The future of liquidity management is shown by development plans for Citi’s Global Concentration Eng
by Kylene Casanova
The recent version of Citi's Global Concentration Engine (GCE) which is being rolled out country by country world-wide has many new features providing much more intelligence and embedded logic, including:
- sweeping cash across more markets at the end of the banking day, instead of leaving behind residual balances due to constraints of currency cut-off times or partner bank networks
- these sweeps which track of the amount (CR or DR) available and then sweeping funds according to myriad of flexible parameters that allow clients precise control over cash movement; other options include sweeping depending on time in the month, etc.; round trip sweeps, , and pro rata sweeps to cover Joint Venture arrangements
- sweeps defined depending upon the regulatory framework per country
- balance and transaction "tag" data delivery, customised for each client's particular requirements for automated posting to their designated GL on their treasury workstation or ERP system
- integration with the clients' desired connectivity treasury workstations or ERP systems through their desired connectivity approach solution, whether using market standards such as ISO 20022 or other formats clients can accept.
GCE is the cornerstone of Citi's Global Liquidity Network. Already, the next generation of the Global Liquidity Network is in deployment and will, by year-end 2012, provide:
- much greater visibility and mobilization of cash positions, including both intra-day and end of day balances, over in more markets than the 84 countries served today
- global multi-currency notional pooling and interest optimisation services
- advanced capabilities for In House Banking, including inter-company lending and re-allocation of interest to satisfy complex transfer pricing and "arms-length" requirements
- a new integrated enhanced cash flow forecasting service to help companies reduce liquidity buffers, to be launched this autumn
- coming soon (year-end 2012) is GCE integration with other key Citi services including Treasury Vision® Liquidity Manager on CitiDirect BE (the new version of CitiDirect) and Intraday Cash Exposures on CitiDirect BE Mobile
This solution delivered by incorporating GCE (back end) and TreasuryVision (client front-end) services is shown below:
Source & Copyright©2013 - Citi
Many sad cash management geeks, like me, have been talking and dreaming of something like this global liquidity management solution for a long time. Nevertheless, it will be the first time that we will be able to see it in full operation. 'Locked cash' and Working Capital could be truly be minimised for the first time.
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