Citigroup, Inc. · NYSE:C
Citigroup — sepa pres
23 slides from Citigroup's investor presentation, Nov 7, 2012
Slide 1: <15 Months to SEPA – Your Next Steps
Transaction Services November 7th, 2012 <15 Months to SEPA – Your Next Steps Today’s Speakers: Karin Flinspach Jonathan Jordan Garry Young EMEA Head of Payments and EMEA Payments Market Manager, Director of Corporate Receivables, Citi Transaction Services Citi Transaction Services Services, Logica /
Slide 2: Agenda
Agenda SEPA overview and market update | where are we today? How to get ready | what are the key decisions and steps? Ensure focus on SEPA Direct Debits | what are your options? 2
Slide 3: SEPA Overview & Market Update
SEPA Overview & Market Update Where are we today?
Slide 4: Single Euro Payments Area (SEPA)
Single Euro Payments Area (SEPA) SEPA is the payments integration initiative of the European Union for simplification and harmonization of ACH and Direct Debits in EUR, removing the cross border barriers. • 32 Countries • Euro currency only • Euro ACH and Direct Debits within this geographical area
Slide 5: Market Uptake on SEPA Credit Transfer and SEPA Direct Debit
Market Uptake on SEPA Credit Transfer and SEPA Direct Debit Sep 2012 – 30% SEPA Credit Transfer (CT) Scheme Steady increase in adoption, positive developments of countries such as Finland and Luxembourg adopting the scheme ‗en masse‘ in place of their legacy euro ACH schemes. Many organisations
Slide 6: The End Date for Migration to SEPA
The End Date for Migration to SEPA Long sought certainty for market participants, end date for migration to SEPA was announced in February 2012. Single end date for both SEPA CT and SEPA DD in euro Member States. 1 February 2014 By end date indicates local and cross border EUR ACH and Direct D
Slide 7: SEPA Supports Several Corporate Treasury Objectives
SEPA Supports Several Corporate Treasury Objectives Liquidity Optimisation Cash Flow Interest Forecasting Optimisation Fewer Bank Ease of Accounts Reconciliation Centralisation Efficiency STP Shared Corporate Payment Services Processing Objectives Centralised Reduced Treasury Bank Fees SEPA Extended
Slide 8: How To Get Ready
How To Get Ready What are the key decisions and steps?
Slide 9: Form a SEPA Migration Plan
Form a SEPA Migration Plan Align with your Form a Develop a Assess SEPA overall Cash impact to your Management SEPA project Migration Transition organisation team Plan Strategy Organisational Considerations SEPA Migration Checklist Discuss SEPA with your bank partner Assess Euro ACH and direct d
Slide 10: SEPA Transition Can Be Lighter or Complex
SEPA Transition Can Be Lighter or Complex Organisations can choose to leverage SEPA as an opportunity to reengineer existing cash management structures in order to reap longer term centralised and standardised benefits. Alternatively a lighter approach can be taken. Centralise AP/AR operations in
Slide 11: A Closer Look at SEPA Credit Transfers
A Closer Look at SEPA Credit Transfers Details • Scheme launched on 28 January 2008 and addresses non-urgent payments to any The Background participating bank in SEPA. • Many organisations already adopted for Vendor Payments, Payroll adoption accelerating since Payment Types Jan 2012. Tax payments h
Slide 12: Choosing the Suitable SEPA Direct Debit Scheme
Choosing the Suitable SEPA Direct Debit Scheme SEPA has two Direct Debit schemes, Core and B2B, each with specific characteristics to consider. Companies can collect through either scheme, across the Area, with a single SEPA Originator ID. Core B2B • Mandatory DD scheme for C2B and/or B2B collection
Slide 13: Form a SEPA Migration Plan
Form a SEPA Migration Plan Assess SEPA Align with your Form a Develop a impact to overall Cash your Management SEPA Migration Transition organisation Strategy project team Plan SEPA Migration Checklist Decide on the direct debit scheme: Core or B2B Ensure BIC/IBAN readiness and ongoing Underst
Slide 14: Ensure Focus on SEPA Direct Debit Effort
Ensure Focus on SEPA Direct Debit Effort What are your options?
Slide 15: SEPA Direct Debit is a Major Challenge for Business
SEPA Direct Debit is a Major Challenge for Business 15
Slide 16: Poll Question 1
POLL QUESTION 1 What is your organisation’s SEPA project status in terms of being ready to meet the end date of 1st February 2014? a) We have not started planning for SEPA yet b) We have started planning, however not sure whether we will be able to complete by 2014 c) We have started planning, and w
Slide 17: SEPA Direct Debit: What You Need To Do
SEPA Direct Debit: What You Need To Do Send mandates out for signature Upload Mandate Related Information Convert legacy mandates into SDD compliant BIC/IBAN conversion & validation Maintain a mandate database Store mandates Notify customers they are being migrated to SDD Use correct timings for col
Slide 18: In-house Project or Outsourced Service?
In-house Project or Outsourced Service? In-house Project Outsourced Service Late starting SEPA programme Well established SEPA programme - Aggressive national migration plan Believe time is still on your side - Fast track option - Insurance policy IT & SEPA resource and budget Available Resource & b
Slide 19: CGI SEPA Mandate Management Service
CGI SEPA Mandate Management Service SEPA Fast Mandate Complete • c15% of all SDD implementation migration package traffic • <8 weeks • Mandate • Fully managed • Major banks & • Local on- scanning service corporates boarding • Mandate pack • Transparent • Highly scalable Managers production pricing t
Slide 20: Poll Question 2
POLL QUESTION 2 What are your plans with regards to SEPA Direct Debit mandate management? a) Manage in house b) Outsource migration only c) Completely outsource the whole mandate management process d) Not applicable – we do not have direct debits 20
Slide 21: Summary
Summary SEPA end date 1st February 2014 – Organisations need to act to now to migrate their flows to SEPA SEPA can be leveraged to re-engineer European cash management processes SEPA Direct Debits requires specific planning and analysis – Choosing scheme and mandate management strategy is critical C
Slide 22: Q&A
Q&A citi
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