SmartStream adds agent-based AI to reconciliation tool

SmartStream has integrated agent-based artificial intelligence into its reconciliation platform to automate routine matching, manage exceptions and accelerate investigative workflows across financial data.

The update embeds autonomous software agents into the vendor’s reconciliation software. The agents are programmed to identify transaction patterns, perform automated matches, flag anomalies and recommend or carry out resolution steps. They process structured feeds and ledger records and route unresolved items to human teams while maintaining a traceable record of actions.

The agents can execute repeated tasks without manual intervention, including aligning payments to statements, applying business rules for netting or collateral, and reconciling multi-currency positions. They are designed to learn from historical fixes so rules and suggested handling evolve as agents observe how past exceptions were resolved.

Integration work has focused on connecting the agents to existing data sources and the platform’s workflow engines. Agents can be configured to follow firm-specific control policies and audit requirements and they log decisions to support compliance checks and internal review.

The vendor emphasises configuration rather than coding so operations teams can adjust agent behaviour through rule sets and parameters instead of bespoke software development. The platform supports automated escalation when predefined thresholds are met and can generate suggested journal entries or clearing actions for review.

Additional functionality includes reporting on trends in exception types and resolution times and support for role-based approvals so any automated action that affects ledger balances can be reviewed or signed off according to a client’s governance model.

Reconciliation is a core back-office function for banks, asset managers and corporate treasuries and involves matching internal records with external statements and counterparty reports to ensure accurate balances and transaction records. Firms have sought ways to reduce manual effort in handling exceptions and adjusting entries to meet operational and regulatory requirements.

In a statement, SmartStream said the agent-based capabilities are intended to scale reconciliation operations while preserving audit trails and policy controls required by finance functions.