Slide 1: From challenge to opportunity: managing cross-currency payments in a dynamic market
Transaction Services June 4, 2013 From challenge to opportunity: How to effectively manage cross-currency payments in a dynamic market Strictly Private and Confidential
Slide 2: Today's speakers
Today’s speakers Ebru Pakcan, Head of Global Payments, Treasury & Trade Solutions, Citi Ebru Pakcan is the Head of Global Payments for the Treasury and Trade Solutions (TTS) business, based in New York. Prior to her appointment to her current role, Ebru was the Head of Payments for Europe, the Middl
Slide 3: Today's agenda
Today’s agenda Why managing cross currency payments effectively is vital in today’s dynamic environment What are the biggest cross-currency payment challenges you face today? Local country regulations and payment requirements management International beneficiary and supplier management FX exposu
Slide 4: The global payments landscape is changing significantly and rapidly
The global payments landscape is changing significantly and rapidly Changes in key macro areas have increased both the complexity and the opportunity of operating globally Legal & Regulatory Political Economic Technological Increasingly complex Continued sovereign risk Globalisation and Digitisation
Slide 5: Payments around the world: operating in a dynamic global environment
Payments around the world: operating in a dynamic global environment Payment systems modernisation, emergence of new payment instruments, clearing systems and increasingly stringent regulation are key trends impacting the payments landscape globally WESTERN EUROPE NORTH AMERICA • Stagnant growth, eu
Slide 6: Addressing your biggest cross-currency payment challenges
ADDRESSING YOUR BIGGEST CROSS- CURRENCY PAYMENT CHALLENGES
Slide 7: Cross-currency payment management survey results
Cross-currency payment management survey results Citi’s WorldLink® Payment Services, Citi’s primary currency capability, recently conducted a survey with some of our top corporate client users Survey To continue to deepen our understanding of our clients’ biggest challenges and key Objective: obje
Slide 8: Your top challenge is…
Your top challenge is…. Take our poll now: What is your number one challenge in cross-currency payment management? Local country regulations and payment requirements management International beneficiary and supplier management FX exposure management Reconciliation management Local currency
Slide 9: Challenge: Local country regulations and payment requirements management
Challenge: Local country regulations and payment requirements management Regulatory and Market change in the payments industry is on the rise. Corporations performing cross-border payments for their own client base or internal functions need global partners which can minimize impact and create value
Slide 10: Challenge: International beneficiary and supplier management
Challenge: International beneficiary and supplier management Trends in beneficiary / supplier management Challenges and Implications An average corporation in United States processes Challenges in manual collection of 6,200 invoices per month beneficiary / supplier information: In some industrie
Slide 11: Best practices to consider for beneficiary management
Best practices to considers for beneficiary management A large majority of corporations have manual processes in place to collect supplier information for the purpose of making a payment – but how can this challenge be best approached? Current manual process Best practices to consider Electronify
Slide 12: Challenge: FX exposure management
Challenge: FX exposure management Trends and key observations FX Risk Management Objectives 1 1% Having a robust currency risk management strategy is To minimize earnings volatility even more of an imperative today: 12% Corporate treasury departments are managing an To manage transaction risk in
Slide 13: What are your most important objectives in managing your cross-currency payments?
WHAT ARE YOUR MOST IMPORTANT OBJECTIVES IN MANAGING YOUR CROSS- CURRENCY PAYMENTS?
Slide 14: Objective: Increased efficiency leveraging account and non account payments
Objective: Increased efficiency leveraging account and non account payments Both account and non-account based options have specific benefits and tradeoffs that need to be considered when choosing the optimal mix based on your business needs Account Based Payments Non-Account Based Payments Open and
Slide 15: Centralised and local account evaluation framework
Centralised and local account evaluation framework There are a multitude of considerations to determine the best mix of centralised and local account structures. The following framework helps companies structure which elements to centralise versus keep local to uniquely fit their needs. Currency Mix
Slide 16: Evolution of client key objectives: challenges and considerations
Evolution of client key objectives: challenges and considerations Expanding operations globally Centralization of key payment Leveraging in-house bank flows structure Use examples Use examples • Oil and Gas companies with Use examples • Corporates with Payment remote projects, using offshore • Sophi
Slide 17: Client use case examples
Client use case examples Centralized control via a non-account structure Hybrid model of local accounts and centralization Client One of the largest oil joint ventures in the world Client Leading oil & gas company with 20,000+ retail making over $15 million of payments daily sites and 15+ refineries
Slide 18: Objective: Automated tracking, reporting and reconciliation
Objective: Automated tracking, reporting and reconciliation Straight-through reconciliation — how information and data management can be further utilised to produce comprehensive and rich bank statements suitable for companies’ needs Trends and observations Important considerations Many corporates
Slide 19: Objective: Centralization and control
Objective: Centralization and control Key to centralization and control in cross-currency payments is partnering with a provider who enables your global flows and empowers your business. Solutions that are aligned with your priorities around FX, channel use, payment types and funding currencies that
Slide 20: Key takeaways
KEY TAKEAWAYS
Slide 21: Key takeaways from today's webinar
Key takeaways from today’s webinar Local country regulations and payment Increased efficiency requirements management Evaluation framework: • Which markets do you need to access for the purpose of • Currency mix • Operations & systems making payments? • FX & funding strategy • Paying entity • Which
Slide 22: Thank you very much for your time today! Q&A
Thank you very much for your time today! Q&A 22
Slide 23: efficiency, renewable energy and 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