Citi Perspectives Fall 2019

Citi Perspectives  | 41 40 | Treasury and Trade Solutions way, the friction between corporates and banks is reduced — making it impossible to tell where the bank ends and treasury operations begin. Already today, APIs are used to retrieve account balances in real time, fully automate payment status inquiries without any human intervention; and help institutions with larger initiatives, such as faster settlement for insurance companies, real-time transactions for new economy workers and better working capital management using data visibility. Innovations, such as APIs, are making it possible to conduct transactions instantaneously, improving liquidity decision-making and allowing treasury to better support overall business strategies and objectives. For example, the use of APIs is allowing clients to initiate payments directly from native enterprise resource planning (ERP) systems, eliminating the need to log into a banking portal. APIs are also enabling clients to access bank account information in real time through their own systems, saving time and effort. In short, routine tasks will either become automated or made far easier to execute. As a result, the overall client experience will be greatly enhanced. Putting data to work for clients As the world becomes more hyper- connected, data is increasingly becoming a driving force behind the invisible bank. Next generation technology solutions are beginning to leverage data science to more thoroughly understand client behavior in order to allow banks to make their systems smarter, so clients can work more efficiently. Both bank and non-bank players are working to harness the power of data to extend the range of dynamic services being offered to corporates, while at the same time ensuring they are highly relevant to each corporate’s specific needs. By leveraging data and applying AI, financial services organizations are linking banking and treasury functions together in new ways and providing intelligent recommendations that can anticipate needs and simplify processes. As the world becomes more hyper- connected, data is increasingly becoming a driving force behind the invisible bank. Next generation technology solutions are beginning to leverage data science to more thoroughly understand client behavior in order to allow banks to make their systems smarter, so clients can work more efficiently. Both bank and non-bank players are working to harness the power of data to extend the range of dynamic services being offered to corporates, while at the same time ensuring they are highly relevant to each corporate’s specific needs. By leveraging data and applying AI, financial services organizations are linking banking and treasury functions together in new ways and providing intelligent recommendations that can anticipate needs and simplify processes. The connected future is here The world is rapidly becoming far more connected. A recent study shows that more than four billion people around the world were using the internet as of 2018, which means over half of the global population is now connected. 1 And mobile technology continues to push connectivity to the farthest reaches of the planet. Studies predict that by 2025, more than 60 percent of the global population will be connected via the mobile internet. 2 The digital transformation taking place across nearly every business sector is focused on improving the client experience. By harnessing the vast amounts of data available, technology promises to simplify everything we do by understanding our needs and preferences, and offering insightful recommendations or reducing mundane tasks. Following in the footsteps of the consumer marketplace — where a frictionless, convenient, and seamless experience has come to be expected — the business world is now beginning to look for similar advancements. Reducing friction between corporates and banks Today we are seeing an evolution in financial services where banks and third-party providers are creating an embedded banking experience — one which seamlessly integrates banking functions and services into the daily duties of treasury professionals, delivering a nearly invisible connection between banks and corporates. The introduction of next generation technologies, such as application programming interfaces (APIs), AI, robotics and chatbots, is poised to deliver the “invisible bank,” where treasury and banking functions meld together. Banks, such as Citi, see this expansion of connectivity as an opportunity to dramatically improve the client experience. This means extending the reach of banking solutions beyond the bank’s own channels and technologies, incorporating them into day-to-day treasury management functions. In this 1 https://wearesocial.com/blog/2018/01/global-digital-report-2018 2 http://www.streamingmediaglobal.com/Articles/Editorial/Featured-Articles/MWC2018- With-5G-World-Is-On-the-Cusp-of-Hyper Connectivity-123431.aspx Today we are seeing an evolution in financial services where banks and third-party providers are creating an embedded banking experience ... delivering a nearly invisible connection between banks and corporates.