Assets are one of the most critical elements in determining the financial strength of a company and their availability and condition directly affects the efficiency of operations. Therefore, it is imperative that organizations have accurate and reliable information relating to their assets. In order to keep the asset records accurate, it is recommended to conduct regular verification of assets. However, reliable asset verification depends on the accuracy of asset data. Which means that accuracy of asset records and accuracy of physical verification are inter linked. Many organizations that we interact with are trapped in the causality dilemma not knowing which problem caused the other and which one to target first for an efficient asset life cycle management.
In case of a Banking, Financial Services and Insurance (BFSI) company, the business operations are managed from diverse locations and hence the assets are spread geographically making the asset verification and tracking even more challenging. Additionally, as the branches and regional offices do not have a dedicated asset manager, the asset management process gets folded under the operations team that is already occupied with other high priority responsibilities. As asset transactions at individual branch do not get recorded and updated regularly and timely in the central asset database, it negatively impacts the accuracy of asset verification.
We believe that conducting regular asset verification is the only solution to asset tracking problem. However this is better said than done as the task of regular verifications can be daunting for a BFSI company given the large number of branches and offices. Furthermore, many of the Banking, Financial Services and Insurance (BFSI) companies still depend on manual asset verification and tracking techniques, which is entirely inadequate to deal with the scale at hand because it:
- Takes far too long
- Calls for excessive human effort
- Costs significantly more
- Lacks comprehensive audit trail
- Provides inaccurate report
Our study highlights and addresses some of the key challenges and solution to effectively control the enterprise wide fixed assets.