Citi has announced the launch of its new global solution, Citi® Virtual Accounts, which allows clients to segregate their balances under a single physical account, providing enhanced visibility, control and efficiencies through centralized payments, receivables and liquidity management.
Rollout begins in Western Europe
The in-house solution is live with clients in Western Europe covering 16 markets and 37 currencies, with the U.S. and Asia to follow. Citi comments included:
- Manish Kohli, Global Head of Payments and Receivables, Treasury and Trade Solutions, Citi, commented: “Citi’s investment in proprietary virtual account technology exemplifies our commitment to providing clients with simple, global and digital solutions. Citi’s virtual account solution is a strategic enabler for corporate treasuries of both our traditional and digital clients, providing a platform for benefits such as bank account rationalization and automated reconciliation.”
- Mark Smith, Global Head of Liquidity Management Services, Treasury and Trade Solutions, Citi added, “Citi’s virtual account solution is designed to be fully adaptable to our clients needs, allowing treasurers to tailor banking structures to their unique requirements. With a centralized view of real-time cash positions, corporate treasuries can optimize liquidity management and make more informed funding decisions.”
Supports On-Behalf-Of model
Citi’s virtual accounts solution allows clients to individually view transaction activity, manage online banking entitlements and generate virtual account statements. Virtual account structures can be configured for a single entity or support the “On Behalf Of” model of an in-house bank. From an accounts receivables perspective, clients can harness additional transparency by using Citi® Virtual Accounts in conjunction with Citi® Payer ID Accounts to further automate the reconciliation process. In addition to servicing treasury needs, the capabilities can also be used as a business enabler for emerging client segments including digital marketplaces and the sharing economy.
Petra Rosenauer, EMEA Treasurer of Flex Ltd commented: “Citi’s virtual account solution differentiated itself by allowing Flex to convert existing Citi physical accounts into virtual accounts. We’re very pleased with the solution and are moving into the second phase of our bank account rationalization project.”
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