SmartStream has released new research showing that buy-side reconciliation is moving from a back-office control task to a core operational priority, as firms face tighter settlement cycles, growing data pressure, and increasing reliance on external providers.
Based on input from senior operations leaders across asset management and investment firms, the report highlights five realities now redefining reconciliation strategies. The findings suggest many firms still rely on outdated models even as market complexity continues to increase.
More than 70% of buy-side firms still depend mainly on end-of-day reconciliation, while 53% say timing differences and data mismatches are the leading causes of breaks. Only 18% operate with near real-time or intraday controls, leaving most firms exposed to delayed risk detection and shorter resolution windows.
The report points to five major issues: external data dependencies, the pressure created by T+1 settlement, the limits of batch-based reconciliation, weak third-party oversight, and the need for better data foundations before automation and AI can deliver full value.
One of the clearest conclusions is that reconciliation can no longer be treated as a retrospective process. Firms leading the shift are building always-on control frameworks that improve visibility, accelerate decision-making, and strengthen resilience.
Robin Hasson from SmartStream said trusted data foundations and real-time control are becoming competitive differentiators as buy-side firms navigate rising complexity and tighter timelines.
The message from the report is simple: firms that modernize reconciliation now will be in a far stronger position to manage risk, improve control, and operate at market speed.