Treasury and Trade Solutions - LEAPROS

1 And The Role Of The Treasury Professional In The New World OrderThe Rise Of MachinesJune 11, 2014 Treasury and Trade Solutions2 People And Machines Are Now Partners In Doing Work Machines (specifically computers) have significantly changed how we work This is especially true in financial services We now live in a world where computers and people work together to get a job done Computers are especially good at mundane repetitive tasks Which leaves financial professionals in a better position to handle strategic tasks3100 Years Ago Without Modern TechnologyHousehold Appliances HealthCarsTelecomIn 1930 a popular women s magazine asked readers how many time they wished they could push a button and have all their household chores performed for them. This was decades before modern conveniences like dishwashers and microwaves were on the the turn of the last century, indoor plumbing was not common.

2 Raw sewage was often dumped directly into streets and open gutters which went straight into rivers and lakes, many of which were sources of drinking water. Waterborne diseases were the 3rd leading cause of : Greatest Engineering Achievements of the 20th Century National Academy of Engineering In 1904 a grand total of 141 miles of paved roads outside cities. The first crossing of the continent by car in 1903 required 44 days of hard driving. Telephones were initially sold in pairs. The first customer, a Boston banker, leased a pair for his office and home, plus a private line to join Have Also Become Tied To TechnologyBARTERIn the earliest days, men would Trade their goods directly, without a currency as an intermediaryGOLD & SILVER COIN (500 BC)The first coins were created in Lydia and allowed a single standard to value items and facilitate CURRENCY (1000)The use of paper money was first used in china as a substitute for coinage allowing for easier transfer of TRANSFER(1871)Western Union introduced its money transfer service, based on its extensive telegraph networkPAPER CHECKS (1650)In Britain goldsmiths and scriveners created checks to allow for easier Trade over (1973)SWIFT creates a shared worldwide communications link and common language for financial transactionsCITIDIRECT (2000)

3 Citi creates the first online web based platform for performing global institutional paymentsISO 20022 (2004)The ISO 20022 standard was adopted, creating a standard international language for payments communication2000 AD1500 AD1000 AD500 AD0500 BCEP hysicalElectronicComputerizedTreasury and Trade Solutions (TTS) Is The World s Largest B2B BankCiti s Treasury and Trade Solutions (TTS) provides the world s largest institutions Solutions to manage their cash, finance Trade and make payments globallyE-banking in 24 languages around the worldOperate in 100 countries worldwide with domestic payments in 140 Banking services for 45 of the top 50 FT Emerging 500 Serve 81% of the Fortune Global 500, 400+ of the top 500 banks, and 700+ public sector organizationsConnected to 154 cash clearing systems globally56 There Are Two General Ways To Make PaymentsMobileCiti ChannelServicesCitiDirect BEOnlineCitiConnectFileMachine To MachineOnline BankingCiti's electronic banking platform in online, mobile and tablet versions for anytime/everywhere accessProvides a direct, connection to Citi from a company s ERP (Enterprise Resource Planning)

4 System and Treasury workstationTabletComputers Can Directly Integrate And Make PaymentsConnectivitySecurityEnrichmentTr ansformationMulti-Destination-Routing MonitoringReconciliationSupport of industry standards for communications and custom formatsUnparalleled global reach with TTS capabilities covered worldwideCitiConnectCash and TradeSingle Connectivity Window to Citi s Cash, Trade , and Card productsCommercial CardsIssuer ServicesInvestor ServicesStatements and ReportingeBAMCiti s Treasury and Trade Solutions (TTS) provides the world s largest institutions Solutions to manage their cash, finance Trade and make payments globally7 Computers Can Also Reconcile Payments Citi Statements and Reconciliation is a solution designed to facilitate your financial and operational reconciliation through providing data enrichment and itemization The solution will help increase the efficiency of your account reconciliation processes and move your back office capabilities beyond straight through processing to straight through reconciliation The solution provides itemization of bulk payments and data enrichment of your transactions.

5 The solution is designed to enhance end of day statements generated from the CitiDirect BESM platformStatements and Reconciliation allows clients to automate much of reconciliation, reducing manual efforts involved89 What Do We Need People For?MobileCiti ChannelServicesCitiDirect BEOnlineCitiConnectFileMachine To MachineOnline BankingCiti's electronic banking platform in online, mobile and tablet versions for anytime/everywhere accessTabletProvides a direct, connection to Citi from a company s ERP (Enterprise Resource Planning) system and Treasury workstation10 Computers + People A Powerful Combination In 1997 the IBM computer Deep Blue beat the world chess champion Garry Kasparov. This was the first time that the best computer in the world beat the best human in the world Was this the end of human / computer chess? held a Freestyle competition in 2005 changing the game Humans and computers could partner The chess machine called Hydra the grandson Blue played A Grandmaster with relatively good computer could easily beat Hydra But there was a surprise The winner was 2 OK players with 3 laptop computers but this system of players, computers and the interface worked better than the competitors This is an example of Man Computer Symbiosis a term coined by JCR Licklider in 1960 Source: The Chess Master and the Computer by Garry Kasparov, New York Review of Books, February 11, 201011 Humans And Computers Are PartnersHumanComputerMan Computer Symbiosis(Humans + Computers) Selling Services Managing Audits Dealing with Crises Connecting to other machines:to efficiently transport data ( , CitiConnect ) Process/Match large amounts of routine data.

6 Looking for exceptions ( , Straight Through Reconciliation) CategoryHumanMachineCostCheaper and more flexible Build a better UI allowing humans to do their jobStrategySet and measure goalsAnalytics capabilities JudgmentPersonal accountabilityProvide appropriate controlsImprovementsAnalyze trends to increase efficiencies Provide data to allow humans to improve performance12 Man Machine Symbiosis Automobile Example Today, cars are very closely linked to people during the driving experience Cars today are Drive by Wire GM issued its recall because when the car turns off, people could no longer drive there was no power steering, no power braking and airbags shut off But humans are still needed for a number of things: Cost: Advanced computer features (self parking, accidence avoidance) are still very expensive today Strategy: People still need to decide where to go (for now) Judgment: People are still needed to be responsible in case there are accidents in case something truly exceptional happens Improvements: Car designers are continuing to advance the system13 Cost: Cheaper And More Flexible Key learning: Make simple tasks simple to perform Home Screen: The CitiDirect BE platform provides a home screen view that will allow clients to perform all of their functions more quickly and easily Shortcuts: Customizable shortcuts provide one click access to most used functions Quick Tasks.

7 Allow users to easily authorize and release payments and do other common tasksHumanComputer Humans are more flexible and multipurpose Getting a human up to speed is much easier than programming a machine Provide access to the electronic system Allow humans to get their jobs done quickly and easily through an optimal User Interface (UI)14 Strategy: Set And Measure Goals Market Data: Provide broad information to make strategic decisions Deep Analytics: Allow managers to make analytical and intuitive decisions on money management Set Liquidity Positions: Interactive viewing, analytics and reporting capabilities over their structured accountsHumanComputer Setting cash management strategy Setting standards on connectivity options Understand market trends and other experience to make business decisions Provide access to key market data and analytics Provide capabilities to analyze data15 Judgment: Personal Accountability CitiDirect BE Mobile: Allows senior client users to authorize payments even when they are not in the office Maker / Checker: To improve control, there should always be a separation between a person inputting a payment and authorization Customizable Authentication: Different types of transactions require different levels of risk (and therefore authentication).

8 The CitiDirect BE platform offers 9 levels of customized authenticationHumanComputer The ultimate arbiter of controls and authentication Provide accountability for high value transactions Provide data that allows for simple and easy understanding of risks Flexible infrastructure to manage security and controls that companies need16 Improvements: Analyze Trends To Increase Efficiencies Payments Analytics: Identify trend and opportunities to improve straight through processing Receivables Analytics: Streamline receivables reconciliation through consolidated transactional information. Scorecards: Provide summarized information to measure progress against goalsHumanComputer Manage exceptions and manually process them Analyze data and make system improvements Capturing large amounts of data and storing and transforming it for analysis to improve system performance Highlighting exceptions17 Conclusion: Computers + Humans Beats Either One have made a large impact on how we live today across every industry including are good at some areas: Connecting to other machines:to efficiently transport data ( , CitiConnect) Process/Match large amounts of routine data: looking for exceptions ( , Statements and Reconciliation) people still have a place through advantages in: Cost: Cheaper and more flexible Strategy: Set and measure goals Judgment: Personal accountability Improvements.

9 Analyze trends to increase efficienciesMy Son s First Try At Human Computer InteractionMan Computer Symbiosis19 Presentation Type (optional) | Date of Presentation 2014 Citibank, All rights reserved. Citi, Citi and Arc Design, CitiConnect, CitiDirect and CitiDirect BE are trademarks of Citigroup Inc. or its affiliates and are used and registered throughout the world.