From the May Special Report issue of Treasury & Risk magazine

Effective Liquidity Management Drives Results

Global expansion is forcing multinational corporations to look for ways to improve the efficiency of cash management. Best-in-class operations have addressed these concerns, putting visibility at their fingertips with actual reports of cash and short-term investments and predictive capabilities to facilitate optimal decision making. A major stumbling block to achieving this visibility is the fact that few financial institutions offer the necessary branch footprint to support a truly global network of funding accounts across numerous countries and currencies with the connectivity solutions and forecasting tools to report and predict global cash positions. Citi does.

Citi’s Liquidity Management Services is backed by a robust global processing platform, providing control and consistency for clients to seamlessly mobilize cash through a global account structure and TreasuryVision® to perform predictive forecasting and stress-testing capabilities using basic statistical algorithms.

Cash Concentration as a Competitive Advantage

Clients can take advantage of end-of-day mobility in more locations than any other cash management bank through Citi’s unparalleled proprietary Network for liquidity management, backed by its robust global processing platform. One of the primary advantages of utilizing Citi’s global Network for liquidity management is gaining the ability to standardize concentration processing, enabling treasury to implement a truly global operating model. Our platform allows a greater level of automation in treasury operations, which reduces risk from multiple decentralized processes. This also makes it possible to achieve greater economies of scale and lower banking costs. At the same time, related processes, such as cash flow forecasting, can be further simplified and standardized, resulting in improved working capital management.

Leveraging a design that incorporates rules-based logic allows for fully customizable solutions that meet a broad range of client-specific requirements. Functionality is designed to help control fund movements, whether “with the sun” or “against the sun,” as well as manage the frequency or periodicity of target balancing transactions. A corporate treasurer can take advantage of Citi’s platform to automate cross-border fund flows and concentrate funds into regional and global treasury centers. This is a highly attractive approach because it can be achieved with no loss of value, and without regard for time zones and currency cut-off times.

Holistic Cash Flow Forecasting

A comprehensive cash flow forecasting process is an important component of any well run global treasury operation. Citi has enhanced the Cash Flow Forecasting module of its award-winning TreasuryVision® Global Liquidity Portal to provide visibility into account activity on an intraday and end-of-day basis. This sophisticated forecasting module features enhanced analytics, including optional predictive forecasting that uses statistical algorithms and “what if” stress-testing capabilities. Equally important is the ability to analyze forecasted data versus actual data, which helps improve forecasts over time.

Citi’s sophisticated cash flow forecasting solution eliminates the need for treasury clients to estimate end-of-day positions. Instead they can wait until all operating transactions are processed and then accurately calculate the amount of funds to be transferred into or out of an account. By curtailing estimation errors, residual balances are eliminated. Costs associated with non-interest-bearing idle balances and residual overdrafts are also curtailed. As a result, the net balance in the structure is readily available to treasury for investment or debt reduction, allowing optimization of working capital.

From Insight to Value

Citi specializes in helping companies meet their liquidity goals, being widely recognized as a leader in the industry for its proven Treasury Advisory, Liquidity Analytics, Cash Aggregation and Optimization services globally. For multinational corporations seeking to manage complex account networks across multiple countries, currencies and legal entities, Citi’s unparalleled and integrated Network for global liquidity management and liquidity analytics tools like TreasuryVision® Cash Flow Forecasting, offer the next generation of liquidity management solutions.


Andrew Gelb

Andrew Gelb
North America Head of Treasury & Trade Solutions

©2013 Citibank, N.A. All rights reserved. Citi and Arc Design and TreasuryVision are registered service marks of Citigroup Inc.


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