Slide 1: Evolution in Corporate Banking Receivables: Paper to Electronic to Mobile
Evolution in Corporate Banking Receivables Paper to Electronic to Mobile Vikram Gupta, Senior GTS Global Product Manager Joseph Alonzo, Global GTS Mobile Product Manager May 17, 2011 May 2011
Slide 2: Biographies
Biographies Vikram Gupta Joseph Alonzo Vikram is a Senior Product Manager in Global Receivables within Joe is the Mobile Receivables Product Manager within Global Global Transaction Services (GTS) at Citi. He is responsible for Transaction Services (GTS) at Citi. Joining Citi in the Fall of the over
Slide 3: Table of Contents
Table of Contents 1. Evolution of Receivables 3 2. Impact of Mobile Technology 7 3. Key Considerations for Corporate Treasurers 14 4. Case Study/Questions 15
Slide 4: Materials provided for educational and illustrative purposes only
These materials are provided for educational and illustrative purposes only and not as a solicitation by Citi for any particular product or service. Furthermore, although the information contained herein is believed to be reliable, the following does not constitute legal advice and Citi makes no rep
Slide 5: 1. Evolution of Receivables
1. Evolution of Receivables a citi
Slide 6: Some Brief Historical Context
Some Brief Historical Context 700 BC 900 AD 1958 AD Largely unchanged, cash and coin based system has been used for 2,000+ years Technological innovation over the last 50 years, enabled originally by the credit card, has created more changes and opportunities than in the prior 2,000 years combin
Slide 7: Receivables Trends: Consumer to Business Flows
Receivables Trends: Consumer to Business Flows 2% 3% 4% 3% 4% 4% 5% 6% 6% 12% 13% 15% 14% 15% 15% 14% 14% 14% 6% 3% 7% 9% 10% 11% 5% 4% 12% 13% 14% 6% 5% 16% 7% 5% 6% 7% 8% 7% 8% 9% 10% 8% 7% 9% 6% 11% 6% 13% 14% 7% 15% 8% 9% 10% 65% 60% 54% 52% 49% 44% 39% 35% 30% 2004 2005 2006 2007 2008 2009 2010
Slide 8: Receivables Trends: Business to Business Flows
Receivables Trends: Business to Business Flows 2% 2% 2% 2% 2% 2% 2% 2% 2% 8% 8% 9% 10% 11% 13% 14% 16% 18% 15% 16% 18% 19% 21% 24% 27% 30% 34% 76% 74% 72% 69% 66% 62% 57% 52% 46% 2004 2005 2006 2007 2008 2009 2010 2011 2012 Checks ACH Purchase Cards Wire Driven through four primary channels – Pape
Slide 9: 2. Impact of Mobile Technology
2. Impact of Mobile Technology
Slide 10: The Mobile Revolution
The Mobile Revolution Global ICT Developments, 2000–2010 (1) 100 80 76.2 Per 100 Inhabitants 60 40 30.1 20 17.3 13.6 8.0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (1) Mobile Cellular Telephone Subscriptions Internet Users Fixed Telephone Lines Mobile Broadband Subscriptions Fixed Broa
Slide 11: Mobile Financial Services: Still Early in its Lifecycle
Mobile Financial Services—Still Early in its Lifecycle 3 Market Integration Interoperability across mobile Phase of operators interconnect with Mobile Efforts Financial Service Providers Needed Intervention 2 Market Maturation Sophistication Saturation pushes competition Supporting interoperability,
Slide 12: Numerous Players in the Mobile Financial Services Ecosystem
Numerous Players in the Mobile Financial Services Ecosystem Regulators Ensure the integrity of the financial system Corporations Mobile Operators Remove cash from the system, Generate new streams of revenue to fight increase compliance and reach a new off decreasing margins customer base Consu
Slide 13: Market Entry Requires Tailoring Depending on Maturity
Market Entry Requires Tailoring Depending on Maturity Mobile Check Deposit Location Based Services—Collections, Kiosks, Locators, etc. III. Mobile Coupons Download Advanced NFC-based Receivables Collection and Locator Service Location-based Mobile Social Networking—Trading Partner Collabor
Slide 14: Impact of Mobile On Receivables Value Chain
Impact of Mobile On Receivables Value Chain Accelerating Digitization Increased Channels Growing Competition Customer Centricity Migration from paper to Over 5 billion devices Traditional competitive Improved and increased electronic workflows globally and exceeding boundaries breaking techn
Slide 15: Improvement Potential for Corporate O2C Processes
Improvement Potential for Corporate O2C Processes 1 2 3 4 5 6 Receive Inventory Accept Deliver Issue Open A/R Order Check Order Goods Invoice Seller Buyer 12 11 10 9 8 7 Authorize Collection Invoice Invoice A/R Recon Settlement Collection Initiation Approval Review Order Management (1) Delivery (4)
Slide 16: Building a Sustainable Mobile Receivables Ecosystem
Building a Sustainable Mobile Receivables Ecosystem Key Roles for Banks Managing Financial Risk—KYC, AML, compliance, Network Operators credit lines Supplier’s Bank Buyer’s Bank Expertise facilitating transaction flows globally Network reach leveraging local and cross-border expertise Supplier
Slide 17: 3. Key Considerations for Corporate Treasurers
3. Key Considerations for Corporate Treasurers
Slide 18: Key Considerations for Corporate Treasurers
Key Considerations for Corporate Treasurers When evaluating the use of Mobile technology in helping to manage your receivables business, consider some of the following Security – In nearly all surveys, over 60% of corporate treasury executives cite security concerns as the main reason for not usin
Slide 19: 4. Case Study/Questions
4. Case Study/Questions Orr citi
Slide 20: Case Study: Mobile Collections in South Korea
Case Study—Mobile Collections in South Korea Mobile Collections Solution for Corporate Clients The Client: Coca-Cola Beverage (CCB) Co. is a bottling partner/distributor in Korea for The Coca-Cola Company and the market-leader. In 2009, CCB’s total sales volume was $420 billion and deals with over
Slide 21: Key Takeaways
Key Takeaways Mobile technology has the potential to fundamentally impact the delivery of Receivables and, more broadly, financial services to end-users While this technological discontinuity creates opportunities, successful business model redesign and execution is required to creating and capt
Slide 22: Q&A
Q&A 16 Case Study/Questions
Slide 23: For More Information
For More Information … Contacts Vikram Gupta, Director Senior Global Product Manager, Global Transaction Services 388 Greenwich Street, New York, NY 10013 +1.212.816.2656 vikram.gupta@citi.com Joseph Alonzo, Director Global Mobile Product Manager, Global Transaction Services 388 Greenwich Street, Ne
Slide 24: efficiency, renewable energy & mitigation
IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have bee