Citi Client Casebook Middle East and Africa 2022

Digital, Data and Connectivity 35 The Results The elimination of manual activities from FMN’s treasury processes cutting across the company’s interaction with over 15 banks and 300 bank accounts underpinned best practice and innovation in the following ways: Digitisation : FMN took the decision to digitise the entire treasury process by integrating into the electronic banking channels of banking service provider, Citi, as well as using the same provider to access multiple bank accounts for the benefit of streamlining processes as much as possible. Connectivity and straight through processing : FMN connected its ERP, Axapta, to Citi’s banking systems for straight through payments and reconciliation, thereby fully eliminating all the hitherto manual process handled by a large treasury team. Improvement in financial metrics : Nigeria went through a period of recession in 2016/2017 that significantly impacted the profitability of most companies. FMN’s ability to claw back some savings from its financial operations demonstrates best practice in this environment. Improvement in staff work-life balance : FMN was also able to demonstrate marked improvement in the staff work-life quality. Key Benefits • Substantial cost savings and improved optimisation of working capital: as a result of the improved treasury set up and operations following the adoption of CitiDirect BE, FMN was equipped to implement cash management processes and optimise its balance sheet. The impact was a reduction in financial expenses of about 40% and increased interest income compared to the previous year. • Risk of fraud mitigated. • Enhanced audit and governance procedures and ability to meet regulatory requirements. • Improved operational efficiency through workflow automation tool, optimal account/treasury structure, more effective use of manpower, improved account visibility and reporting.