered areas and 35 branch locations throughout South Central Texas.

Objectives

With a 10-person team that includes several longtime ACL technology users, the RBFCU Internal Audit department understands the power of data analytics. Knowing the value of implementing full-population data tests, they were eager to drive additional efficiencies throughout the organisation. They were looking for a solution that equipped both technical auditors and employees less familiar with data analytics to perform automated testing.

The Audit department was also looking to develop a systematic process for communicating, tracking and escalating exceptions across multiple business divisions and branches. RBFCU ultimately chose ACL Analytics Exchange TM 2 (AX) for its exception management, secure central repository, and continuous auditing capabilities.

Implementation, Planning and Experience

With on-site support from ACL Professional Services, RBFCU installed Analytics Exchange and began developing analytics, starting with an ID verification project for the Compliance department. As a requirement of the U.S. Federal Bank Secrecy Act, RBFCU must verify identification data in all new member applications. The current ID verification system flags details that don’t match or require further investigation and produces a lengthy report. Employees then manually review these reports to find the exceptions – a process that required up to 17 hours per day (or the equivalent labor of 2.5 full-time employees). With AX, the Audit team developed an analytic that extracts the data file and electronically reviews each and every record. The automated test runs in minutes and can be reviewed by one employee in less than an hour.

For the Consumer Lending department, the Audit team used ACL Analytics Exchange to create an up to date loan verification test. The analytic runs daily to compare published rates against issued loan rates, including applicable discounts (based on additional product purchases, for example). Previously, auditors had to spend up to two hours each day combing through paper reports to spot potential errors or anomalies. Now, the automated analysis runs daily and immediately identifies exceptions.

Other key Analytics Exchange projects include a CD rate analysis that ensures daily interest rates are entered correctly into the system. The analytic identifies errors before they have been issued to a member and are more difficult to correct. Another ACL-powered project helped the Accounting department to merge data from two disparate systems. Employees were printing a report from one system and manually entering data into the second system, which took at least four hours a day. ACL Analytics Exchange now pulls a report and manipulates the data to create an import file that works across both platforms. It takes just five minutes and has saved countless hours of staff time and frustration.

Results

Randolph-Brooks Federal Credit Union uses ACL Analytics Exchange to:

• Save significant time and labor costs
• Achieve complete data population testing
• Gain enhanced trust across internal business units
• Enable departments across the organisation to effectively view and follow up on exceptions

By helping the Compliance, Accounting, Consumer Lending, Phone Center and Investments divisions cut costs and save valuable time, the Audit department has built stronger relationships throughout the company. The team is promoting best practices and offering strategic assistance, versus solely identifying control weaknesses.

With the AXTM Exception module, Internal Auditors also have a reliable way to efficiently distribute and track exceptions. There’s a clear audit trail that makes it easier for auditors to manage potential issues, instead of spending hours searching reports for exceptions. Each division or branch can log-on, view applicable data and tackle exceptions within the credit union’s internal five-day deadline.

Next Steps

The Internal Audit department recently completed a two-day, on-site workshop with ACL Training. This hands-on experience reinforced key principles and helped the team solidify its ability to script analytics, schedule automated testing, and plan future projects. The instructor used actual credit union data to ensure the training was relevant, while giving participants the ability to see the complete lifecycle (from development to AX Exception tracking) of specific analytics.

In the next several months, the audit team will fully roll out the AX Exception module and the team will continue developing analytics that promote efficiencies and automate vital processes for a variety of internal departments. They also plan to apply ACL analytics to pinpoint duplicate payments, potential cost recoveries, and perform accounts payable and general ledger tests. Wherever there’s an opportunity to eliminate manual labor and implement full-coverage data analysis, RBFCU will use ACL Analytics Exchange to build a stronger, more streamlined business.