early 597 million people live in Latin America. What’s more, they account for nearly 630 million mobile phone connections. With mobile phones literally blanketing the region, it is clear that these convenient

hand-held devices represent the next big game-changer for local and global businesses alike. The well-known appeal of mobile phones is derived from their ability to provide connectivity anytime and anywhere. This is particularly true in Latin America where a challenging transportation infrastructure, for example, can often hinder individual mobility and where cell phone usage has been growing by leaps and bounds. In fact, statistics recently released by the International Telecommunications Union indicate that at the end of 2011, 20 (of 33) countries in Latin America and the Caribbean recorded more mobile-cellular subscriptions than inhabitants. The explosive adoption of mobile phones has transformed the way people communicate and connect with each other. It also is reshaping the way both individual consumers and companies conduct banking and commercial transactions.

Cell Phones Offer New Models for

By Juan Carlos LozanoRegion Head - Payments and Channels ServicesCiti Transaction Services

“Mobilizing” Money

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Guillermo Gamundi PouTreasury and Trade Solutions Sales Head Dominican RepublicCiti Transaction Services

In Asia, for example, Citi collaborated with a global leading beverages company to create a service that is revolutionizing how the truck drivers who deliver the company’s beverages to thousands of small retailers are collecting payments for those deliveries. Traditionally, the merchants paid the drivers with cash. Now, the drivers present store owners with their invoices using mobile phones. In turn, the merchants can review the bills and initiate payments for them by tapping a few buttons on their phone. In addition to eliminating the effort involved in physically collecting and then processing cash payments, plus the errors and security issues associated with them, mobile receivers collapse cash conversion cycles and provide faster access to funds. Citi is now adopting the solution in other markets, which will likely include Latin America.

ON-THE-GO BUSINESS BANKING Corporate banking also is going mobile, expanding traditional online banking services beyond cash managers’ desktop to their mobile phones. Today’s on-the-go multi-tasking executives are tethered to their mobile phones to keep their businesses running smoothly even when they are away from the office. Thus, it is no surprise that when surveyed, corporate treasurers indicate a keen interest in conducting and managing banking and trade transactions via their mobile devices. A Citi survey in 2011 revealed that corporate cash managers were particularly interested in using their phones to

CONVERTING PHONES TO WALLETS The highly developed mobile networks of Latin America have created fertile ground for services that turn mobile devices into “mobile wallets”, for instance. Citi, which has worked with mobile operators and technology companies around the world to develop ground-breaking mobile services, lentered a venture last year with a leading Latin American telecommunications company called Transfer. Starting in Mexico and eventually expanding into other countries in the region, when opening simplified bank accounts you gain the ability to activate Transfer, transfer money, withdraw cash from ATMs, make purchases in stores, receive payments and pay bills with your mobile phones, essentially putting a bank branch in your pockets.

MOBILE BUSINESS BANKING Exciting developments in the business-to-business arena also are creating more efficient ways of managing commercial transactions and information.

when a balance reaches a certain threshold or a major cash transfer hits their accounts. They can even check the status of letters of credit, associated amendments and shipping information. The CitiDirect BE Mobile application is carrier independent, supports smart phones and tablets, and is available in eight languages, including Spanish and Portuguese.

MOBILE BANKING WITH DESKTOP SECURITY Usability and security are the most-cited concerns of managers contemplating mobile access to their corporate accounts. Citi has overcome these concerns by deploying Microsoft technology that uses the same SafeWord token challenge/response system of the CitiDirect online service with SSL using 128-bit encryption. In addition, separate mobile user entitlements must be established, no data is stored on the mobile devices, and sessions time out after few minutes of inactivity. Citi’s mobile application also synchronizes with the CitiDirect platform, providing real-time access to account activity and information in one central location.

MOBILE BANKING IS HERE Mobile payments and banking services are in their infancy, but they are here to stay. Based on the early reception of these services, they also are expected to expand quickly. That’s good news for cash and financial managers looking to maintain a competitive edge in today’s quickly changing and globally influenced business environment.

view account balances and to approve and authorize payments for release when they are without computer access to their corporate bank accounts. In response, Citi was the first major global bank to offer a mobile banking service for corporations in 21 Latin American countries that extends the capabilities of its global online banking service, CitiDirect.CitiDirect BE Mobile was developed in-house by Citi’s Innovation Lab and allows CitiDirect users to perform the most popular corporate banking functions on their mobile phones via SMS or a mobile browser. Users can, for example, make transaction and balance inquiries, conduct payment searches, and authorize and release both single and batch payments. The payments capabilities are so popular, in fact, that within the first six months that CitiDirect BE Mobile was available, more than $1 billion in transaction volumes were processed using the service. Users also can receive alerts for key events, such as

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“The CitiDirect BE Mobile Application is carrier independent,

eight languages, including Spanish and Portuguese.”supports smart phones and tables and is available in