Treasury and Trade Solutions
Integration 2.0
Rene Schuurman
Global Market Management Channel Services
Citi Treasury and Trade Solutions
rene.schuurman@citi.com
Ashish Chaughule,
Global Product Manager for CitiConnect for SWIFT,
Citi Treasury and Trade Solutions
Ashish.chaughule@citi.com
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
1
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
Impact of increased
regulations requires
structured and
controlled processes.
Difficulty managing
operational and audit
processes
Regulatory
Reporting
2
Technology as a Building Block to Drive Treasury Efficiency
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
Functions Centralized
In-House
Bank
• Internal Bank Accounts
• Accounts Receivable
• Accounts Payable
• Accounting
Shared
Service
Center
Commissionaire
Structure
• Interco Payments
• Interco Collections
• Interco Netting
•
•
•
•
Re-invoicing
Center
Cash Visibility
Cash Pooling
Bank Relationship
Interco Funding
• FX Management
• Interest Management
• Long-term Funding
Centralized
Treasury
Operations
Decentralized
Treasury
Treasury Flows
3
Netting Center
Degree of
Centralization
Commercial Flows
Treasury &
Commercial Flows
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
4
Sustain transactional growth
Continued investment
Themes
Simplify service offering
Reduce complexity and streamline
transactional flows
Diversify CitiConnect
Enable CitiConnect for
cross-product service offerings
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”
5
TTS Digital Strategy
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.
Macro-Trend
TTS Digital Strategy
Macro Economy
Drive competitive
Low interest rate environment driving the
need to create new fee based services.
differentiation
through innovative
digital products.
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.
6
Effectively leverage
our global scale
to capture and digitize
financial flows.
Enable our clients to
realize greater
organizational and
commercial
value.
TTS Strategic Priorities
Expand channels and extend
reach through mobile
technology
Deepen connections
and bridge organizational
gaps through social
collaboration tools
Optimize business
performance for Citi and
clients
through rich
data and analytics
Deliver private cloud
platforms and products that
enable channel & device
expansion, and reduced cycle
times
Integrated Value of Citi’s Access Channels
Tablet
1) Prepare
CFO
5) Review/
Analyze/ Inquire
Accounting
2) Initiate
File
Mobile
Treasury
Online
Online
Accounting
4) Reconcile
File
7
Treasury
3)
Approve/Release
Transactions
Mobile
Tablet
File Format Standards – Selection Methodology
Citi offers a wide range of message and file formats to satisfy corporates’ needs.
Treasury Payments
What format is
right for the
job?
Vendor Payments
& Collections
SWIFTNet FIN
MT101, MT210
SWIFTNet FIN
MT format family
SAP IDOC, ANSI X12
EDIFACT (PAYMUL / DIRDEB)
Bank Flat File, Custom formats
Earlier industry
standards and bank
proprietary formats
ISO 20022 XML
pain.001 / 008
ISO 20022 XML
camt.052 / 053 / 054
Statements &
Reconciliation
EDIFACT FINSTA
BAI2, SAP MT940/MT942
Custom formats
SWIFTNet FIN
MT940, MT942
8
ISO 20022 XML
format family
Earlier industry
standards and bank
proprietary formats
SWIFTNet FIN
MT format family
Case Study – CitiConnect ERP Integrator
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.
SAP ERP
Payment File
Supor
Core
Applications
CitiConnect
ISO 20022
Citi ISO XML
Template
“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.
9
Case Study – CitiConnect for SWIFT
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
“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
10
Case Study – CitiConnect for Files (ISO 20022 XML & SWIFT)
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
SAP ERP
Payment File
CitiConnect
ISO 20022 XML
Account Statement File
“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.
11
Summary
The industry strives to satisfy the demand and address the
challenges of corporate-to-bank integration through
standardization
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
Together we can make the difference, partner on initiatives and
elevate the corporate-to-bank integration to the next level
12
Why Citi?
 Supports 1,200+ Shared Service Centers
 Unparalleled Payments and
Receivables product set
through single channel
 300+ Corporates connected via SWIFT
 #1 in SWIFT volumes
 Processing agility and capacity
for large volumes
 ISO 20022 XML messages
generating 25% of all file
volumes
 Fast ERP integration
 Cost efficiency of single BIC
connectivity to all Citi
branches
 Advanced reporting solutions
for straight-through
reconciliation
 Partnering with key providers
13
Unmatched
Experience
Core
Strength
Drive to
Innovation
Global
Reach
 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
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