Citigroup Global Transaction Services
®
Global Transaction Services
Kathy Lin
GTS Taiwan Head
April 13, 2005
Copyright © 2003. Citibank, N.A. All rights reserved. CITIGROUP and the Umbrella Device are trademarks
and service marks of Citicorp and its affiliates and are used and registered throughout the world.
Agenda
 Citigroup Global Transaction Services Overview
 Experience Sharing for Transaction Banking Management
2
Citigroup Global Transaction Services Overview
Global Transaction Service (GTS)
Mission Statement
To be the world’s leading provider of Cash Management,
Trade, and Securities Services to enable our clients to
manage their treasury needs, and financial and commercial
flows and assets.
4
GTS’ Role in Citigroup
Central to Citigroup’s Customer Strategy
 Superior Products & Services
 Global Platform
 Product Depth
Office of the Chairman
 Coordinated Relationship Management
Global
Consumer
Transaction
Services
Citigroup
Client
Structured
Corporate
Finance
Advisory
Cards
Consumer
Finance
Retail
Banking
Global
Corporate
and
Investment
Bank
Private
Client
Services
Global
Transaction
Services
Capital Markets
and Banking
Global
Investment
Management
Asset
Management
Smith
Barney
Private Bank
Life
Insurance
and
Annuities
GTS is An Integral part of the GCIB
Equity
5
GTS’s Role in Global Corporate & Investment Banking
Customer Relationship Management
Products /
Customere Group
Product Development
Glob al Fixed Income
GRB
FI
TTLC
A
C
B
F
D
Glob al Equities
ELC
A+B+C
E
G
Investment Banking
Product Revenue Total
D+E+F
G
EM Local Finance
H
K
I
J
H+I+J+K
Regional Sales + Trading
L
O
M
N
L + M+ N + O
GTS
P
S
Q
R
P +Q+R+S
A +H+L +P
C+F+K+O+
S
B + D+ G+ I+
M+ Q
E+ J + N+ R
A + B+ C + D+ E+ F + G + H+ I +
Total GCIB Revenue
J +K L +M +N+O+P+Q+R+S
Customer Revenue Total
The Business under GTS Coverage
6
GTS Coverage Model
PRODUCTS
Securities
Services
CLIENT
FUNCTIONS
CFO
Liability & Risk Mgt
Financial
Institutions
Regional Heads
LATAM
Cash
Management
ASIA
Corporate
EUROPE
Trade
CEEMEA
These services are distinguished by:
-A global footprint and platform
-Unparalleled breadth and flexibility
-The industry’s most extensive delivery
Relationship Mgt.
Sales & Marketing
Credit
infrastructure
7
GTS Geographic Footprint
Global Transaction Services services customers in over 100 countries, and has
over 17,000 employees
North America
EMEA
Employees = 4,184
Employees = 7,185
Asia-Pacific
Employees = 3,514
Latin America &
Mexico
Employees = 2,249
GTS Present
GTS Not Present
Global Total
Employees = 17, 132
YTD 2003 revenues
Note: GTS present includes countries where GTS does not have physical presence but generates revenues
8
GTS Geographic Footprint
2004 GTS FY Revenue - Total of $ 3,816 MM
North America
$846MM
Europe
$800MM
Japan
$73MM
CEEMEA
GTS Taiwan is ranked
7th among GTS countries
$700MM
from the view of 2004 Net Income
Latin America
$430 MM
Asia Pacific
$967MM
9
GTS Taiwan Revenue Source
1. Transaction Fee
2. NRFF – Net Revenue From Funds
Corporate
Customers
GTS
Funds
Flow
Treasury
Deposit
Balance
Deposit
Balance
Customer
Rate
Pool
Rate
Market
Base Rate
1.00%
2.75%
3.00%
Financial
Market
Spread = Pool rate – Customer Rate
NRFF = Deposit Balance x Spread
10
GTS Experience Sharing
GTS Experience Sharing
Sales
Process
Product
Development
m • Cash PM
a • Trade PM
n
• GSS PM
p
o
w
e
r
• Cash Sales
P
l
a
t
f
o
r
m
• Siebel CRM
Implementation
& Delivery
After Sales
Service
• EB Team
• CitiService
• CitiDirect
• IVR
• Trade Sales
• GSS Sales
• GRB RM
• FI RM
• FI Sales
• Corporate Potal
12
GTS Experience Sharing
Sales
Process
Product
Development
m • Cash PM
a • Trade PM
n
• GSS PM
p
o
w
e
r
• Cash Sales
P
l
a
t
f
o
r
m
• Siebel CRM
Implementation
& Delivery
After Sales
Service
• EB Team
• CitiService
• CitiDirect
• IVR
• Trade Sales
• GSS Sales
• GRB RM
• FI RM
• FI Sales
• Corporate Portal
13
GTS Experience Sharing
Product Development Strategy
 Value-added Solution Provider
 Participation in commercial and financial Funds Flow Proactively
 Innovation Success Transfer
 Product Offerings to Follow Economic Evolution, Local Deregulation and
Technology Transformation
 Seek good growth not bad growth (both revenue and profit margin) in a
sustainable way
14
GTS Experience Sharing
Product Development Strategy
Seller
TAKE
PURCHASE
ORDER
RECONCILE
ACCOUNT
INVOICE
RENDITION
MAKE
Make
PAYMENT
Payment
DELIVERY
OF GOODS
RECEIVE
GOODS
COLLECT
Collect
PAYMENT
Payment
RECEIVE
Receive
INVOICE
Invoice
CASH
CASH
MAKE
PURCHASE
Buyer
( ) in discussion
Int’l Sales
Cash & Trade
Int’l Purchase
Cash & Trade
Domestic
Purchase
Cash
Trade
Inward Remittance
Export Negotiation
Export Financing
AR Purchase
(Insurance)
X-border OR
PayLink
Domestic
Sales
Citiconnect SCM
GSS
ECB
(Agency & Trust)
DR
Vendor Financing
in China
Import Financing
CP / Guarantee
GTS Business
15
Participation in Cash Management Funds Flow - Taiwan
Blue - Active participation in flows or pools; Red - Plans to focus on this flow or pool
Green - Launched since 2002
ABROAD
Trade
X-border TransferCompany B
Pools
Flows
Company A
Suppliers
Remitter’s
Relatives
in PRC
Corporate
Balances
pensions
Customers social
payments
Tax
Paylink Custom Tax Payment
IPOs
Individuals Taxes
Foreign
Workers
Shares
Investments
Bank
Accounts
CitiConnect FT
Other
Liquidity Mgmt
IPOs
Insurance
Company
Foreign
workers
Bank A/Cs
at Home
Consumption
. Utility Bills
. Credit Cards
. Cash Expenses
. EFTs
Government
PRC
Remittance
X-border payment
for Foreign Workers
Personal Fixed Assets
& Debt Payments
. Mortgage
. Car
16
GTS Experience Sharing
Innovation Success Transfer – eBilling
eBilling is a a seller-centric internet solution for electronic bill presentment and
payment, Integrated with WLB to provide total solution of account receivable service
17
GTS Experience Sharing
Economic Evolution
Global Supplier Chain
1
2
Malaysia
3
Sourcing from
vendors in China &
Taiwan
GTS Experience Sharing
Technology Transformation: Integrated Mass Collection Service
Citibank
Networks
Collection Channels
ATMs
WLB
Local Bank
IBRS / ACH
Consolidated
Payment Info. Customer
Payer
Post Office Counter
/ Direct Debit
Convenience Stores
Checks
Open Invoice File
19
GTS Experience Sharing
Robust Sales Process
 Implement a world leading web-based Customer Relationship Management
system developed by Siebel to track sales performance
 Define individual sales goal to ensure that all sales goals surpass the country
product revenue
 Set benchmark for # of customer calls per week per sales
 Publish “top 10 deals win and loss” to increase peer competition and drive sales
momentum
 Launch selling campaign to accelerate revenue materialization
20
GTS Experience Sharing
Robust Sales Process: Siebel CRM System
Next
21
GTS Experience Sharing
MIS Implantation
Firm Pipeline
Targeting &
Planning
Robust Sales Process: Sales Cycles
Sales Cycle
01 Target Prospect
02
Needs Analysis
Proability %
Comment
0-10%
Very early days. Maintain a low prob.
Prob could be as high as 40% if we have the relationship, industry
10-40%
contacts, customer contacts, product suite etc
03 Solution Fit / Deal Review
20-45%
04 Deal Review Complete / Proposal Sent
30-50%
05 Negotiation
Up to 80%
06 Finalisation / Decision
Up to 80%
07 Implementation Pending
A proposal 'out there' with a sound basis of customer needs analysis
could put us in a situation to have as much as a 50% chance
By negotiations, the customer now has several providers responses
and there could be negative assessment to deal with OR position of
strength to capitalise. This status could have quite a discrepancy in
prob. HOWEVER, since the customer is clearly fulfilling a tender for
business it is likely that the prob will either be LOW or HIGH with little
middle ground
Generally as per 05 albeit that there might be less customer dialogue.
It is a chance however to increase probability by using the banking
relationship to 'influence' the decision. Again the probability should be
polemic - either high or low
100%
08 Active Implementation
09 Implementation Complete
10 Deal Lost
11 Prospect which did not materialise
All other deals 3-6 marked for deletion
12 due to error / duplication etc
We are assessing our ability to match the customers key requirements
with our product, operational and country capability. We could at this
stage obtain an increased probability on this basis
100%
100%
0%
0%
During this stage deal products may be decommited by the customer.
These deal products should be marked with a status of 'Decommitted'
and the probability set to 0%
0%
22
CitiDirect ® Online Banking
CitiDirect® Online Banking deliver international
corporate and financial institutions the most
secure, efficient and real time banking services
CitiDirect® Online Banking were presented as World
Best Internet Bank and World’s Best Corporate
Institutional Bank from Global Finance
23
CitiDirect ® Online Banking
Customer
Management
應收帳款管理
解 決 方 案
Liquidity
Management
資 金 調 度
解 決 方 案
Account Receivable
Account Payable
Management
END-to-END
END-to-END
應付帳款管理
解 決 方 案
24
CitiDirect ® Online Banking Today
6,000,000,000,000
4,000,000
Total Transaction Value in USD
Total Transaction Volume
140,000
Total Active Users
26,000
Corporations Use
100+
Currencies
90
Countries
21
Languages
18
Countries in Asia
1
Platform
25
Why CitiDirect ?
 Internet Advantage
 Access Account Information at everywhere and any time
 Real-time Account Information
 Enhanced Internal Operation Efficiency
 Easy to monitor transaction process and status
 Remove Cross boarder/region barries
 Simple System Installation and Automatic Update
 Download and install directly from website
 System Automatic Update
 Easier to Use
 Online Help and training
 Safest Internet Banking
26
Internet Platform
 Connect to the Internet


Thought Enterprise LAN/WAN to CitiDirect
Thought ADSL or Dial up to CitiDirect
Firewall
Enterprise Intranet
Taipei
DMZ
Firewall
www.citidirect.com
Enterprise Intranet
Hongkong
ISP
ADSL or Dial-up
Firewall
Modem
Enterprise Internal
Environment
CitiDirect
Server
Internet Service
Provider
Internet
Citibank
Backend System
27
All Payment Services on CitiDirect
 The One-for-All Payment Platform
 Local currency payment
 Local Wire Transfer via FISC: PayLink Vendor and PayLink IBRS.
 Local Check Payment: PayLink Check and PayLink PDC.
 Foreign currencies payment
 Cross boarder Fund Transfer for foreign currencies wire transfer.
 WorldLink Factory to issue foreign currencies checks.
 Book Transfer
 Internal fund transfer within Citibank Taipei’s accounts.
 Multiple Methods of Payment data input:



Manual Input field by field.
Pre-format Input from the Predefined library.
File Import from your ERP system
28
Advanced Security Mechanism
 Using Dynamic Password for user authentication
 SSL(Secure Sockets Layer) version 3
 128 bit session level Encryption
 Audit Report for Security Manager to monitor user activities
 Firewall using DMZ mechanism
 24hr Dual Systems Backup
29
Advanced Security Mechanism
 Payment authorization flow can be up to 9 * 9
 9 each level can setup to 9 authorizers
 To meets all levels and customers’ requirement.
 Your transactions’ approvals criteria can be setting by :
 By different payment products (PayLink Check, PayLink Vender…)
 By different payment methods (Manual input, Predefined input, File import)
 By different amount range
 By different company’s name
 By different accounts
 Or you can mixed above criteria
30
Advanced Security Mechanism
Security Mechanism
CitiDirect
Other Local banks *
User Sign-on
Dynamic Password, hard to
crack
Static Password, Easy to crack
& stole
Digital Signature Used &
Approved by MOF
Yes
Yes, but use the Local CA not
global standard.
SSL
128 bit V3
128 bit V3
Firewall using DMZ
Yes
?
Authorization flow maximum to
9*9
Yes
??
Using S/MIME to encrypt Mailed
Report
Yes
???
Anti-Hacker Certificate
Yes
????
Audit Report
Yes
????
24Hrs Dual System Online Backup
Yes
?????
31
GTS Experience Sharing
Customer Services
 Was established In 1997
 Provide One Single Contact Window & Right Answers Right Away
 Expedite The Resolution To Meet/Exceed Customer’s Expectation
Inquiry about :
Product Coverage :















Product Information
Account Services
Transaction Follow Up
Investigation On Requests
Bank Practices & Regulations
Fund Transfer
Account Information
Paylink Check/Payroll
Speed Collect
Import/Export
Foreign Exchange
Loan
Time Deposit
Electronic Banking/Internet Banking
Others …………...
As of 2003, CitiService inquiry scope covers 51 products about 800 events
32
GTS Experience Sharing
Investment On Customer Service
 Total Investment during 2002 ~ 2003 : NTD 35 millions (USD 1.2 millions)
 Investment in Systems/Infrastructure
-
Set up CTI (Computer Telephony Integration) System
Implement Exceller Systerm
Upgrade IVR (Interactive Voice Response) System
Increase toll-free service line capacity from 24 lines to 72 lines
 Investment in Manpower Resources & Training
- Improve service with investment on sufficient and qualified manpower
- 3-month pre-job training and CSO qualification certification
- Provide weekly 2-hour training
 Service Quality Certification
- Acquired ISO9001:2000 certificate in 2001 and became the first financial
institution call center with ISO certification in Taiwan.
Next
33
CitiService Officers’ Working Environment
Monitor
headphone
A mirror to remind
the CSO to keep
smiling
To provide
customers with
the most swift
services, every
CSO has 2 PCs
and a 21” CRT
monitor
34
Introduction to CTI System :
(Computer Telephony Integration)
Showing The:
Keying Account No.
Showing the
Customer Name
when keying
Account/base#
028486
Choosing
Language
5028486008
TESCO STORES (TAIWAN) CO
PLATINUM
Inquiry Item
Thru IVR
System
PIN Verification
Status:
Green: Verified.
Red:Not Verified.
Dial “O” to go to Customer
Service Representative.
35
Introduction to EXCELLER System
(Customer Profile Management)
 Log System for Customer’s
Inquiry/Request.
 Thru this System, CSR can pass the
cases to operation for further
investigation.
Customer’s
Profile
 Customer’s Profile Maintenance.
 Customer’s Inquiry Track System.
Including: 51 products/799 events.
 Customer’s Inquiry History Maintenance.
 Analysis Report Generation:
 Showing Customer’s Behavior.
Records for
Customer’s
Each Inquiry
 Providing the Special Service according
to Customer’s behavior.
 Reviewing Internal Process for
Improvement.
36
Upgraded IVR System
 72 Service Lines - Provide quick and easy access to our 24-hour phone inquiry
service
 High Customer Information Security - After selecting system language,
customers have to input account / base number and pin number for
identification; then system will transfer the call to designated Customer Service
Officer.
 Provide Useful Inquiry/Fax Functions :
* Account Statement Inquiry
* Indicative Exchange Rate
* Account Statement Fax
* Incoming/Outgoing Remittance Advice Fax
* Cash/ Trade Form Fax (16 Items)
37
GTS Experience Sharing
Customer Services Directions
 Implement customer segmentation
- Differentiate customer service based on revenue impact
(Platinum, Gold, Priority, regular and walk-in customers)
 Strive for call reduction/ alternative channels offload to better utilize the resources
- Launched Corporate Portal to offload the volume of calls
- Promote IVR/Internet banking/fax service
 Conduct Citi-tour and service review to ensure customer satisfaction
- 6 CitiTour and 23 onsite service reviews for key customers were done in 2003
- Achieve 100% VOC in 2003
 Support account / transaction management and cross-selling campaign
- Pliot anchor calls for ELC
- FI bank volume promotion
- Walk-in LC advising customer cross-selling
Next
38
GTS Experience Sharing
Differentiated customer service
 Premium Service for only 25 Customers
-
The inquiries will be served by the designated Customer Service Officer (CSO)who are the most
senior and professional bankers
Key Performance Indicators
Description
Satandard Goal
Platinum Goal
Service Level
% of Calls answ ered w ithin 15 sec. (3 rings)
> 85%
> 90%
% of Calls Abandoned
% of Calls hung up before answ ered by CSO
<3%
< 1.5%
Average Speed of Answ er (Sec.)
Average customer w aiting time before call answ ered
< 20 sec.
< 15sec.
% of Inquiries Answ ered at Tim e of Call
% of Inquiries answ ered on-line (quick kill ratio)
> 76%
> 80%
% of Resolved Investigations Tim ely
% of Investigation case resolved w ithin standard operation time
> 99%
> 99.5%
% of Calls Answ ered by designated CSO
% of Investigation case resolved w ithin standard operation time
No Desiganted CSO
> 85%
 Proactive End-to-End Transaction Follow Up and Investigation
-
Designated CSO will familiarize with customer’s inquiries and transactional patterns to deliver better
service quality, follow up on investigation cases to ensure timely and accurate resolution, and help to
expedite the overall process on urgent or special cases.
 Continuous Customer Communication and Ensure Satisfaction
-
Perform regular analysis of customer inquiries and transactions to understand customer needs.
Conduct semi-annual customer survey to ensure customer satisfaction.
Periodical customer visit to facilitate mutual cooperation.
39
GTS Experience Sharing
Corporate Internet Portal Roll-Out
Corporate internet
portal is a webbased customer
service channel
enabling
customers to
retrieve real-time
information of
their accounts &
Transactions
40
GTS Experience Sharing
Highlights of Portal Functionalities
E-Statements & Advices





Cash
Foreign Exchange
Loans
Deposits
Trade, Guarantees
Customization
 Outgoing/Incoming
Remittance E-mail Alert
 FX Watch List
 User Profile Maintenance
 Page View Customization
Other Useful Tools
 Transaction Forms Download
 Citigroup Market Research
41
GTS Experience Sharing
Customer Services
Stages of Implementation
Stage 4
Stage 3
Stage 2
Stage 1
Process Management
Achieved:
1997
Achieved:
1997
Benchmark Focused:
- Pro-active approach
- Internet based interface
- Experts in Value-Added
- Full Product Coverage
Services
- Automation of Repetitive - Fully integrated as
Inquiries
part of the Business
- Segmentation
System
- Value-Added Service for - Shortest Turnaround
Top Tier Customers
Time in the Market
- Increased Capacity for
Embedded Bank
Strategy.
Customer Focused:
Call Management
Internally
Focused:
Database Management
Customer Satisfaction
Management
- Tracking System
- Pre-defined Standards
- Quick Answers
- Inquiries management
- Root/ Cause Analysis
Achieved:
1998
Achieved:
1999
Achieved:2001
Service
Management
S
t
a
g
e
5
42
GTS Experience Sharing
Customer Services
Next Stage (Stage 5) - Service Management
 Objectives
-
Improve Management of Customer Expectation, Customer Service Issue, and Customer
Satisfaction
-
Strengthen customer relationship and building loyalty
-
Support relationship manager, Product & Sales group to grow business
-
Quantify the the value of the service management program by linkage to revenue and cost
reduction goal
 Key Focuses
-
Recognize the need for Customer segmentation and tiered service
-
Accommodate key customer's service requirements
-
Off load simple enquiry to IVR/internet banking to better utilize the resources
-
Cross selling opportunities
-
Improve service and reduce cost
43
GTS Experience Sharing
GTS
Fundamental
Customer
Satisfaction
 Revenue Growth
 Market Share Increase
Robust Sales
Process
Product Innovation
 Active Customers Growth
44
Q&A
Copyright © 2004. Citigroup,Inc. All rights reserved. CITIGROUP and the Umbrella Device are trademarks and service marks of Citicorp or its affiliates and are used and registered throughout the world.
GTS Experience Sharing
Product Development Strategy
GTS helps treasurers add more value by rethinking the financial value chain
Results:
•
Determine and manage
cash positions with real
time information
Domestic Collections
Outsourced Receivables
Centralised Collection Services
Invoice Management Services
CitiDirect® Online Banking
Global Trade Services
Order
Invoice
Rendition
Goods
Delivered
Collect
Payment
Cash
(Both Financial & Information Flows)
Pay
Reconcile
Goods
Received
Receive
Invoice
•
•
•
Lower transaction costs
Reduce processing time
Integrate commercial &
financial services into existing
platforms
Enhance supply chain
management
Minimize risk
Minimize Fraud
Global Trade Services
WorldLink®
•
Optimize Working
Capital
•
Simplify
receivables
management
process
Improve Days
Sales Outstanding
•
•
Integrate
commercial &
financial services
into existing
platforms
•
Accelerate
collection period
•
Minimize float
Purchase
Results:
•
•
•
Results:
Multicurrency Transaction Services
Automated Clearing House (ACH) PaymentsFunds Transfer
Mass Payments Services
Multi-banking
Netting
47
GTS Experience Sharing
Economic Evolution: e-Documents
Letters of Credit
China Buyers
Export
Proceeds
STAGE 1: PRE-SHIPMENT
Shipping /
Procurement Dept.
Relocation to China
Company A
STAGE 2: DOCS PRESENTATION
1
1
E-LC advising
Trade e-Statement
LC/Bill information
2
Document Outsourcing
With 2
Image and Status
of preparation
-> Reduce DSO
2
STAGE 3: POST-SHIPMENT
48