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Developing liquidity management strategy using Citi Interactive Solutions

Inevitably, in any corporate relationship banks need to be both reactive and proactive: reactive to whatever the clients ask of them, and proactive to suggest new approaches. To make the experience more tailored, intuitive and relevant, Citi has developed Citi Interactive Solutions that is used for both proactive and reactive support of their treasury and trade clients.

Citi Interactive Solutions

Citi Interactive Solutions, which has been live globally for some 24 months, is made up of a range of modules focused on the core functions in cash and treasury management including treasury managementbenchmarking, liquidity management and trade financeThese enable Citi and their clients to interactively: 

  • • evaluate the company’s treasury management practices and working capital metrics against their peers,
  • • model best in-class treasury and working capital structures and assess the impact and benefit of structure and strategy changes,
  • • identify pain-points and inefficiencies in their current structures and processes based data on the end-of-day positions held in Citi and other bank accounts, and
  • • record the customized structures to be used for deeper analysis and implementation 

Citi Interactive Solutions is Citi’s proprietary and patented interactive experience. 

Liquidity Management Module

The Liquidity Management module in Citi Interactive Solutions simulates liquidity flows between clients’ accounts world-wide based on actual account data and the company’s preferences for a liquidity structure:

Source & Copyright©2014 - Citi. 

It enables clients to analyse interactively the performance of their current liquidity management structure, or to create and edit a new liquidity management structure, and to assess its financial benefits.

See the impact of regulations

The Liquidity Management module can also be used to understand the impact of local regulations to the company’s country, regional and global structures. Users can drill down into each location to view their account structures, gain explanations on why liquidity may flow freely or with restrictions, and identify where the funds are trapped:

Source & Copyright©2014 - Citi

Peer comparisons and creating new liquidity management structures

The Liquidity Management module enables clients to compare interactively the performance of different structures used by other Citi clients, and/or customise their own liquidity management structure by removing a country, company or account from a sweep, choosing between multi-currency or single currency bases, physical sweeps versus notional pooling, etc.:

Source & Copyright©2014 - Citi 

Taking a snapshot

Once the new overall liquidity management structure has been agreed, Citi can take a ‘snapshot’ of the revised structure, which records all the details of the sweeps at an account level and at an entity level, etc. This may be saved and sent to the client, who can review and provide final agreement. Subsequently this document becomes part of the statement of work that is used by Citi’s implementation manager to create the new structure. 

Future development

Citi intend to continue to add further modules to Citi Interactive Solutions to provide clients, as they put it, “with a holistic suite of advisory, analytics and treasury solutions.” New modules will include Citi Working Capital Analytics to provide analyses and recommendations for Citi Integrated Payables Solutions, and optimizing global opportunities for Commercial Cards. 

Amit Agarwal, EMEA Head Liquidity management Services, Citi believes that, “Citi Interactive Solutions is redefining our client engagements by allowing our best-in-class expertise to shine through. Using our interactive advisory process and our proprietary technology, our corporate clients may engage with us to holistically assess, customize and optimize their treasury management solutions.”

CTMfile take: Citi are probably the only cash management bank that has enough global coverage combined with local expertise to give them the insights on MNC liquidity management best practices to be able to deliver such a solution. Citi Interactive Solutions brings the bank’s offerings together in a way that no other bank has achieved before. Corporates will soon come to expect this way of solution selling for global and multi-country cash and treasury management services

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