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Rene Schuurman Global Market Management Channel Services Citi Treasury and Trade Solutions [email protected]
Integration 2.0
Treasury and Trade Solutions
Ashish Chaughule, Global Product Manager for CitiConnect for SWIFT, Citi Treasury and Trade Solutions [email protected]
The Digital Age, focusing on Integration
• Information drives innovation and growth
• Information leads to greater insight, higher customer satisfaction, accelerates time to market, helps to open new opportunities, and enables you to remain competitive
• Information is a key strategy component for every organization
• And integration is pivotal to deliver on the digital age promise
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Corporate Technology Challenges
Corporations operating in a de-centralized technology environment on a regional or global basis encounter challenges in optimizing cost and operational efficiencies within treasury.
Decentralized Tech Environment
The plethora of different standards and connectivity protocols result in time consuming and costly bank integrations
Significant budget is required to manage multiple ERP Platforms
Multiple Banking Relationships
Current Corporate to Bank landscape is complex resulting in higher operational cost
Multiple H2H Connections Multiple E-Banking Applications
Regulatory Reporting
Impact of increased regulations requires structured and controlled processes.
Difficulty managing operational and audit processes
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Technology as a Building Block to Drive Treasury Efficiency
• Cash Visibility • Cash Pooling • Bank Relationship • Interco Funding
Decentralized Treasury
Centralized Treasury
Operations
Commissionaire Structure
Re-invoicing Center
Netting Center
Shared Service Center
In-House Bank • Internal Bank Accounts
• Accounts Receivable • Accounts Payable • Accounting
• Interco Payments • Interco Collections • Interco Netting
• FX Management • Interest Management • Long-term Funding
Treasury Flows Commercial Flows Treasury & Commercial Flows
Degree of Centralization
Functions Centralized
Use technology innovation as an opportunity to build centralized structures that provide a strong foundation to drive efficiency while enhancing control for long-term sustainability of the organization
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Connectivity Trends
Client Trends Reduce Total Cost of Ownership
– Connectivity is viewed as a commodity service – Budgets for bank integration under great pressure – Clients are price-buying
Reduce number of banking relations and bank interfaces – Desire for fewer connectivity solutions that provide access to
more services – Turn-key integration solutions for TWS and ERP
Need for real time and transparent data – Immediate status and account information – Switch from receiving basic updates to detailed transaction
information to support reconciliation
Bank Trends Concentration on online, SWIFT and file based solutions
– Connectivity solutions become enablers – Products becoming comprehensive offerings including treasury,
cash, liquidity, trade and commercial cards
Migration from proprietary development to industry collaboration – Simplification through standardization of formats, protocols,
security solutions – Multi Bank Transaction Initiation
Third Party Trends Seeking partnerships and alliances with banks and clients
Themes
Sustain transactional growth Continued investment
Simplify service offering Reduce complexity and streamline
transactional flows
Diversify CitiConnect Enable CitiConnect for
cross-product service offerings
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Internet of Things (IoT)
Internet of Everything (Cisco),
Industrial Internet (GE Software),
Industry 4.0 (Siemens)
Machine to Machine (M2M) connectivity across the internet
“Any machine or device connected (via fixed wire or wireless communication) to the internet & being able to transmit information in one form or another”
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Macro-Trend
Macro Economy
Low interest rate environment driving the need to create new fee based services.
TTS Digital Strategy
TTS Digital Strategy
Optimize business performance for Citi and
clients through rich
data and analytics
Expand channels and extend reach through mobile
technology
Deepen connections and bridge organizational
gaps through social collaboration tools
Deliver private cloud platforms and products that
enable channel & device expansion, and reduced cycle
times
Regulation
Transparency requirements driven by regulations driving the imperative to
provide more standardized & granular data.
Competition
Banks & non-traditional competitors not subject to the same regulations
expanding into transaction banking & pricing to win.
Globalization
Automation, standardization and centralization across banking
ecosystem; clients adopting new channels with end-to-end processing.
TTS Strategic Priorities
Drive competitive differentiation through innovative
digital products.
Effectively leverage our global scale to capture and digitize
financial flows.
Enable our clients to realize greater
organizational and commercial
value.
Citi’s global scale, combined with a commitment to a digital strategy, leveraging disruptive market trends, has made achieving a more efficient cash & trade management model more feasible & scalable than ever before.
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Integrated Value of Citi’s Access Channels
1) Prepare
2) Initiate
3) Approve/Release
Transactions
4) Reconcile
5) Review/ Analyze/ Inquire
Tablet
Mobile
Mobile
File
Online
Online
File
Tablet
Accounting
Treasury Accounting
CFO
Treasury
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File Format Standards – Selection Methodology
Citi offers a wide range of message and file formats to satisfy corporates’ needs.
What format is right for the
job?
Treasury Payments SWIFTNet FIN MT101, MT210
Vendor Payments & Collections
SAP IDOC, ANSI X12 EDIFACT (PAYMUL / DIRDEB) Bank Flat File, Custom formats
ISO 20022 XML pain.001 / 008
ISO 20022 XML camt.052 / 053 / 054
EDIFACT FINSTA BAI2, SAP MT940/MT942
Custom formats
SWIFTNet FIN MT940, MT942
ISO 20022 XML format family
Earlier industry standards and bank proprietary formats
Statements & Reconciliation
SWIFTNet FIN MT format family
SWIFTNet FIN MT format family
Earlier industry standards and bank proprietary formats
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Case Study – CitiConnect ERP Integrator
“With Citi’s ERP Integrator solution, we have fully streamlined and automated our payment processes, resulting in immediate and ongoing cost savings. The successful and timely implementation would not have been possible without the expertise and experience of the team, and the flexibility of Citi’s implementation approach.”
Mr. Bo Xu CFO
Zhejiang Supor Co. Ltd.
ISO 20022
Payment File SAP ERP
Core Applications
Supor
CitiConnect
Citi ISO XML Template
Zhejiang Supor Co. Ltd (‘Supor’) is the leading cookware manufacturer in China and the second largest cookware manufacturer worldwide. In 2011, Supor centralized payments and collections into a Shared Service Center (SSC) for full automation leveraging its SAP installation. As well as secure and automate the transmission of payment instructions, against a very aggressive timescale.
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Case Study – CitiConnect for SWIFT
“At Caterpillar it is vital to understand our exact funding needs, view our cash positions across all our accounts, and to be able determine our longer term liquidity strategy. SWIFT, and Citi’s CitiConnect channel have been instrumental in supporting our needs. As a result, operational savings and efficiencies have been realized by the Treasury team”
Assistant Treasury Manager Caterpillar
Caterpillar Inc., is an American corporation which designs, manufactures, markets and sells machinery and engines and sells financial products and insurance to customers via a worldwide dealer network. Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Caterpillar uses their Treasury Workstation to monitor their accounts and manage their treasury payments worldwide using the SWIFT network.
CitiConnect
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Case Study – CitiConnect for Files (ISO 20022 XML & SWIFT)
“Now we’re importing bank statement information in real time for more than 330 bank accounts in all countries and regions in the world”
Senior Director of Global Cash Management Merck & Co.
Merck was looking for a solution that could establish universal cash processes across its network of 73 countries. The banking solution had to meet Merck’s plan to implement a single global ERP system and migrate payables and collections to shared service centers. Merck’s unified, standardized banking platform provides the firm with a single view of cash which has enabled greater control over global cash balances and improved liquidity management and forecasting
Payment File CitiConnect
SAP ERP
Account Statement File
ISO 20022 XML
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Summary
Solutions such as SWIFT Corporate Access and the SAP Financial Services Network emerge as strategic initiative for the banks and service providers to establish closer relationships with corporate customers
The industry strives to satisfy the demand and address the challenges of corporate-to-bank integration through standardization
Together we can make the difference, partner on initiatives and elevate the corporate-to-bank integration to the next level
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Why Citi?
Unmatched Experience
Core Strength
Global Reach
Drive to Innovation
Supports 1,200+ Shared Service Centers
300+ Corporates connected via SWIFT
Fast ERP integration
Cost efficiency of single BIC connectivity to all Citi branches
Advanced reporting solutions for straight-through reconciliation
Partnering with key providers
Unparalleled Payments and Receivables product set through single channel
Processing agility and capacity for large volumes
Consultative customer-centric approach
90 countries – the widest footprint in industry, supported through both CitiDirect BE and CitiConnect channels
130+ currencies Local presence and
experience, local language support
#1 in SWIFT volumes ISO 20022 XML messages
generating 25% of all file volumes
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